13 Apr 2005
The CEO of Dutch operator KPN has reaffirmed his company’s end-2005 financial targets, with little good news for investors at the firm’s annual shareholder meeting yesterday. According to Dow Jones Newswires, Ad Scheepbouwer said that 2005 sales are expected to remain unchanged from the EUR12.1 billion recorded last year, which was itself a 6% drop on the 2003 figure. EBITDA is forecast to drop by up to 9%, with profitability hit by expenditure on the upgrade of its domestic backbone network and also costs associated with planned staff cuts, which will see almost 30% of the workforce axed. Scheepbouwer added that KPN will have to look outside the Netherlands and its existing markets of Belgium and Germany for future growth opportunities.