Dutch telecom KPN says 1st quarter profit rose 41 percent on cost-cutting

KPN profit rises 41 percent Q1

AMSTERDAM — Royal KPN NV, the biggest Dutch telecoms company, reported Tuesday a 41 percent rise in earnings for the first quarter, due mainly to cost-cutting.

Net profit was €448 million ($597 million) compared with €317 million in the same period a year earlier. Sales fell 3.5 percent to €3.28 billion.

KPN’s main business in the Netherlands has seen declining revenues for years, but the company is expanding margins by cutting jobs and reducing costs. KPN said it reduced staff by 945 in the first quarter, leaving it with 32,203 workers. It expects to cut 1,500 more jobs this year.

KPN also owns the third largest mobile telephony provider in Germany, E-Plus, where revenues were up 1.8 percent to €999 million and operating profits rose 4.3 percent to €384 million.

“In the first quarter we continued to feel top-line pressure as a result of the economic conditions in the business markets and regulation,” said Chief Executive Ad Scheepbouwer.

He added that the service revenue “trend in Germany is improving” without a decline in margins.

KPN carried €11.4 billion in net debt at the end of the quarter.