Cost-cutting helps KPN lift 2nd quarter net profit

AMSTERDAM (AP) - Royal KPN NV, the biggest Dutch telecoms company, reported a 26 percent rise in net profit for the second quarter Tuesday thanks to cost cutting measures.

The company announced that profit for the quarter rose to euro465 million ($601 million) from euro370 million a year earlier. Revenue slipped by 1.7 percent to euro3.35 billion from euro3.41 billion 12 months ago.

"We are satisfied with KPN's performance in the second quarter, with profitability growing for the eighth consecutive quarter," CEO Ad Scheepbouwer said.

Scheepbouwer said the company remains confident of reaching its full-year forecast of revenue matching 2009's euro13.5 billion.

Revenue at the company's core Dutch telecoms business fell 4.3 percent to euro1.76 billion ($2.28 billion) from a year earlier due to a continuing decline in traditional telecom services and uncertainty about the economic crisis hitting the business market.

The company saw its number of consumer clients drop to 6 million in the second quarter from 6.8 million a year ago. However, KPN noted that a growing number of its mobile clients are switching to smart phones, leading to growth in its mobile data traffic.

Its mobile business customer base grew from 1.62 million in 2009's second quarter to 1.72 million, with 50 percent of them using mobile data services, up from 44 percent a year ago.

KPN's share price rose 1.5 percent in early trading to euro11.22 ($14.51).