KPN sells off IS&P to trim debt

19 Mar 2013

Dutch carrier KPN Telecom (or Royal KPN as it is also known) is to sell off its infrastructure unit IS&P to domestic engineering firm SPIE Nederland, as part of ongoing efforts to trim its high level of debt. No financial details of the deal have been disclosed, although IS&P employs around 600 staff and reported revenues of EUR100 million (USD129.6 million) in full year 2012. It is not the first time that the Dutch carrier has offloaded assets to reduce debt. TeleGeography’s GlobalComms Database reports that in November 2012 KPN entered into an agreement with American Tower Corporation for the sale of some of its mobile phone towers in Germany for a cash consideration of EUR393 million, resulting in an expected book gain of around EUR100 million.

KPN reported a 3% fall in revenues for the fourth quarter of 2012 to EUR3.27 billion, impacted by the economic slowdown and fierce competition in its home market, and immediately confirmed plans to raise EUR4 billion through a rights issue to trim debt that reached EUR12 billion at the end of last year. KPN Telecom booked full-year revenue of EUR12.71 billion in 2012, down 3.5% on the EUR13.16 billion figure reported a year earlier. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at EUR4.53 billion for FY2012, down 12% on the EUR5.14 billion reported in FY2011, while fourth-quarter EBITDA slumped 15% to EUR1.12 billion. EBITDA margin for the full year was 35.6%, down from 39.0% in 2011, while the fourth-quarter margin slipped five percentage points on an annualised basis.

Netherlands,KPN,

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