KPN 1Q Net Profit Down 18%, Repeats FY07 Guidance"

AMSTERDAM -(Dow Jones)- Dutch telecoms operator KPN, Tuesday reported a 18% drop in first quarter net profit compared to a year ago - when net result was boosted by a gain - but said it is on track to meet its full year guidance.

KPN reported a first quarter net profit of EUR313 million from EUR383 million a year ago, below analysts' expectations of EUR353 million. The net result in the first quarter of 2006 included a book gain of EUR65 million.

First quarter sales came in at EUR2.92 billion, flat from last year's figure. A drop in sales on the company's fixed lines was offset by rise revenues on mobile services.

Analysts had expected KPN to report first quarter sales of EUR2.98 billion.

KPN repeated its full year 2007 targets of stable figures for what it calls 'sales and other income' and for earnings before interest, taxes, depreciation and amortization, or Ebitda.

In 2006, the company reported sales and other income of EUR12.06 billion and Ebitda of EUR4.84 billion.

KPN shares have risen strongly over the last year on the back of several strong earnings reports. On Monday, the stock closed EUR12.62, more than 35% higher than the share price was one year ago.

Company Website: http://www.kpn.com

-By Mathijs Schiffers; Dow Jones Newswires; +31-20-5890270; mathijs.schiffers@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 8th May 2007