KPN sees solid EBITDA result in Q4

KPN said it expects a solid EBITDA result in the fourth quarter. The operator expects to see then a smaller impact from cuts to MTA rates at its subsidiaries in Germany and Belgium and benefit from seasonal effects at its business unit KPN Corporate Market, the company said at a presentation of its third-quarter results. Earlier the group maintained its full-year outlook for 2011 of EBITDA over EUR 5.3 billion, capex of less than EUR 2 billion higher free cash flow and a dividend of at least EUR 0.85 per share. For 2012, it expects cash flow of EUR 2.4 billion and a dividend of EUR 0.90, and in 2013 the dividend should increase to 95 cents. From the start of 2012, it will also implement a new structure, splitting its Consumer NL division into fixed and mobile units and merging its Belgium operations with 'Rest of the World'. New heads of the Dutch units will be named. KPN also expects an improvement its net debt-to-EBITDA ratio, thanks to EBITDA growth. In Q3 net debt was at 2.5 times EBITDA, the maximum for the operator's targets. In addition, KPN announced a contribution of EUR 21 million to its pension fund in Q1 2012, due to the recent drop in coverage to 96 percent. At its fixed-line operations, KPN lost 35,000 lines in Q3. The company expects the total line loss for 2011 will be similar to 2010, which suggests the loss of another 35,000 lines in Q4. The operator expects to profit from accelerated growth in fibre. In the last quarter of this year, the company will unveil the earlier announced 500Mbps service over FTTH. Its unit Telfort will launch FTTH services in 2012, and KPN also hopes to be able to offer improved VDSL with pair bonding in Q1 2012. By 2013, the company targets a FTTH coverage of 20 percent of the population. Also in Q4 this year, KPN will introduce new business mobile plans, with integrated SMS, voice and data bundles. A new mobile tariff structure for Telfort is planned for January 2012.