KPN said it would look at small M&A targets in the Netherlands as it reported falling sales and profits in 2014.

The Dutch operator, which made a financial investment in Telefónica Deutschland following the sale of its E-Plus business to the Spanish company, said any excess cash would be used for M&A, dividends and improving financial flexibility.

A flat fourth quarter meant full-year revenues, adjusted for the impact of restructuring costs and incidentals, were down five percent to €8 billion.

EBITDA and net profit were down 15 percent and 18 percent respectively.

However, KPN said opex savings were “ahead of plan” with €140 million more cut in 2014 than 12 months previously.

[Read more: KPN, Join select ZTE for managed service deals in Europe]

Further it said it had significantly reduced the number of propositions it offers both retail and business customers.

Sales in its Consumer Residential business fell 1.7 percent to €1.9 billion despite APRU growing 2.3 percent.

The number of customers signed up to broadband rose by 41,000 and to IPTV by 83,000. KPN said the introduction of its TV Everywhere offering, enabling customers to watch TV and recording on all devices, was a clear differentiator in the Dutch market.

An increase in the number of 4G LTE customers, to 1.3 million, was not enough to stop revenues at KPN’s Consumer Mobile arm falling 6.4 percent to €1.5 billion as subscribers continued to switch to cheaper tariffs.

Enterprise revenues were the worst hit, falling over eight percent to €2.9 billion. KPN said a double whammy of businesses continuing to rein in spending and the total size of the business shrinking were to blame.

Meanwhile, the operator’s wholesale and operations arm saw revenues slide 4.7 percent to €2.2 billion due to lower demand and falling prices.

[Read more: KPN, Vodafone fined over net neutrality breaches in the Netherlands]

KPN Chief Executive Eelco Blok commented: “2014 was a transformational year for KPN in which we made good strategic progress. Following the sale of E-Plus we acquired the remaining stake in the FttH joint-venture Reggefiber, further strengthening our position in The Netherlands.

“The investments in our customers, products and networks have resulted in growing customer bases and all-time high customer satisfaction.”

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