KPN announced its results for the fourth quarter and full year 2010. Revenue came in at EUR 3.39 billion in Q4 and EUR 13.39 billion for the full year. EBITDA for the quarter totalled EUR 1.36 billion and hit EUR 5.48 billion for the full year. Net income was at EUR 475 million for the quarter (EUR 0.31 per share) and EUR 1.80 billion for the full year (EUR 1.15 per share). Both revenue and EBITDA were slightly lower than market expectations but profit was still in line with expectations.
KPN said it was satisfied with the results. The annual results are in line with its own objectives, despite heavy economic and regulatory headwinds. Competition also proved fierce in the period. Sales went lower at KPN’s Dutch operations and Getronics, while book gains on property sales declined. This was offset by the operator’s international mobile activities and iBasis, which gave a positive note to the whole.
KPN ended the year with a net debt to EBITDA ratio of 2.2, well within the company’s target 2.0-2.5. The number of employees was at 30,599. KPN has cut 9,385 jobs since 2005, against a target of 10,000. The difference was offset by reducing the number of contractors.
KPN reiterated its forecasts for 2011: an increase in EBITDA and free cash flow, a similar capex budget and a minimum dividend of EUR 0.85. KPN completed its EUR 1 billion share buy-back programme in 2010 and announced a new one for this year. Eelco Blok will succeed CEO Ad Scheepbouwer on 6 April. Until then, KPN will provide no longer term targets. The operator did give details on the impact of the MTA cuts in the Netherlands, Belgium and Germany, forecasting a sales loss of EUR 500 million for 2011 and of EUR 125 million in 2012. EBITDA will be affected by EUR 200 and EUR 50 million respectively.
