By RTT News, October 22, 2013, 06:42:00 AM EDT
(RTTNews.com) - Dutch telecommunication firm Royal KPN NV (KPN, KKPNY.PK, KKPNF.PK), that recently rejected a planned $9.6 billion takeover offer from Mexican telecom giant America Movil S.A.B. De C.V. (AMX, AMOV), controlled by Mexican billionaire Carlos Slim, Tuesday reported a loss for its third quarter compared to a profit last year, reflecting lower revenues and impairment charges related to its German unit E-Plus.
It was on July 23, that KPN announced the sale of its German mobile telecommunications business E-Plus to TelefÃ³nica Deutschland Holding AG., a unit of Spanish telecommunication group TelefÃ³nica S.A. (TEF, TDE.L). On October 2, the shareholders of KPN approved the transaction.
Following completion of the deal, which is subject to regulatory approval, KPN will receive 5 billion euros in cash and a 20.5 percent stake in TelefÃ³nica Deutschland.
Further, subject to closing of the E-Plus sale, the firm intends to recommence dividend payments again for the year 2014.
Commenting on the future, KPN said it has adjusted the outlook to reflect its new Group profile, excluding E-Plus, and lowered its Capex forecast for the continuing operations. Driven by good operational performance and stable market shares, the group said it is on track to realize the outlook.
For the third quarter, the company posted net loss attributable to equity holders of 243 million euros or 0.09 euros per share, compared to a profit of 267 million euros or 0.12 euros per share in the previous year. The firm said it has restated its prior-year figures.
Earnings per share from continuing operations were 0.01 euros, lower than 0.09 euros per share a year ago. The company has classified E-Plus as a discontinued operation.
Operating profit fell to 281 million euros from 456 million euros a year ago.
During the period, Group EBITDA from continuing operations totaled 743 million euros, down 14 percent year-over-year, as a result of declining revenues and a change in handset propositions at the KPN and Hi brands.
Revenues and other income dropped 7.6 percent to 2.08 billion euros from 2.25 billion euros a year before, hurt by lower revenues at Business, Consumer Mobile and NetCo, partly offset by increasing revenues at Consumer Residential.
Revenues from the Netherlands fell 6.4 percent to 1.66 billion euros.
Eelco Blok, CEO of the company said, "As expected, market conditions remained challenging in the third quarter. Nevertheless, our businesses in the Netherlands and Belgium are showing positive operational momentum."
In Amsterdam, KPN shares are currently trading at 2.28 euros, up 2.02 percent.
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