Dutch telco KPN reports 4.5% rise in Q1 core profit

AMSTERDAM (Reuters) – Dutch telecom company KPN said on Friday its core profit increased 4.5% in the first three months of the year, driven by growing demand from consumers and businesses.

The largest Dutch telecom provider ended years of sales decline last year, and in the first quarter of this year posted a 2% rise in revenue to 1.31 billion euros ($1.38 billion).

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), and after leases, were 593 million euros.

Both were roughly in line analyst forecasts in a poll provided by the company.

KPN reiterated its outlook for 2022, forecasting slight growth in core earnings.

CEO Joost Farwerck said strong demand from small and medium-sized companies provided “confidence” that total business revenue would stabilise by the end of the year.

KPN has been expanding its fibre optics network to reach 80% of Dutch households by the end of 2024 in its biggest infrastructure investment programme in two decades.

($1 = 0.9498 euros)

(Reporting by Bart Meijer; editing by Subhranshu Sahu and Jason Neely)