Dutch cable firm KPN cuts even more jobs as revenues dwindle
(City A.M. (UK) Via Acquire Media NewsEdge) DUTCH telecoms group KPN will cut up to a further 2,000 jobs after frugal consumers and stiff competition drove down quarterly revenues in its mobile division, causing profits to miss expectations.
Shares in the group, which in 2013 fended off a takeover bid by top shareholder Carlos Slim's America Movil, fell 4.75 per cent yesterday after it said fourthquarter mobile revenues fell 13 per cent year-on-year.
That was steeper than a 9.6 per cent decline the previous quarter, and in part reflected consumers sticking to monthly subscription allowances, rather than paying for additional services.
KPN said its business division also saw a fall in revenues accelerate from the third quarter, as companies made fewer phone calls and a sluggish economy resulted in fewer new contracts.
To improve margins in a climate of falling revenues, KPN said it would cut 1,500 to 2,000 more jobs in the Netherlands, having already axed 4,650 positions in the country since 2011.
KPN had just over 26,000 staff in total at the end of 2012. Overall, earnings before interest, tax, depreciation and amortisation fell 30 per cent in the fourth quarter to €614m (£508.7m), below the €652m that was expected by analysts. Revenues in this business segment increased by 2.5 per cent, with core profit rising by 16 per cent.
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