Dutch KPN telecoms reports 3Q loss despite customer growth
Dutch telecommunications firm KPN reported a third quarter loss on Tuesday blamed partly on the value of its share in a local fibre operator and despite growing its subscriber base.
The company has been through a period of restructuring which has also played a role in a re-alignment of alliances in the European telecoms sector.
The year-on-year third-quarter loss amounted to 76 million euros ($96.
6 million), compared to a net profit of 87 million euros a year earlier.
Overall revenue dipped by 4.
9 percent to 1.
97 billion euros due to a decline in mobile prices and an "ongoing decline of the business market size," a company statement said.
"Net profit was impacted by revaluation (of KPN's) Reggefiber option," KPN added, resulting in a 114 million euro loss.
"Excluding this impact, net profit was 38 million euros," it said.
The Hague-based KPN wants to raise its 51-percent majority stake in Reggefiber, a major fibre optics network supplier in the Netherlands.
The deal is currently under investigation by the Dutch Consumer and Market Authority watchdog (ACM), which still needs to give it the green light.
"KPN's best estimate for the likelihood of approval have been reassessed, based on the progress of the approval process," the operator said.
Meanwhile, KPN said it had rounded off the sale of German-based subsidiary E-Plus to Spain's Telefonica earlier this month.
KPN sold all its shares in E-Plus to Telefonica Deutschland for 5.
0 billion euros as well as a 20.
5-percent stake in Telefonica Deutschland in return.
After the sale it declared an interim dividend of 0.
02 euros per share or 85 million euros in total, paid on October 13.
In the Netherlands, more customers are signing on to KPN's extensive 4G network and fixed mobile bundles, the operator said.
"Consumer 4G subscriptions passed one million in Q3, up from 845,000 at the end of Q2," KPN said.
A former state-owned company that was privatised in 1994, KPN employs about 25,000 people world-wide.
Like other mobile and landline telephone operators, it faces stiff competition from free internet call programmes such as Skype.
KPN is also up against growing rivalry at home.
Earlier this month the European Commission cleared US-based Liberty Global's bid for telecoms competitor Ziggo, subject to conditions.
© 2014 AFP