KPN’s 3Q09 profit up 14% on lower costs

27 Oct 2009

The Netherlands’ largest telecoms group by subscribers and revenues KPN Telecom (also known as Royal KPN) posted a 14% rise in net income for the three months ended 30 September 2009 on the back of a cost-cutting initiative and steady demand for its products and services despite the prevailing downturn. Associated Press reports KPN’s net profit as EUR398 million (USD593 million) for the period under review, up from EUR349 million in the third quarter of 2008, although turnover was down 5% year-on-year at EUR3.33 billion due, it said, to the disposal of a non-profitable consulting business during the year. In the wake of the results announcement the group’s CEO Ad Scheepbouwer said he expected the company to meet all financial targets for this year, including a dividend increase to EUR0.80 per share in 2010, up from EUR0.60 in 2008. Scheepbouwer noted ‘a resilient performance in our Dutch…business, solid profitability at mobile international and an unchanged economic impact on our businesses’ despite the recession.

Netherlands, KPN