Dutch-operator KPN's third-quarter sales rose 1.4 percent to EUR 3.378 billion while the EBITDA improved 5.9 percent to EUR 1.408 billion, and the net profit increased 2.8 percent to EUR 406 million from 395 million the year before. Excluding the disposals of SNT Belgium & Netherlands, the B2B and carrier business in Belgium and parts of Getronics, revenue was estimated up 2 percent. Capex in Q3 was at EUR 431 million, while free cash flow fell 18 percent to EUR 681 million. With a year-to-date EBITDA of EUR 232 million for the Group, KPN said it was on track to reach its EUR 5.5 billion target for the full year. KPN reiterated its outlook for 2010 and 2011, and said 2011 will provide the platform for the company to move forward under the leadership of Eelco Blok.
In the Netherlands, quarterly sales for all units rose 1.9 percent year-on-year to EUR 2.333 billion, with EBITDA up 3.4 percen to EUR 1.408 billion. The Dutch Telco business saw revenues slide 1.3 percent. At Getronics, sales fell 2.3 percent while at iBasis, revenue rose 38 percent. Getronics revenues showed an improving trend but economic conditions and competition remained challenging. Mobile International sales advanced 4.1 percent, boosted by revenue growth in Germany and the Rest of the World, and including a severe negative impact from MTR reductions in Belgium of EUR 11 million. EBITDA at Mobile International rose 11 percent, with all segments contributing.
Results came in above market expectations, except for the net profit which was negatively influenced by rising interest rates. Net debt remained stable at EUR 12.2 billion while the number of FTEs was reduced by 467, to 30,654 at the end of the quarter.
At KPN’s Consumer segment, revenues fell 2.7 percent as fixed services remained under pressure. EBITDA lifted 4.9 percent, reflecting continued cost reductions and customer base management. At Consumer Wireless, exclusing wholesale, revenues showed an improving trend although they fell 3.7 percent year-on-year, including a 3.3 percent regulatory effect. Postpaid adds amounted to 67,000, to reach a total of 3.2 million, boosted by a successful sales campaign during the quarter. Postpaid customers represented 55 percent of the customer base, from 47 percent the year before. Smartphone penetration among postpaid customers was at 40 percent. Meanwhile, the prepaid customer base declined by 298,000 as a result of the value focus and a clean-up at Hi’s customer base. KPN TV customers grew by 23 percent year-on-year to more than 1.1 million, resulting in a 14 percent market share. At the end of Q3, the operator had 32,000 FTTH activated homes, while net line loss remained at 35,000.
KPN’s Business segment continued to feel the effect of a challenging market, with revenues down 4.2 percent, impacted by decreased sales at Voice and Internet Wireline and Data Network Services, as well as one-offs totalling 11 million. EBITDA decreased 1.6 percent to EUR 189 million, offset by cost savings. Mobile operations saw service revenues fall 2.6 percent while data revenues remained stable. The number of data users made up 52 percent of the customer base, compared to 50 percent in Q2. Revenues from traditional services continued their downward trend while business DSL continued to grow and the migration from traditional to new services continued steadily, the company said.
