KPN under pressure at home, sells Getronics International

Tuesday 24 January 2012

Telecom company KPN is under market pressure, on Tuesday declaring a drop in profit to €1.55bn in 2011 compared with €1.8bn in 2010.

The former state-owned firm has been hit by competition from rival telecom firms as well as cable companies such as Ziggo and UPC and free communication sources like WhatsApp, Facebook and Twitter.

The company says its 2012 results will be between €4.7bn and €4.9bn, compared with €5.27bn in 2011. Cash flow is expected to fall to around €1.7bn from €2.45bn a year earlier.

CEO Eelco Blok said in a statement 2012 will be a year of transition for the company.

'Group profits and cash flow will be lower in 2012 while the Netherlands is in transition, which is reflected in the 2012 group outlook. Furthermore, the overall macro environment is unsettled,' Blok said.

Getronics

KPN also announced on Tuesday it is selling its Getronics International operations in two separate transactions. Financial details were not disclosed.

Getronics Europe and Apac are being sold to Arelieus AG, an industrial holding with a long-term investment horizon. KPN will retain a minority stake.

KPN has reached agreement with OpenGate Capital on the divestment of the Latin American operations.

© DutchNews.nl

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