On Tuesday, The Dutch telecom operator KPN presented the financial status for the quarter. The operator reported an 11.0-percent drop in net profit to 414 million Euros (US $601.08) for the second quarter on, blaming the rise of Internet-based telephone applications, reported AFP news agency.
According to the AFP news report, analysts had predicted a figure of about 441 million Euros (US $640 million) as polled by Dow Jones newswires.
"The market and regulatory headwinds we have experienced in quarter one continued to affect our financial performance in the second quarter, notably in our domestic business," said KPN's chief executive Eelco Blok, in a statement.
Based on official comments, AFP wrote that KPN's fall in revenue was particularly due to a "change in consumer behavior," in the wireless Internet sector. Increasingly, the users are favoring Internet-based telephone applications such as Skype, instead of making traditional telephone calls or sending SMS messages, wrote AFP.
As per the AFP report, the group's turnover also fell by 1.9 percent compared to the same period last year from 3.35 billion Euros to 3.29 billion Euros. Consequently, In the Netherlands, which accounts for more than half of KPN's revenue, sales have dropped by 2.6 percent, according to AFP’s report.
In fact, as a measure to compensate for this loss, KPN previously suggested that it should charge its customers to use Internet-based applications such as Skype or WhatsApp. But, the Dutch parliament in June adopted a law guaranteeing "Internet neutrality," sinking proposed plans by KPN and other service providers, AFP wrote.
The company then opted for a rates increase to access the Internet via its mobile phones. That increase is set to kick in from September, reports AFP.
This dip in profit is impacting the Dutch operator’s growth. In April, as reported by AFP, KPN was planning to cut the 30,000 workforce by 4,000 to 5,000 jobs in the Netherlands between 2011 and 2015.
On a positive note, KPN did, however, show a 7.5-percent rise in growth in Germany through its mobile phone subsidiary E-plus and 7.8 percent increase in Belgium through another mobile phone subsidiary called BASE, wrote AFP.
Antivirus software is not enough. Apex Technology Services used its decades of IT and cybersecurity
experience to create budget-friendly network security packages every company needs.
Please take a moment to fill out your information so we can contact you directly regarding your request.
Shabodi, an Application Enablement Platform (AEP) provider unleashing advanced network capabilities in LTE, 5G, 6G, and Wi-Fi 6, announced they have l…
Endpoint protection, also known as endpoint security, is a cybersecurity approach focused on defending computers, mobile devices, servers, and other e…
Databricks is an innovative data analytics platform designed to simplify the process of building big data and artificial intelligence (AI) solutions. …
Blue/green deployment is a software release management strategy that aims to reduce downtime and risk by running two identical production environments…
Lateral movement is a term used in cybersecurity to describe the techniques that cyber attackers use to progressively move through a network in search…