Dutch telecommunication firm Royal KPN NV (KPN,KKPNY.PK, KKPNF.PK) Tuesday reported a loss for its fourth quarter, reflecting lower revenues and higher operating expenses. Revenues declined as competition intensified in its mobile markets and it saw a slow-down in revenue growth in Germany.
In addition, KPN said it will not pay a final dividend for 2012; the interim dividend payment of 0.12 euros per share was paid in 2012. Furthermore, the dividend per share outlook for 2013 was adjusted to 0.03 euros per share.
In Amsterdam, KPN shares are currently trading down about 23 percent.
CEO Eelco Blok stated, "In 2012, KPN continued to face a challenging environment. The adverse macro-economic conditions continued to weigh on consumer confidence and on the investment plans of our business customers...In recent years, KPN's financial position has been impacted by rising debt levels combined with increased commercial investments."
In the fourth quarter, net loss attributable to equity holders was 162 million euros or 0.11 euros per share, compared to a profit of 176 million euros or 0.13 euros per share in the previous year.
Earnings before interest, tax, depreciation and amortization or EBITDA dropped 15 percent year-on-year to 1.12 billion euros, impacted by regulation of 17 million euros, restructuring costs and net positive impact from incidentals. Underlying EBITDA decreased 16 percent from a year ago.
EBITDA margin was 34.2 percent, compared to 39 percent in the prior year.
Operating profit fell 70 percent to 129 million euros.
Quarterly revenues and other income declined 3 percent to 3.27 billion euros. Revenues were 3.05 billion euros, down 7.3 percent from last year, reflecting sale of Getronics International and declining revenues in the Netherlands.
Revenues fell 12 percent in the Netherlands. However, the company expects its business in the Netherlands to stabilize towards 2014.
Total operating expenses advanced to 3.15 billion euros from 2.94 billion euros a year ago.
In Amsterdam, KPN shares are currently trading at 3.16 euros, down 22.93 percent, on a volume of 48.24 million shares.
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