THE HAGUE (dpa-AFX) - Dutch telecommunication firm Royal KPN NV (KPN, KKPNY.PK, KKPNF.PK) reported a sharp plunge in first-quarter 2014 net profit to 3 million euros, from last year's 152 million euros.
The firm clocked quarterly revenues of 2.0 billion euros, down 8.2%, versus the prior-year figure of 2.175 billion euros. For the recent quarter, adjusted revenues of 1.99 billion euros were 7.7% lower year-on-year due to the continued competitive environment and price pressure in all mobile markets, and the ongoing decline of the Business market size.
As a result of declining revenues and phasing out of handset lease at the KPN and Hi brands, adjusted EBITDA slid by 21% year-on-year to 621 million euros.
The company said its first-quarter results were impacted by the competitive environment in its mobile markets, leading to continued decline of ARPUs, and pressure on the total market size in Business.
KPN's Chief Executive, Eelco Blok, commented, 'The E-Plus sale is currently subject to a Phase II review by the European Commission. We are confident we will obtain regulatory approval in June and that the sale will complete shortly thereafter. This will allow us to pay a sustainable and growing dividend combined with a solid financial profile. Post completion, we will own a 20.5% stake in Telefónica Deutschland and will potentially benefit from dividend payments.'
KPN recommences sustainable dividend payments with a dividend of 0.07 euros per share in respect of 2014, subject to closing of the E-Plus sale. The dividend pay-out structure would include 1/3 interim dividend planned in August 2014 and 2/3 final dividend in April 2015. Dividend per share is likely to grow for 2015.
Copyright RTT News/dpa-AFX