KPN 4Q Net Profit Surges on EUR1.1 Billion Income Tax Gain

AMSTERDAM -(Dow Jones)- Dutch telecom company Royal KPN, Tuesday posted a large rise in net profit in the fourth quarter ending Dec. 31, as it booked a EUR1.1 billion gain in corporate income tax.

Net profit rose to EUR1.58 billion from EUR427 million in the same quarter of 2006.

KPN also said it aims to pay back EUR2 billion to shareholders this year.

Analysts had expected KPN's net profit to fall 11% to EUR382 million. Profit before income tax rose to EUR480 million from EUR206 million, KPN said.

In recent years, KPN hasn't paid income tax in The Netherlands owing to losses at its German unit E-Plus.

Revenue in the fourth quarter was EUR3.66 billion from EUR3.04 billion in the fourth quarter of 2006, helped by the integration of Dutch IT services company Getronics which it bought in October for EUR766 million to bolster its IT activities.

Earnings before interest, tax, depreciation and amortization, or Ebitda, rose slightly to EUR1.22 billion from EUR1.15 billion.

KPN shares closed at EUR12.36 Monday.

By Stefan Kloet; Dow Jones Newswires +31-20-6260770; stefan.kloet@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 5th February 2008