Austerity pays off for KPN

9 Aug 2004

Royal KPN has doubled its second quarter net profit, from EUR183 million to EUR369 million thanks to a policy of job cuts and lower interest payments as a result of a declining debt pile. Sales slightly disappointed, falling 1% to EUR2.93 billion, primarily due to its shrinking fixed line business. Indeed, for the full year sales are expected to fall by around 2%; within that figure fixed line revenues are likely to decline by 6% while wireless sales will rise by 7%. Mobile operations saw an increase in sales in the second quarter from EUR1.27 billion in 2003 to EUR1.34 billion a year later on the back of strong customer growth in Germany and Belgium. In total the group claimed 15.56 million wireless customers, of which 1.45 million were i-mode compatible.

Netherlands, KPN