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KPN plans rights issue after weak Q4 results
2013-02-05 09:11:00| Telecompaper Headlines
(Telecompaper) KPN saw results deteriorate in the fourth quarter, mainly due to strong competition on the mobile market. Revenues fell 3.0 percent, or 2.4 percent on an underlying basis, to EUR 3.27 billion (including EUR 221 million in book gains). EBITDA fell 15 percent (underlying -16%) to EUR 1.12 billion, with the EBITDA margin losing almost 5 points to 34.2 percent. The operating result was EUR 129 million (-70%), and the net loss EUR 160 million (EUR 0.11 per share). The company's (reduced) targets for 2012 were reached as a whole, helped by asset sales. In the Netherlands, KPN said matters were stable; Germany meanwhile is heading towards a lower margin and lower sales growth. KPN said it will be forced to hold a rights issue of EUR 4 billion to strengthen the balance sheet. The operator has also formulated some new goals. For example, the Dutch broadband market share must be at least 40 percent and reach even 45 percent in the longer term. The mobile market share must be at least 40 percent. KPN has not excluded further job losses after 2013 as part of its efficiency measures.
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Category:Telecommunications