KPN earnings rise 41%

Dutch phone company Royal KPN said its quarterly profit rose 41%, helped by a one-off gain from the sale of its mobile satellite assets and a strong performance from its wireless division, according to a Dow Jones report.

The report said net income for the first quarter improved to 384 million euros ($486.6 million) from 273 million euros a year earlier.

The profit figure included a 65 million-euro one-time gain associated with the sale of its global mobile satellite business Xantic.

Sales climbed 3.9% to 3 billion euros, thanks to the contribution from recent acquisition Telfort and as a higher number of working days contributed about 1% to revenue.

KPN's mobile division posted a 47% rise in operating profit, more than offsetting a 4% decline at the fixed-line division.

European telecom incumbents are battling to stem weaker sales in their fixed-line businesses while fending off increasing competition in the mobile arena. KPN operates in one of Europe's more-competitive markets, the report said.