Tuesday, February 06, 2007

KPN RESULTS://New definitions used to hide worsening performance

Results 06Q4: somewhat weaker than expected. Even mobile is down. Net line loss, as concocted by KPN, is down to 130k for the quarter, but regular line loss (as defined previously by KPN) is up to 357k (from 267k the previous quarter)! Access lines (PSTN + ISDN) are down 9% qoq and 21% yoy!

Guidance 2007: weaker than expected. Revenue and EBITDA to be flat. Share buy-back EUR 1bn as expected. Dividend LOWERED to EUR 950m (from EUR 1bn over 2006). Free cashflow EUR 2bn v. EUR 2.4 bn in 2006.

All-IP Network: real estate value lowerd to EUR 1bn (from 1.0-1.5), capex 2007 lowered to 0.9bn (from 1.0-1.5).

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