Dutch telecom company KPN saw net profit drop 18% to €239 last year, on turnover down 5% at just over €8bn.

Falling revenues did stabilise in the fourth quarter although the company still reported a Q4 loss.

The business sector is proving the hardest nut for KPN to crack, as the knock-on effect of the economic crisis and subsequent rise in corporate bankruptcies continues to have an impact.

The company recently announced two reorganisations. One will reduce the workforce by up to 2,000 by the end of this year. The other involves the loss of 600 jobs in the business market division.

KPN also announced on Wednesday it wants to appoint former GroenLinks party leader Jolande Sap to its supervisory board. Her appointment is supported by the works council.

KPN chief executive Eelco Blok told Nos radio news he is not unhappy with the results. ‘Things are going well with KPN and are according to plan,’ he said. ‘We have more clients, we score well on customer satisfaction and the finances are improving slowly. In short, the trend is positive.’