(Adds more results figures, CEO comments)
By Toby Sterling
AMSTERDAM, Feb 3 (Reuters) - KPN, the Netherlands'largest telecommunications company, reported aworse-than-expected drop in fourth-quarter earnings onWednesday, and forecast stabilised earnings for 2016.
The company said it expected adjusted earnings beforeinterest, taxes, depreciation and amortization (EBITDA) in 2016would be in line with 2015 after years of sliding profits ascustomer switched to cheaper internet-based voice services.
It reported fourth-quarter EBITDA of 582 million euros ($636million), down 7.6 percent from 630 million euros in the sameperiod a year earlier.
Analysts polled by Thomson Reuters had expected adjustedEBITDA of 596 million euros. KPN noted the 2015 figures nolonger include a 44 million euro tax benefit that has beendiscontinued under Dutch law.
KPN's business customers have been reducingtelecommunications spending, while prices for mobile telephonyon the Dutch market have been under pressure. Those trends areslowing and their impact on earnings is increasingly offset bystrong growth in mobile data subscriptions and KPN'scost-cutting efforts.
"We continue to operate in a challenging business marketwhere customer needs are changing from traditional to newservices," Chief Executive Eelco Blok said in a statement.
He said growth in new service offerings would supportprofitability in the business segment.
For 2016, a top priority would be growing revenue fromhouseholds, where KPN competes with cable operator Liberty inoffering internet and television.
KPN plans 1.2 billion euros in capital spending in 2016, asit tries to build out its fibre optic network to reach 80percent of Dutch households by year end.($1 = 0.9157 euros) (Editing by Susan Thomas)
Vodafone (VOD)
