Dutch telecom KPN's Q2 profit up 4.8 pct

AMSTERDAM - Royal KPN NV, the largest Dutch telecommunications company, said Thursday its net profit rose 4.8 percent in the second quarter due to growth at its German mobile telephone business and better margins in the Netherlands.

Net profit was euro370 million ($526 million), up from euro353 million. Sales fell 6.9 percent to euro3.41 billion, mostly due to the divestment of some of its consulting businesses earlier this year. Stripping out the impact of those disposals, sales were down 2 percent, KPN said.

The company cut its sales target for 2009 to a range of between euro13.6 billion and euro13.8 billion, down from an earlier forecast of around euro14 billion.

Shares fell 1.3 percent to close at euro10 in Amsterdam.

"We continue to see limited economic impact on consumer markets but business markets are being impacted and there are no signs of economic recovery as yet," Chief Executive Ad Scheepbouwer said in a statement.

KPN maintained other financial goals, including for full-year operating profit — earnings before interest, taxes, depreciation and amortization of goodwill — of more than euro5 billion.

Operating profit in the first half year was euro2.48 billion.

The company slashed 136 jobs in the quarter, bringing its total cuts to 1,200 this year and to 7,103 since it began a major cost-cutting campaign in 2005. It now employs 35,502.

KPN carries net debt of euro11.8 billion.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.