Dutch operator KPN reported full year results showing EBITDA in line with expectations while sales fell slightly below. The operator said it was able to mitigate the impact of the economic downturn by cost reductions with its Dutch telecom operations showing strong growth and Mobile International outperforming the market. KPN confirmed its outlook for 2010 and announced a EUR 1 billion share buy back programme for the year as well as a dividend per share of at least EUR 0.85 for 2011.
Revenue for 2009 fell 3.5 percent to EUR 13.49 billion while EBITDA rose 2.6 percent to EUR 5.19 billion. The operating profit, or EBIT, advanced 9.7 percent to EUR 2.85 billion while the net profit rose 63 percent to EUR 2.17 billion, with EPS up 73 percent to 1.33, including a one-off deferred tax asset in Germany of EUR 705 million.
For the fourth quarter, group revenue declined 9.3 percent to EUR 3.37 billion, while EBITDA increased 3.4 percent to EUR 1.307 billion. EBIT rose 22 percent to EUR 724 million and the net profit, including the one-off, jumped to EUR 1.093 billion from EUR 297 million a year earlier, with EPS at EUR 0.67.
KPN CEO Ad Scheepbouwer said while revenues declined, the operator’s focus on EBITDA, free cash flow and market shares continued to pay off.
The Dutch business maintained the positive momentum started in 2008 and generated strong EBITDA growth in 2009. Mobile International is expected to continue outperforming in 2010. In the first two years of its ‘Back to Growth’ strategy, KPN showed strong cash flow generation. Scheepbouwer believes that with the strategy, KPN will see growth in EBITDA, free cash flow and dividend per share for 2011.
