UPDATE 1-Portugal Sonae H1 net slumps 76 percent on costs

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LISBON, Aug 27 (Reuters) - Portuguese conglomerate Sonae (YSO.LS) reported a larger-than-expected 76 percent slump in first-half net profit to 24.2 million euros ($35.59 million) on Wednesday, hit by rising financial costs that offset an increase in sales.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 31 percent to 222 million euros while revenues rose 24 percent to 2.44 billion euros.

Analysts surveyed by Reuters had expected Sonae to post a net profit of 30 million euros.

Sonae said its retail business unit posted "sound" results with turnover rising by 26 percent, while EBITDA rose 16 percent. In the telecommunications division, EBITDA fell 7.1 percent, Sonae said.

In terms of costs, commercial properties like shopping malls produced a drop in value of 21.7 million euros after an increase in value of 102.8 million a year ago.

Consolidated net debt was 3.14 billion euros, an increase of 517 million euros from the end of 2007, mainly due to an increase of the retail business net debt. (Reporting by Axel Bugge and Andrei Khalip; Editing by Quentin Bryar)