KPN reported first quarter results showing revenues down 3.9 percent to EUR 1.92 billion and an adjusted EBITDA up 0.2 percent to EUR 622 million. The net profit reached EUR 15 million from 3 million the year before, while capex went to EUR 357 million, pushing free cash flow to EUR 34 million.
The operator attributed the lower revenues to a weaker business market. The higher EBITDA figure came from cost savings. CEO Eelco Blok said the quarter showed a strong operational performance, with Consumer Mobile customer numbers rising on the back of new data bundles.
Excluding Base, which will go to Telenet from the second quarter, KPN is guiding for full year 2015 capex of EUR 1.3 billion, with a stable adjusted EBITDA by year end, growing free cash flow and additional cash flow via a potential divident from the operators 20.5 percent stake in Telefonica Deutschland.
Consumer Residential added 35,000 net customers in the quarter, with digital TV adding 77,000 and triple play 86,000. Triple play penetration reached 52 of all customers and 19 percent of broadband customers.
Consumer Mobile added 59,000 new customers. Of all customers in the division, 24 percent also subscribe to fixed services.
Business is still facing a challenging market. The total size of the business market is still decline as a result of customer rationalisation and optimisation. The division still added 61,000 mobile customers, although 60,000 came from the acquisition of MVNO Mobile Service. KPN plans to simplify the organisation of the division and of its portfolio this year.
