KPNQuest fighting fit in failing market

Telecoms firm KPNQwest raised its full year forecast today, after posting a third quarter profit that beat analysts expectations.

Profit for the quarter - excluding costs and charges - was E2.7m (£1.6m), compared to a loss of E31.2m (£19.3m) in the same quarter last year.

Shares were up 10.5 per cent by 10.20am (GMT). Analysts had forecast a loss of E1.04m (£600,000), expecting the current weakness in the telecom sector to hit the company hard.

Revenue for the third quarter was E197.6m (£122.7m), 48.9 per cent higher than last year.

KPNQwest raised its full year revenue forecast to E800m (£400m) on the back of today's results, up from earlier expectations of E780m (£400m).

The company also said it expected a pro forma profit for the full year, after turning its first ever profit in the second quarter of this year.

Revenue for 2002 is expected to be between E1bn (£600m) to E1.75bn (£1.08bn), while pro forma profit is expected to be E130m (£80m) to E150m (£93m).