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KPN plans more job cuts as Q4 sales fall 10%

2014-02-04 09:01:00| Telecompaper Headlines

(Telecompaper) KPN reported fourth-quarter sales down 9.6 percent to EUR 2.06 billion, excluding its German operation E-Plus, which is planned for sale to Telefonica. Only the company's Dutch residential activities reported growth, with sales up 2.5 percent, while all the other operations lost revenues on an annual basis, led by Dutch consumer mobile, down 15 percent. EBITDA fell 29 percent year-on-year to EUR 581million, in part due to the company abandoning its handset lease model. Operating profit still almost doubled to EUR 98 million, and the net loss was reduced to EUR 108 million or 4 cents a share. Including E-Plus, KPN posted a loss of 6 cents a share. After completing the job reduction plan started in 2011, which led to the loss of 4,650 positions, KPN announced a new round of lay-offs, which should lead to 1,500-2,000 jobs cut by 2016. Part of the company's simplification plan announced at the Q3 2013 report, the latest restructuring is expected to lead to EUR 300 million in cost savings. Pending the sale of E-Plus, which KPN said it's confident will go ahead, the company plans to resume dividends for fiscal 2014, with a payment of 7 cents a share.

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