Dutch Telecom KPN Says 1Q Profit Up 40 Percent (AP)

AMSTERDAM, Netherlands - Dutch telecommunications company Royal KPN NV said Tuesday its first-quarter net profit rose 40 percent, helped by a one-time gain and an acquisition in the company's mobile-phone division.

Net profit increased to 383 million euros ($488 million) from 274 million euros in the same period a year ago. Sales rose to 2.92 billion euros ($3.72 billion) from 2.87 billion.

The company's shares rose 4.6 percent to 9.76 euros ($12.43) in early trading in Amsterdam.

KPN booked a one-time gain of 65 million euros ($83 million) for the sale of its Xantic satellite operations, versus 21 million euros in one-time gains a year earlier. The company also consolidated results from Telfort, the Dutch mobile operator it bought in June for 1.1 billion euros.

Revenue at the company's fixed line division fell 2.3 percent to 1.68 billion euros ($2.14 billion), while mobile revenue rose 15 percent to 1.50 billion euros ($1.9 billion). KPN said it had signed 700,000 new subscribers in Germany, though it was increases in revenues from existing Dutch subscribers that most influenced the increase.

The company has also begun a major advertising campaign offering television via phone lines in the Netherlands.

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