KPN boosts FY09 profit 63% despite revenue slump

Dutch telco KPN's net profit grew 63% to €2.17 billion last year, with disciplined cost reductions more than compensating for a decline in revenue. 

Revenue fell 7.5% to €13.5 billion in FY09, largely due to a 30% decline in revenue from the iBasis ILD unit.
 
In its home market, consumer revenue dipped 0.8%, while business revenue fell 2.2% and wholesale revenue slumped 5.2%. The company was also required to pay down a combined €158 million from regulated tariff reductions.
 
Intake from Germany also fell 1.1%, to €3.18 billion. But revenue from Belgium rose 3.8% to €802 million, and revenue from the rest of the world soared 30% to €95 million.
 
KPN ended the year with €2.4 billion in free cash flow, while its net debt to ebitda ratio shrank to 2.1x in Q4 from 2.4x in Q3.
 
The company confirmed its outlook for 2010, predicting it will earn revenue in line with 2009, while boosting its ebitda by over €300 million. KPN added it expects ebitda to continue to grow in 2011.
 
Meanwhile, the CEO of KPN's Mobile International division, Stan Miller, has announced his intention to leave the company on February 1 “to pursue new opportunities.”
 
Miller has been involved with KPN since 1998, holding various positions across its mobile units, and also holds a seat on the board.
 
He will be entitled to a payout package worth €2.25 million, consisting of two years' base salary and additional items.
 
As a result of the departure, KPN has revised its management structure. Eelco Blok will now assume responsibility of KPN's international operations, as well as iBasis. Baptiest Coopmans will meanwhile run KPN's Dutch activities.
 

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