KPN sees profits stabilising more quickly than forecast earlier

kpn headquartersDutch telecoms company KPN said on Wednesday that strict cost discipline is ‘translating into improving financial results’ and that full year operating profit will be in line with 2014.

In particular, the company boosted the number of broadband, mobile and triple play customers over the past year.

The company booked operating profit, adjusted for one-offs and incidentals, of €602m in the second quarter, up 1.5% on the year-earlier period. Total revenues fell 4% to €1.75bn.

Nevertheless, there is still progress to made in the business market and the product range is being simplified and adjusted for costs, chief executive Eelco Block said.

Job losses will also be speeded up, he said: ‘We have now reached agreement with the relevant works councils, which allows us to accelerate the FTE reduction programme in the second half of the year.’

Investors welcomed the news and KPN shares rose 3% in early trading.

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