KPN 2Q Net Down, Shares Rise on Improved Domestic Operations

AMSTERDAM -(Dow Jones)- Royal KPN, Wednesday said second-quarter net profit fell 12% due in part to a higher tax rate and higher interest, but shares rose after the Dutch telecom operator raised the outlook for its domestic business. KPN said net profit for the three months ending June 30 was EUR353 million compared with EUR400 million a year ago, below analysts' expectations for net profit of EUR380 million. But at its domestic business, KPN said it now sees flat earnings before interest, tax, depreciation and amortization compared with its previous guidance for a EUR100 million Ebita decline. "Our domestic performance has been ahead of our expectations, not only succeeding in achieving substantial growth in new services such as VoIP, TV and mobile data, but also in retaining more and more customers in traditional services... [read full story]