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General

Is KPN's strategy sustainable over the long term?

Monday 4 May 2020 | 12:02 CET | Author: Tim Poulus | Market Commentary
KPN has not been able to return to sales growth and seems to have accepted that in its current strategy. Can the Dutch operator try anything different? Its share price has been falling since March 2016, with only a small pick up in 2019 on takeover rumours. For the moment, the company's high profitability provides a defense, but management may need to rethink some of its sacred cows, such as vertical integration and convergence. Running out of assets to sell in order to boost cash flow will create a challenge, not to mention the coronavirus impact on the enterprise market. 

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Categories: General
Companies: KPN
Countries: Netherlands
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