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KPN sales fall 5.9% in Q4 on weak business market

2016-02-03 08:50:00| Telecompaper Headlines

(Telecompaper) KPN reported fourth-quarter revenues down 8.1 percent year-on-year to EUR 1.75 billion, and adjusted EBITDA fell 7.6 percent to EUR 582 million. Excluding a tax refund, organic revenues fell 5.9 percent. KPN reported continued growth in customers, but suffered from the weak enterprise market, declining traditional services and some changes in mobile pricing. The company said it's simplification programme delivered EUR 280 million in annual savings by the end of 2015, and it upgraded its target for total savings to EUR 450 million by the end of 2016. Net profit improved to EUR 254 million compared to a loss of EUR 16 million a year earlier, thanks to a profit on the sale of shares in Telefonica Deutschland. Part of the sale proceeds will also go to a special dividend of 13 cents per share, to be paid June 2016. KPN reduced investments by 14 percent in the quarter to EUR 355 million, helping free cash flow return to a positive 223 million versus a negative 179 million a year ago. For 2016, the Dutch operator forecast stable EBITDA, capital expenditure of EUR 1.2 billion, free cash flow of EUR 650 million and an increase in the dividend to EUR 0.10 per share from EUR 0.8. 

Tags: business sales market fall

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