Dutch telecommunications firm Royal KPN reported that fourth-quarter profit fell 31% after the company incurred a restructuring charge, an Associated Press report said.
The Associated Press report said net income dropped to 427 million euros ($555 million) from 618 million euros ($801 million) in the same period a year ago, the company said in a statement.
Sales dropped 4.1% to 3.04 billion euros ($3.95 billion), mostly due to a decline in demand at KPN's fixed-line division, the report said.
The Associated Press report said the company took a 75 million euros ($98 million) charge in the quarter to restructure its newly acquired Telfort unit.
Last year, KPN benefited from one-time gains of 274 million euros ($355 million) from a pension restructuring and as Japan's NTT Docomo unwound its investments in the business, the report said.
KPN said that operationally, a rise in earnings at its mobile telephony division outweighed a fall in its fixed-line operations. The company expects to return around 2 billion euros ($2.6 billion) to shareholders in 2007, split evenly between dividends and share buybacks.KPN said that the transition all aspects of its business to an Internet compatible platform and the merger of its fixed-line and mobile operations by the start of 2010 would put a drag on earnings, balanced by the sale of real estate and more than 4,000 job cuts, the report said.