KPN announces 2014 and 2015 telecom Capex plan

European telecom carrier KPN on Friday announced its Capex (capital spending) plans for 2014 and 2015.

KPN Capex would be around $1.9 billion (EUR 1.4 billion) in 2014 and $2.1 billion (EUR 1.5 billion) in 2015. The 2015 Capex plan would include its investment for Reggerfiber as well. This indicates that KPN is not looking at aggressive Capex plans for both 2014 and 2015. In 2013, Capex of KPN was EUR 1.6 billion.

The telecoms is also expecting significant savings – Capex and Opex – from its Simplification program.

The European telecom operator has already achieved nationwide 4G coverage in the first quarter of 2014 the Netherlands. KPN 4G mobile subscriber base stands at 1 million in the Netherlands.

KPN Capex

“We expect lower mobile network investments forward. KPN’s simplification program will start to support Capex reduction from the second half of 2014. Together this Capex reductions, we also expect significant Opex savings from the simplification program,” said Eelco Blok, CEO, KPN.

KPN’s financial performance is not in line with the company’s plans and promises. Q1 2014 revenue decreased 8.2 percent to EUR 1,996 million due to competition and price pressure in all mobile markets. EBITDA dipped 21 percent due to lower sales and the phasing out of handset lease at KPN and Hi brands. Profit nosedived 98 percent to EUR 3 million from EUR 152 million.

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