KPN: Q4 profits up on Getronics purchase and German mobile growth

5 Feb 2008

Dutch former fixed line monopoly Royal KPN today reported a 6% rise in profits for the three months ended 31 December 2007, driven by strong growth and margins at its German mobile business E-Plus, and by the acquisition of Netherlands-based Getronics earlier in the year. The Dutch incumbent said EBITDA climbed to EUR1.22 billion (USD1.81 billion) from EUR1.15 billion in the same period of 2006, while net income rose three-fold to EUR1.1 billion on a 20% rise in revenues to EUR3.66 billion. KPN Chief Executive Officer Ad Scheepbouwer reported the operator’s first sales increase in more than a year as acquisitions and new services such as TV and IP telephony services made up for a decline in its fixed line customer base. Despite the positive performance, KPN plans to cut an additional 2,000 jobs between now and 2010, in addition to the target of 8,000 announced in 2005.

KPN said it expects its existing Dutch business to return to EBITDA growth in 2008 and to achieve revenue growth by 2010, helped by its broadband internet and TV businesses. The telco is forecasting revenues of more than EUR15 billion in 2010, EBITDA of more than EUR5.5 billion and a free cash flow in the years 2008 to 2010 of at least EUR2.4 billion per annum.

Netherlands, KPN