KPN profits top forecasts

Dutch KPN Telecom which holds a 21 per cent stake in Eircom, posted better-than-expected 2000 net profit including one-off gains…

Dutch KPN Telecom which holds a 21 per cent stake in Eircom, posted better-than-expected 2000 net profit including one-off gains today and said it expected 2001 sales to rise by 10-15 per cent.

The company also said it would sell non-core assets as part of its efforts to reduce its heavy debt burden, as expected. It did not detail which assets would go on the block.

However the sell-off is likely to include its 21 per cent stake in Eircom, worth up to euro 1.5 billion.

The company said it expected 2001 earnings to increase by about five per cent from 2000's euro 5.76 billion.

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In addition, KPN said it planned to return to overall net profit in 2003, after posting a net loss of euro 626 million.

KPN reiterated that it would float its KPN Mobile arm during the course of 2001, despite market rumours that it might delay the move.