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KPNQuest loss widens
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January 24, 2001: 6:47 a.m. ET
Internet access provider posts loss as it rolls out high-speed data network
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LONDON (CNNfn) - KPNQwest, a corporate internet access provider, said Wednesday its fourth-quarter loss widened as it rolls out a high-speed data network.
The company said its loss in the three months to Dec. 31 increased to  56.8 million ($53.3 million), or 0.13 a share, from 29.5 million, or 0.07 a share, a year earlier. Revenue soared 78.4 percent to 144.5 million.
The joint venture between Dutch telecom operator KPN and U.S. long distance telecom company Qwest Communications (Q: Research, Estimates) is laying more than 20,000 kms of cable to connect more than 50 cities across Europe to a high speed data network.
"KPNQuest reported a strong set of fourth quarter numbers... with revenue coming in at 144.5 million against our expectations of 142.8 million and a consensus forecast of 143 million," Saeed Baradar, an analyst at Bear Stearns, wrote in a note to investors.
Baradar, who suggests investors snap up stock in KPNQuest, said the company's EBITDA, or earnings before interest, taxes, depreciation and amortization – a measure of financial performance of companies that are heavily in debt – is "moving in the right direction to break even in the fourth quarter of 2001."
Its EBITDA loss came in at 32.9 million, "slightly better than our forecast of 33.7 million loss," Baradar said.
KPNQuest is one of the largest Internet service providers in Europe with operations in 15 countries. The company operates 13 CyberCentres, which host websites, applications and phone services for companies such as Nokia, the world's biggest mobile phone maker, and Dell Computer (DELL: Research, Estimates).
Shares in KPNQuest jumped 7 percent to 30.75 in early Amsterdam trade. 
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