KPN sales fall; barely profitable in first quarter

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News,Business

AMSTERDAM (AP) — Royal KPN NV, the Dutch telecommunications company partly owned by Mexican billionaire Carlos Slim, says revenues fell in the first quarter and earnings dropped 98 percent due to falling profitability of its mobile businesses, and a shrinking business market in the Netherlands.

An unaudited figure the company released Friday indicated net profit was 3 million euros ($4.2 million), down from 152 million euros in the first quarter of 2013. Revenues fell 8.6 percent to 2.0 billion euros.

KPN is trying to sell its German mobile telephone service arm E-Plus to Spain's Telefonica for approximately 8.6 billion euros in a deal that is receiving close scrutiny from European regulators.

The company predicted "financial performance stabilizing toward the end of 2014."

Slim's America Movil owns around 25 percent of KPN.

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