KPN sees Q2 revenue dip, but net profit grows

KPN reported that its second-quarter revenues for 2009 slipped 6.9 percent year-over-year to EUR 3.41 billion and said it is feeling the effects of business customers tightening their belts to deal with the current economic storm and a decline in its German mobile operations revenue. At the same time, however, the Dutch telco saw its net profit grow by 4.8 percent.

KPN's CEO Ad Scheepbouwer said in a statement that while he does not foresee an immediate uptick in the business services market, the service provider's consumer business remains stable. "We continue to see limited impact on consumer markets, but business markets are being impacted and there are no signs of economic recovery as yet," he said.

KPN saw a $400 million decline in revenue from Q2 '08 to Q2 '09. This decline included $181 million drop in Getronics revenue, while $120 million was attributable to its wholesale VoIP subsidiary iBasis. Although KPN lowered its first-quarter revenue guidance, KPN's CEO said that the telco does not see the need for more company restructuring, but it may make more job cuts if necessary. In 2008 KPN said it would eliminate 4,500 positions from 2008 to 2010.

 For more:
- Dow Jones Newswire has this article

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