Posts filed under ‘KPN’
The Netherlands’ dominant telecoms group Royal KPN has reported a sharp fall in net income for the three months to 31 December 2008, but said it was not being affected by the global economic recession and fully expects to record growth in the coming fiscal year. KPN reported fourth-quarter net profits of EUR295 million (USD383 million), down from EUR1.58 billion in the corresponding period of 2007 when the telco booked a one-off tax gain of EUR1.2 billion. Revenues in the October-December 2008 quarter amounted to EUR3.72 billion, a marginal 1.6% rise from EUR3.66 billion previously, bolstered in the main by growth at KPN’s German mobile telephony arm, E-Plus. For the full year, KPN said 2008 net profit slumped by 50% to EUR1.34 billion, although sales rose by 16% to EUR14.6 billion.
KPN reported that fewer customers are cancelling fixed line subscriptions in the Netherlands, adding that operating earnings at its domestic operation grew slightly for the first time in years. ‘KPN experienced only a limited impact on its operational performance from the economic downturn in the fourth quarter,’ the company said in a press release, before repeating its forecasts for 2010 of EUR15 billion (sales) and EUR5.5 billion (operating profit), equivalent to growth of around 3% and 9% on 2008 levels.
KPN (Netherlands) has revealed it is launching a no-frills, low-cost MVNO service in France under the brand name Simyo, leasing network capacity from Bouygues Telecom to piggyback the service. Reuters reports that the launch, which continues the group’s cautious approach to expanding beyond its core markets, will take place on Sunday with plans to expand its activities through the coming year. KPN sees growth potential in a pre-paid market it considers underdeveloped and overly expensive. It will target specific demographic groups (eg ethnic minorities) and lower-income groups with an offer promising call costs of EUR0.19 (USD0.25) per minute – which it says undercuts the current average of EUR0.32 per minute.
KPN has closed the acquisition of Debitel’s Dutch operations including 300,000 postpaid customers and around 230,000 prepaid customers. A part of the Debitel customer base uses the network of Vodafone Netherlands. These customers, which are estimated at around 300,000, will be transferred to Vodafone. KPN is allowed to continue to use the Debitel brand name for 2.5 years, but the operator already announced that all Debitel and Lowcall customers will be transferred to the KPN brand soon. The transaction was announced on 23 October 2008. The completion of the acquisition is approved by the Dutch competition authority, NMa. In 2007, Debitel Netherlands had net sales of approximately EUR 247 million. The company has approximately 130 FTE. The divestment is the last step of Debitel’s strategy to divest its foreign operations to concentrate on the German market.