UPDATE 2-KPN to cut more jobs as mobile revenue slides
* Q4 core profit 614 mln euros vs 652 mln expected
* Dutch mobile revenues fall by 13 pct after 9.6 pct Q3 drop
* To pay dividend of 0.07 euros per share in 2014
* To cut additional jobs in the Netherlands
* Shares fall as much as 5.7 percent
By Robert-Jan Bartunek
BRUSSELS, Feb 4 (Reuters) - Dutch telecoms group KPN will cut up to a further 2,000 jobs after frugal consumers and stiff competition drove down quarterly revenues in its mobile division, causing profits to miss expectations.
Shares in the group, which in 2013 fended off a takeover bid by top shareholder Carlos Slim's America Movil, fell as much as 5.7 percent in early Tuesday trading after it said fourth-quarter mobile revenues fell 13 percent year-on-year.
That was steeper than a 9.6 percent decline the previous quarter, and in part reflected consumers sticking to monthly subscription allowances, rather than paying for additional services.
KPN said its business division also saw a fall in revenues accelerate from the third quarter, as companies made fewer phone calls and a sluggish economy resulted in fewer new contracts.
To improve margins in a climate of falling revenues, KPN said it would cut 1,500 to 2,000 more jobs in the Netherlands, having already axed 4,650 positions in the country since 2011. KPN had just over 26,000 staff in total at the end of 2012.
"The mobile division and the business division are bad points and the consensus has to come down for that, but the announcement of further cost savings is a positive," said Marc Hesselink, analyst at ABN Amro in Amsterdam.
The Dutch mobile market has been tough for KPN, as traditional revenue streams from texts and calls dried up, with users switching to internet applications instead.
However, KPN Chief Executive Eelco Blok told reporters he believed that margins in the mobile business would pick up over the course of 2014.
The group's Belgian operations also saw a fall in revenues in the quarter, albeit less pronounced than in the Netherlands.
Overall, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 30 percent in the fourth quarter to 614 million euros ($830 million), below the 652 million expected in a Reuters poll of seven analysts.
KPN has fared better in its residential business, where it offers broadband internet, TV and fixed telephone services and competes with cable operators such as Ziggo and UPC , as it increasingly managed to sell more than one service to its clients with a bundled offer.
Revenues in this business segment increased by 2.5 percent, with core profit rising by 16 percent.
The group said it expected to resume dividend payments of 0.07 euros per share in 2014, subject to the completion of the sale of its German unit E-Plus to Spain's Telefonica.
KPN said in October it would spend 4.7 billion euros on its networks between 2013 and 2015, though it did not repeat this target on Tuesday.
At 0820 GMT, KPN shares were down 2.3 percent at 2.63 euros.
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