UPDATE 1-Surge in investment hits Deutsche Telekom Q1 profit

Wed May 8, 2013 1:42am EDT

* Q1 Adj. EBITDA 4.29 bln vs 4.25 bln avg in Reuters poll

* Q1 investments exceeded 3 bln euros

* Keeps 2013 outlook adj. EBITDA of around 17.4 bln euros

FRANKFURT, May 8 (Reuters) - Deutsche Telekom's operating profit fell 4.3 percent in the first quarter, hit by a surge in investment focused on its major markets in Europe.

First-quarter earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items, came in at 4.29 billion euros ($5.6 billion), slightly above an average forecast of 4.25 billion euros in a Reuters poll.

Deutsche Telekom said on Wednesday investments came to more than 3 billion euros in the first quarter, up almost 40 percent from last year, mainly on expenditure for the acquisition of mobile spectrum in the Netherlands.

Germany's former monopoly said it still expected EBITDA, excluding special items, to come in at around 17.4 billion euros in 2013. That outlook excludes earnings streams from MetroPCS, which Deutsche Telekom bought and merged with its T-Mobile USA unit.

The Bonn-based company did not reiterate its outlook for 2013 EBITDA, including MetroPCS, of around 18.4 billion.

"We will announce the impact that has on our figures when we announce our halfyear figures in early August," the company said about the contribution of MetroPCS.

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