(Associated Press via NewsEdge) Dutch telecommunications provider Royal KPN announced that it doubled its second-quarter net profit thanks to a strong performance by its German mobile unit E-Plus.
KPN's second quarter net profit came in at 464 million euros ($590 million) compared to 230 million euros ($294 million) a year ago, when the profit was hit by several restructuring charges.
Second-quarter sales increased slightly to 2.98 billion euros ($3.8 billion) from 2.95 billion euros ($3.7 billion), with a 4.6% drop in sales at the company's fixed line unit offset by its mobile operations.
KPN's results were above expectations of analysts who had forecast the company would earn 361 million euros ($459 million) on sales of 3.01 billion euros ($3.8 billion).
The company also raised its own earnings forecast, saying that earnings before interest, tax, depreciation and amortization will show a low single digit percentage rise in 2006 compared to 2005. Previously, KPN said EBITDA would be flat.
Rene Verhoef, an analyst at Fortis bank, described the results as 'very strong.'
Company CEO Ad Scheepbouwer also said KPN would be interested in taking over a small German mobile phone company to strengthen its position in the country, where Deutsche Telekom and Vodafone Group together control about 75% of the mobile market.
c 2006 The Associated Press
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