KPN announced wide-ranging job cuts after reporting falling sales and profits in 2013.
 
The Netherlands-based operator said 1,500-2,000 jobs would be lost by 2016 as part of a restructuring plan that is expected to lead to €300 million in cost savings.
 
Full-year 2013 group revenues fell 10 percent year-on-year to €8.5 billion, while net profit was down 6.7 percent to €293 million after the company made a loss of €108 million in Q4.
  
The results exclude the contribution E-Plus, which KPN is in the process of selling to Telefónica.
 
KPN chief executive Eelco Blok said he remained “confident” that regulatory approval would be attained for the sale.
 
He added: “We intend to start paying dividends for the year 2014 again. KPN's financial profile will continue to improve after the sale of E-Plus. In addition, we may benefit from additional cash through the receipt of dividends from the 20.5 percent stake in Telefónica Deutschland.”
 
For 2013, KPN’s residential business was the only segment that reported growth, with sales up 2.5 percent, while all the other operations lost revenues.
 
The operator added a net 3,000 customers between October and December meaning it had total 7.35 million at year-end.
 
Of these, 323,000 customers signed up for KPN’s 4G LTE network; this was up from 98,000 three months earlier. 
 
Blok said that the operator expects its financial performance to stabilise toward the end of 2014.
 
“We have now laid a strong foundation and expect the financial results stabilise towards the end of the year 2014 and that the free cash flow will grow in 2015,” he commented.
 
KPN spent much of last year fighting a takeover attempt from America Movil. It is also facing intensifying competition in the Netherlands, with cable operator Ziggo agreeing last week to a full takeover bid by Liberty Global.
 
Carrie Pawsey, Senior Analyst at Ovum said that the downward trend of revenues puts KPN under greater risk of takeover.        
 
“The biggest problem for KPN is that the telecoms industry as a whole is very reliant on economies of scale and what KPN is having to do is selling off its non-performing assets. We can see the benefits of this but the downside is that the sale would make KPN a smaller entity [that] would not benefit from economies of scale,” explained Pawsey.
 
A recent market report by Ovum predicts that mobile market revenues in the Netherlands will decline at a CAGR of 1.1 percent over the 2013-18 period. 
 

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms