je.st
news
KPN sales drop 4.9%, EBITDA down 15% in Q3
2014-10-28 08:22:00| Telecompaper Headlines
(Telecompaper) KPN reported third-quarter sales down 4.9 percent to EUR 1.98 billion, hurt by mobile price pressure and continued weakness in the enterprise market. EBITDA fell 15 percent year-on-year to EUR 633 million, of which 3 percent of the drop came from ending its handset leasing offer. The net result was a loss of EUR 76 million, in part due to a writedown of the value of its option to buy out Reggefiber by EUR 114 million. The Dutch operator said it was satisfied with the results, with customers growing on the mobile market and more bundled services delivered to businesses. Customer satisfaction also appears to be improving, following the simplification of the group's service range. KPN left its outlook unchanged, for growth in free cash flow next year, thanks to lower interest charges and taxes. The company also targets a higher dividend next year, compared to this year's 7 cents per share. For the rest of this year, KPN targets a stabilisation in results. Capex is expected to reach EUR 1.4 billion in 2014 and EUR 1.5 billion next year. KPN said it plans to use part of the EUR 5 billion received from the sale of E-Plus to pay off EUR 2 billion in outstanding bonds. It will also increase its stake in Reggefiber and contribute EUR 200
Tags: in
sales
drop
q3
Category:Telecommunications