KPN’s Q4 results lead to further job cuts
KPN is to cut up to 2,000 jobs after it reported a 13% year-on-year drop in its Q4 mobile revenues.
The results represent a 9.6% steeper decline compared to the previous quarter and illustrate the operator’s struggling position in the Dutch mobile market.
The company’s net loss is said to have widened to €224 million during the quarter, compared with €144 million a year earlier.
Having cut 4,650 positions in the Netherlands since 2011, KPN said it would cut 1,500 to 2,000 more as it attempts to improve margins.
The company’s CEO, Eelco Blok, said he was confident mobile revenues would pick up again during 2014, and also pointed to the potential sale of its German unit to Telefónica as likely to improve cash flow. The deal is still waiting approval, following an investigation from EU anti-trust regulators.
“We are confident that we will obtain regulatory approval for the sale of E-Plus and 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% stake in Telefónica Deutschland," said Blok.
During 2013 KPN is said to have invested €1.6 billion – 2.6% more than in 2012. This was spent primarily in its mobile networks, including the roll-out of 4G in the Netherlands and Belgium, and on upgrades to its copper network.