27 Jul 2010
The Netherlands’ dominant telecommunications group KPN Telecom (or Royal KPN) has reported a 26% rise in net profit for the three months ended 30 June 2010, driven by its ongoing cost-cutting programme, although revenue fell 1.7% year-on-year to EUR3.35 billion (USD4.34 billion) amid difficult trading conditions in its domestic residential and business markets. KPN booked net profit of EUR465 million in 2Q10, up from EUR370 million in the corresponding period of 2009, beating analysts’ expectations of net income of EUR449 million. Earnings before interest, tax, deprecation and amortisation (EBITDA) was EUR1.4 billion it said, up from EUR1.3 billion in 2Q09. The drop in revenue in its home market was attributed in part to regulation, which KPN said was partly offset by an increase in revenue at its international mobile business. Commenting on the results, KPN chief executive officer Ad Scheepbouwer said: ‘All in all we are confident of achieving our objectives for 2010 and 2011 and have set an interim dividend per share of EUR0.27 for 2010 leading into the full-year target of EUR0.80 dividend per share.’ In addition, the telco confirmed its full-year outlook for revenue, EBITDA and free cash flow for 2010 and FY2011.