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Dutch incumbent’s updated strategic plan targets consumer revenue growth, stabilising enterprise revenues.
KPN on Monday revealed it aims to save €300 million per year by 2019 under an updated strategic plan covering the next three-to-five years.
Called "Simplify – Grow – Innovate", the strategy aims to drive further growth in the Dutch incumbent’s consumer revenues and customer satisfaction, and improve profitability and stabilise revenues at its struggling enterprise division. KPN has also pledged to expand fibre penetration.
"The coming years will see relentless growth of connected devices and surging data traffic. To stay ahead, we are evolving our strategy to the next level," said KPN chief executive Eelco Blok, in a statement.
"We will deliver a second wave of major business simplification, expand the capacity of our fully integrated network, and keep innovating to drive new products and give an excellent customer experience to all our customers at home, on the move and at work," he said.
Under its current strategic plan, KPN is on target to generate annual savings of €450 million by the end of this year, compared to the end of 2013.
Under the new plan, which becomes effective next year, KPN aims to generate annual savings of €300 million by the end of 2019. The savings will be made primarily through the simplification and rationalisation of IT processes and systems, and network infrastructure.
"Based on this strategy, we will maximize value for our shareholders and all other stakeholders while maintaining a solid financial profile," Blok said.
