* 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 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
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.