KPN Issues Earnings Warning

Dutch telecommunications company Koninklijke KPN NV expects results for the year 2000 to be significantly lower than predicted. In a press conference broadcast over the Internet Wednesday, KPN Chief Financial Officer Maarten Henderson said revenue could be "several hundred million euros" less than the figure of 3.6 billion euros (US$3.22 billion) predicted earlier this year.

He attributed the shortfall in large part to the high cost of expanding KPN's market share in Germany, where the company acquired a majority stake in wireless operator E-Plus GmbH in a cash-and-stock deal worth 19 billion euros on February 24. E-Plus was awarded a German UMTS (Universal Mobile Telecommunications System) license in an auction ending August 17, for a fee of 8.4 billion euros.

Henderson made his comments as KPN rolled out financial results for the first half of 2000. Net loss for the period amounted to 19 million euros, as compared to a net profit of 416 million euros for the first half of 1999.

Revenue was at 1.76 billion euros, an increase of 17 percent over the figure of 1.5 billion euros for the first half of 1999.

Earnings per diluted share were zero for the first half of 2000, down from 0.44 euros per share in the same period last year.

KPN, in The Hague, Netherlands, can be reached at +31-70-332-39-86, or on the Web at http://www.kpn.com/.

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