KPN Executive: E-Plus Revamp Costs To Be Met Within 18 Months

AMSTERDAM -(Dow Jones)- Dutch telecom operator KPN expects the costs of recently announced restructuring measures at its German unit E-plus to be met within 18 months, E-Plus Chief Executive Michael Krammer Monday said at an analyst meeting in Dusseldorf, Germany.

"We expect a payback of these measures in a period of 12 to 18 months," Krammer said.

On Thursday, KPN announced restructuring measures at E-Plus in a bid to become the price and cost leader in Germany. The company aims for a headcount reduction of 300 employees.

At the same time, KPN will hire around 350 new staff to deal directly with customers.

Krammer declined to comment on the cost of the restructuring plans.

He repeated the other financial targets for E-Plus - for a double-digit growth in services revenue, and a margin of earnings before interest, taxes, deprecation and amortization of at least 30%.

In the second quarter, E-Plus had a market share in Germany of 11.9%. Deutsche Telekom unit T-Mobile is the mobile telecom market leader in Germany, followed by Vodafone Group.

-By Mathijs Schiffers, Dow Jones Newswires; +31-20-5890270; mathijs.schiffers@dowjones.com

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Posted to the site on 25th September 2006