Telecoms company KPN booked an 11% decline in net profit in the second quarter of 2011 as competition from free internet-based services continued.

The former state-owned monopoly said net profit fell to €414m, below analysts forecasts. Total turnover reached €3.3bn, down 2% on the same period in 2010.
‘The market and regulatory headwinds that we have been experiencing in Q1 continued to affect our financial performance in the second quarter, notably in our domestic business,’ CEO Eelco Blok said in a statement.
Nevertheless, the company remains ‘on track strategically, is soundly financed and we confirm our outlook for the year,’ Blok said.
KPN recently introduced a range of new more expensive mobile internet subscription packages in an effort to lessen the loss of income due to services like Skype and free messaging service Whatsapp.
KPN also announced plans to cut the workforce at IT service unit Getronics by 2,500 as part of a global reduction in its workforce first announced in April.
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