Deutsche Telekom Q2 in line as US makes up for German investments

* Q2 adj E.BITDA 5.46 bln vs 5.45 bln avg in Reuters poll

* T-Mobile US almost half of Q2 sales, 39 pct of core profit

* Confirms 2016 outlook for adj. EBITDA of 21 bln euros (Adds detail, background)

By Harro Ten Wolde

FRANKFURT, Aug 11 (Reuters) - Deutsche Telekom (LSE: 0MPH.L - news) said on Thursday second-quarter core profit rose 8.6 percent as its U.S (Other OTC: UBGXF - news) . operations compensated for heavy network upgrade investments in Germany.

The company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items, rose to 5.46 billion euros ($6.10 billion), just above the average estimate of 5.45 billion euros in a Reuters poll.

Deutsche Telekom's U.S. unit was the main growth driver. It generated almost half of its second-quarter sales and almost 40 percent of core profit.

Last month T-Mobile US Inc, in which Deutsche Telekom holds a majority stake, reported quarterly results that beat estimates. It also raised its full-year subscriber growth forecast, as the posted customer gains surpassed expectations.

Under Chief Executive John Legere the No.3 U.S. wireless carrier has rolled out offers including free data for its users who play the popular smartphone game "Pokemon Go," its free video streaming service "BingeOn" and "T-Mobile Tuesdays" weekly perks, such as free food and movie tickets, to attract users.

Such efforts helped T-Mobile add 1.88 million customers in the second quarter. T-Mobile shares are at a nine-year high, giving the company a market capitalisation of almost $40 billion.

Deutsche Telekom is trying to copy the strategy in European markets where it is not a leading operator.

In its home market Germany, Deutsche Telekom is facing competition from Vodafone. Its German mobile service revenues were down 0.8 percent at 1.7 billion euros.

Investments rose 3.5 percent to 2.6 billion euros during the quarter.

Deutsche Telekom confirmed its 2016 outlook for adjusted EBITDA to rise to around 21 billion euros and free cash flow of around 4.9 billion euros.

($1 = 0.8953 euros) (Reporting by Harro ten Wolde; Editing by Maria Sheahan and Joseph Nasr)