Royal KPN NV, the merger-buffeted Dutch telecommunications
company, on Tuesday reported a wider net loss for the fourth
quarter compared with a year earlier as revenue fell 14%, though
management expects its performance to stabilize toward the end of
the year.
The operator, whose business-communications and mobile units are
under pressure from an increasingly competitive Dutch market, said
its net loss widened to EUR224 million in the three months to Dec.
31 from EUR144 million a year earlier. Revenue fell to EUR2.06
billion from EUR2.38 billion.
The revenue figures exclude the contribution from KPN's German
unit E-Plus, which it is planning to sell to Telefónica Deutschland
assuming the deal gets the nod from the EU's competition regulator.
The decision is due in May, with analysts expecting Brussels to
give the transaction the green light.
KPN said it plans to resume dividend payments once the deal is
approved.
"KPN's financial profile will be further improved following the
sale of E-Plus," said Chief Executive Eelco Blok.
"Furthermore, we will potentially benefit from additional excess
cash by receiving dividends from the 20.5% stake in Telefónica
Deutschland, " Mr. Blok said.
For the full year, KPN swung to a EUR222 million net loss from a
EUR763 million net profit a year earlier on a 10% fall in revenue
to EUR8.47 billion.
Write to Matthew Curtin at matthew.curtin@wsj.com
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