Overall however underlying profit fell slightly due to the extremely competitive market in Germany and in its fixed line business.
In addition, KPN predicted that sales this year would rise between 10 and 15% from E 11.2 billion in 2000 and that underlying profit or earnings before interest, tax, depreciation and amortization (EBITDA) would increase 5% from E 3.4 billion excluding extraordinary items.
First quarter EBITDA was disappointing compared to the year-earlier period due to price reductions in fixed telephony and expenses from restructuring programs, in addition to costs to win mobile customers in Germany where the company is the country’s third largest mobile operator E-Plus.
The restructuring program, which involves job redundancies, should yield annual cost savings of E700 million as of 2003 when KPN hopes regain net profit.
In March the compnay issued a E626 million net loss after an extraordinary gain in 2000.
