KPN has invested in a Dutch cyber security company after transferring its stake in Jasper Technologies to its inhouse venture capital arm.

The announcement came as its poorly performing enterprise arm continued to hit its financials.

KPN Ventures is doubling the size of its fund to €70 million following Cisco’s recent $1.4 billion acquisition of Jasper, in which KPN held a minority stake.

It wasted no time in taking part in a €5.5 million funding round for EclecticIQ, which offers threat intelligence software technologies to the enterprise market.

The operator said the funding would help EclecticIQ to expand into new geographic markets and industry sectors.

The announcements followed the publication of KPN’s Q1 results, which saw revenues and earnings continue their downward curve.

Sales fell 3.9 percent year-on-year to €1.7 billion as the operator’s enterprise arm failed to arrest its worrying decline.

Revenues there were down 6.8 percent as “new” services such as cloud and the Internet of Things failed to offset a fall in “traditional” services.

Sales at its consumer business rose 2.8 percent as an increase customer numbers boosted growth in mobile services revenues in particular.

EBITDA fell three percent to €559 million, due in part to “temporarily” higher IT-related costs the fall.

CEO Eelco Blok said: “As a result of the transformation in the Business and Consumer IT operations domain we incurred additional costs in the first quarter.”

In March, KPN unveiled a new three-year strategy designed to provide annual savings of €300 million.

“The execution of our Simplification program is on track and will yield significant savings this year,” Blok maintained.

He added: “In the first quarter of 2016, we showed high value customer base growth and increased the number of products per customer in Consumer.

“This is driven by our successful strategy centered around households and the ongoing convergence of fixed-mobile, with a focus on our high value KPN brand.

“In Business, we are in a transformation phase with lower revenues from traditional Telco services, partly offset by promising growth in multi play and new services, such as cloud and Internet of Things applications.”

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