Telecom company KPN’s turnover went up by 1.6% to €3.7bn in the fourth quarter of 2008, the company announced on Tuesday. Operational profit (Ebitda) rose 5% to €1.3bn.
Over 2008 as a whole, net profit reached €1.3bn in 2008, half the 2007 figure, the company said in a statement. Excluding a one-off tax windfall, earnings were more or less unchanged. Full year turnover was up 16%.
CEO Ad Scheepbouwer says the company has not suffered a ‘material impact’ from the economic downturn and is not expected to do so in 2010. KPN has strengthened its competitive position in the Netherlands, Germany and Belgium. Mobile and broad band services in particular were on the up, the company said.
Nevertheless, KPN has been cutting costs to head off the crisis. It is lowering freelance tariffs and hiring less external staff while IT services company Getronics has stopped recruiting entirely for the moment.
KPN has not entirely escaped the financial market’s turbulence. Its pension funds ratios are down to 94% and the company will have to come up with €120m to cover the loss.
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