KPN looking to save an extra EUR300m a year by 2019

8 Mar 2016

Dutch telco KPN has announced plans to reduce its OPEX and CAPEX by a further EUR300 million (USD329 million) a year by 2019, having already revealed that it is on track to make savings of EUR450 million annually by the end of 2016 compared to end-2013 under its existing 2013-16 ‘Simplification’ programme. The latest announcement covers KPN’s cost-cutting plans for 2017-19, with the additional savings to primarily be realised through ‘further simplification and rationalisation of back-end IT processes and systems, and network infrastructure’. The telco expects its adjusted EBITDA margin for the Netherlands to increase by at least three percentage points in the medium term, compared to 2015.

KPN CEO Eelco Blok commented: ‘To stay ahead, we are evolving our strategy to the next level which we call Simplify – Grow – Innovate. We will deliver a second wave of major business simplification, expand the capacity of our fully integrated network, and keep innovating to drive new products and give an excellent customer experience to all our customers at home, on the move and at work. Based on this strategy, we will maximise value for our shareholders and all other stakeholders, while maintaining a solid financial profile.’



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