KPN doubles quarterly profit
9 August 2004 , AMSTERDAM — Dutch telecoms firm KPN doubled its net profit in the second quarter of 2004 as earnings rose to EUR 369 million, slightly above analyst expectations.
9 August 2004
AMSTERDAM — Dutch telecoms firm KPN doubled its net profit in the second quarter of 2004 as earnings rose to EUR 369 million, slightly above analyst expectations.
Turnover was EUR 2.9 billion, showing little change on the same period in 2003, Dutch daily newspaper De Volkskrant reported on Monday.
KPN attributed the strong profit rise in the second quarter to reduced operating costs, reduced interest rate costs on debts and lower taxes.
Company chief Ad Scheepbouwer said on Monday the result was a "continuation" of the company's "solid growth"
Analysts had expected a good profit performance, but the KPN results were above expectations.
The number of KPN mobile phone customers rose to 15.6 million, a rise of 3.1 percent (500,000) compared with the same period last year. Its German and Belgian subsidiaries did particularly well.
Turnover in the landline telephone sector declined, but the number of ADSL internet subscribers grew to more than 1 million, Dutch public news service NOS reported.
Scheepbouwer was optimistic over the second-half of the year and expects strong profits despite the fact that KPN will incur greater costs in the last six months of 2004.
KPN will face extra costs of EUR 200 to 300 million due to intensified sales efforts, the start of its UMTS licence write-offs and possible higher pension fund contributions.
[Copyright Expatica News 2004]
Subject: Dutch news