KPN reports rise in profit in Q4
www.WirelessFederation.com/news: The net income of Dutch telecoms group KPN rose from EUR296 million to EUR1.08 billion in the fourth quarter that ended on December 31, 2009. EUR705 million tax credit at its German mobile telephony arm E-Plus is also recorded in the figure.
However, 6.9% drop from EUR3.62 billion to EUR3.37 billion has been recorded in group revenue and other income from existing operations, excluding disposed operations at Getronics. A revenue loss of 9.3% has also been reported by the company.
KPN also cut 10% of its workforce and outsourced 3,554 jobs in the past year which was 33,148 at year-end. The firm is contemplating to cut or outsource an additional 2,000 jobs in 2010.
KPN bids EUR 766 million for Getronics
Dutch telecoms operator KPN has bid EUR 766 million to acquire ICT services provider Getronics. KPN is offering EUR 6.25 per share cash for Getronics, a 23 percent premium on its closing share price on 27 July. The merger will create a dominant player in the Dutch ICT market, where KPN has already been expanding in recent years through smaller acquisitions of corporate IT providers. KPN said it plans to continue Getronics strategy, focusing on the Dutch, Belgian, UK and North American markets as well as global services delivery. The deal is expected to generate synergies of at least EUR 50 million per year from 2009, led by cross-selling to each other’s customer base and expanding in the SME sector through KPN’s sales force. The Getronics brand name will be maintained, while KPN may divest some of the company’s non-core activities and a limited number of staff cuts are expected. KPN will also benefit from some EUR 100 million tax carry-forward assets from Getronics. KPN will also bid for Getronics’ some EUR 256 million in convertible debt and preferred shares. Getronics’ management supports the offer. Over the last 12 months, Getronics reported revenue and EBITAE of EUR 2.247 billion and EUR 60.5 million respectively for continuing operations.
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