KPN net profit beats analyst expectations as job losses continue

7 Feb 2006

KPN surprised analysts today by reporting net profit for the fourth quarter of 2005 some EUR250 million higher than the anticipated figure, coming in at EUR604 million. Boosted by the acquisition of Dutch cellco Telfort, sales climbed 2.5% to EUR3.0 billion. The results helped lift KPN’s share price by 6.5%, its biggest hike in four months. KPN also confirmed it remains on course to shed a fifth of its workforce by 2007: in the fourth quarter of 2005 over 2,000 employees lost their job, bringing the overall number employed to 26,600. Revenue in 2006 is forecasted to show ‘low single-digit growth’, while EBITDA is expected to remain flat. In the wake of TDC’s acquisition by private equity groups, speculation remains that KPN may itself be a takeover target.

Netherlands, KPN