Revenue rose 3 percent to 5.09 billion pounds, with its so-called new wave revenue from broadband and corporate networked IT services rising 10 percent to 1.91 billion pounds.
Analysts had expected EBITDA of 1.43 billion pounds and revenue of 5.07 billion pounds, according to Reuters Estimates.
"Our performance underpins our confidence that we can continue to grow revenue, (underlying) EBITDA ..., earnings per share ... and dividends for the year," Chief Executive Ben Verwaayen said in a statement.
"We are confident in our ability to improve shareholder returns and accelerate the strategic transformation of the business."
Its retail unit accounted for 37 percent of net DSL broadband additions during the quarter, compared to 38 percent in the previous quarter, giving it a broadband customer base of over 4 million.
In a drive to become a leader in networked IT services, its Global Services unit secured total contract wins of 1.6 billion pounds in the second quarter, with 9.2 billion pounds achieved over the last twelve months.