Alcatel-Lucent today announced its second quarter 2014 results, reporting revenues of Euro 3,279 million, growing 0.7% year-on-year at constant exchange rates and comparable perimeter (except as otherwise mentioned, all revenue variations are at constant exchange rates and perimeter, with accounting of Enterprise as a discontinued operation as of Q1 2014 and LGS as deconsolidated as of Q2 2014). Revenues for the Group excluding Managed Services, reflecting the termination or restructuring of loss-making contracts, grew 5.0% year-on-year. This was largely driven by a very strong quarter in wireless, notably with LTE roll-outs in China and US.
Gross margin reached 32.6% of revenues in the quarter, improving by 140 basis points year-on-year. This improvement was essentially driven by cost savings. The gross margin improved sequentially by 30 basis points, as improved profitability in several business lines and continuous improvement in fixed operation costs, more than offset the dilutive impact on gross margin of roll-outs in China.
Fixed costs savings reached Euro 94 million in Q2 2014, bringing the total to date to Euro 572 million. In particular, SG&A expenses decreased by 13.9% compared to Q2 2013. The ratio of SG&A expenses to revenues declined by 130 basis points to 12.1% in Q2 2014 compared to Q2 2013.
Adjusted operating income reached Euro 136 million in the quarter, or 4.1% of revenues, trebling compared to Euro 45 million in Q2 2013, or 1.3% of revenues. The profitability of our Access segment continued to improve, reaching positive territory at Euro 11 million in Q2 2014.
Segment operating cash flow was Euro 96 million in Q2 2014, versus Euro (41) million in Q2 2013. This improvement of Euro 137 million was driven mainly by an increase of the Access segment operating income. Free cash flow was Euro (205) million in the quarter and improved by Euro 42 million year-over-year.
As reported, the Group showed a net loss (Group share) of Euro (298) million in Q2 2014, or Euro (0.11) per share. The improvement of Euro 587 million compared to Q2 2013 is mainly explained by a Euro (552) million impairment charge in Q2 2013, while higher level of operating income was partially offset by higher restructuring charges and the accelerated amortization of issuance fees ahead of the secured loan repayment.
In early June we issued two convertible bonds, a zero coupon maturing in 2019 and a 0.125% coupon maturing in 2020. The aggregate proceeds of approximately Euro 1.15 billion will be used to fully reimburse in August the senior secured credit facility outstanding tranche, due 2019. In early July, we repurchased Euro 210 million of the 2016 Notes, halving the outstanding amount due at maturity.