Dutch telecoms group KPN today kept its full-year guidance after reporting better-than-expected third-quarter results driven by higher service revenue growth in Germany and strong margins.
The former Dutch telecoms monopoly, which had guided for 2010 core profit of €5.5 billion, said quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) rose 5.9 per cent to €1.41 billion on cost-cutting.
KPN posted sales of €3.38 billion, up 1.4 per cent from last year. Analysts had forecast near-flat sales of €3.3 billion.
"KPN made good progress across the group in the third quarter," outgoing CEO Ad Scheepbouwer said in a statement.
Mobile International delivered continued profitable growth, especially with Germany delivering higher service revenue growth and a strong margin," he said, adding that the group was confident of achieving its objectives for 2010 and kept the outlook for 2011.
European rival Mobistar of Belgium last Thursday reported a slightly better-than-expected 4 per cent fall in quarterly core profit while Norway's Telenor is expected to report an 11.2 per cent fall in third-quarter core earnings tomorrow.