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KPN scraps dividend on weak Q1

2013-04-23 09:26:00| Telecompaper Headlines

(Telecompaper) KPN reported first-quarter revenues down 8.8 percent to EUR 2.91 billion, affected by the sale of Getronics International (-3.9), declining revenues at its units NetCo, Business, Germany and Consumer Mobile, and regulatory effects (-1.7%). Underlying revenues were 4.3 percent lower. Almost all KPN units witnessed sales declines this quarter, with the exception of Consumer Residential (+9.4%) and Mobile Wholesale (+2.4%). The results are in line with market expectations. KPN maintained its outlook but will scrap its 2013 and 2014 dividends, both at EUR 0.03 per share. Dividend pay-outs are expected to resume in 2015. The company is now guiding for 2013 capex below EUR 2.3 billion and total capex for 2013-2015 below EUR 7 billion, including Reggefiber. The Netherlands activities are expected to stabilise towards 2014 while the next phase in the German strategy is expected to lead to service revenue growth combined with a lower EBITDA margin, especially in 2013. EBITDA reached EUR 994 million (-12%, underlying -8.7%) in the first quarter, and the net profit fell 54 percent to EUR 140 million. Capex amounted to EUR 535 million, with the free cash flow at EUR 85 million euros. The ratio of net debt to EBITDA is currently at 2.8 and is targeted to drop to 2.0-2.5 by the end of the year on the back of the bond issue. KPN eliminated 1,100 jobs during the quarter, bringing the total number of jobs scrapped to 3,000 out of a targeted 4,000-5,000 jobs by year-end.

Tags: weak dividend q1 kpn

Category:Telecommunications

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