KPN profits rise despite 'flat' sales

KPN, the Dutch telecommunications company, said third quarter profits rose despite lackluster sales, crediting an increase in profitability at its mobile telephony arm, an Associated Press report said.

The Associated Press report said Royal KPN's net profit was 355 million euros ($510 million), up 4.7% from 339 million euros. Sales were unchanged at 3.04 billion euros ($4.36 billion) as growth in mobile, internet and television subscription sales balanced a fall in sales at the company's traditional voice operations.

KPN's German mobile arm E-Plus saw operating profits rise nearly 80% to 134 million euros ($193 million) after a restructuring, the report said.

The rpoert quoted CEO Ad Scheepbouwer as saying that the results were 'in line with management guidance.'

In addition, KPN made a 'strategic move up the value chain into "&brkbar; services' during the quarter, he said in a statement.

Earlier this month, KPN bought IT consulting and services company Getronics for 766 million euros ($1.1 billion).