Dutch telecom company KPN Posts Q3 Net Loss
Dutch telecommunications company Royal KPN NV reported a net loss of €241 million in the third quarter, compared with net income of €267 million in the same period a year ago.
The company attributed the loss to weak business conditions, high investment costs, and an accounting charge, reports Gulf News.
KPN rejected a takeover bid by Mexican billionaire Carlos Slim this month.
According to the company, the loss was largely due to charges related to the proposed sale of KPN’s German unit E-Plus to Spain’s Telefonica SA for €8.55 billion. KPN took a net charge of €328 million on E-Plus after classifying it as a discontinued business. The deal is expected in mid-2014, pending approval from European regulators.
Operating profit, which excludes one-time charges as well as interest and tax, fell 38% to €281 million. The company cited weak demand from business customers and falling profits from mobile customers with smartphones.