KPN reports rising profit in Q4, announces share buyback plan

26 Jan 2010

Dutch telecoms group KPN today reported that fourth-quarter net income for the period ended 31 December 2009 rose to EUR1.08 billion (USD1.52 billion) from EUR296 million in the same period a year ago. The figure included a EUR705 million tax credit at its German mobile telephony arm E-Plus. After a review, KPN discovered it can take more tax deductions from past losses at E-Plus than it thought. Group revenue and other income from existing operations, excluding disposed operations at Getronics, fell 6.9% from EUR3.62 billion to EUR3.37 billion, it said; the telco’s reported revenue dropped 9.3%. In addition, KPN has cut or outsourced 3,554 jobs in the past year, equivalent to around 10% of its work force, which was 33,148 at year-end. It said it planned to cut or outsource an additional 2,000 jobs in 2010. The firm also confirmed its outlook for 2010 and announced a new EUR1 billion buyback programme for this year.

Netherlands, KPN