KPN chief executive Eelco Blok predicted that the Netherlands-based operator would see an improved performance in the second half of this year after it reported falling revenues and profits in Q1.

Profit fell 51 percent year-on-year to €288 million between January and March, while revenues declined 1.4 percent to €3.2 billion.

Blok said the results were according to plan in what he said was a year of transition.

The company’s home market was the main cause; revenues there fell 4.7 percent to €2 billion.

Decline was registered across the board, with sales falling in consumer mobile, consumer residential and enterprise.

However, said an “accelerated investment strategy for The Netherlands” is on track.

KPN revealed it increased capex by €78 million during the quarter, including upgrades of the fixed and mobile network, increased spend on customer premises equipment related to IPTV and FttH activations, and investments in IT.

There was better news in KPN’s international business unit, which saw sales increase two percent to a shade over €1 billion, principally thanks to growth in Belgium and Germany.

iBasis, the company’s wholesale arm, also registered a rise – reveunes there increased 13 percent to €255 million.

Blok added that the previously announced job losses, which could number up to 5,000, will now conclude by the end of 2012, two years earlier than planned.

Further, group headquarters have been given a “tough but achievable” target to reduce costs by 30-40 percent by 2013, the CEO added.