KPN profit up 26% in 2Q

Dutch operator KPN has reported a 26% increase in second quarter profit, as domestic declines were offset by gains in its international markets.
The company reported a net profit of €466 million for the quarter, representing earnings per share of €0.29.
Group revenue fell 1.8% to €3.35 billion as a result of declines in its domestic Dutch Telco and Getronics units. 
But revenue at US-based iBasis grew 34% year-on-year, and KPN's Mobile International unit lifted its own revenue 1.4% thanks to gains in Germany and the rest of the world.
The purchase of 70MHz of frequencies in German's recent spectrum auction for €284 million will allow the group to expand further in Germany, the company said.
Despite the gains KPN's free cash flow fell to €707 million from €739 million in Q209, and its net debt to ebitda ratio grew to 2.3x from 2.2x a year ago.
KPN's CEO, Ad Scheepbouwer, said he was pleased with the company's performance regardless of the domestic declines, pointing to its international gains.
“We are particularly pleased with the outcome of the German spectrum auction which allows us to pursue our growth ambitions in this market,” he said.
KPN has set an interim dividend per share of €0.27, with a full-year target of €0.80 per share.