KPN Q3 revenues fall 2.6%, profits still higher

Nieuws Algemeen Nederland 27 OCT 2015
KPN Q3 revenues fall 2.6%, profits still higher
KPN announced customer gains in the consumer market in the third quarter, but weakness in the business market pushed group revenues 2.6 percent lower to EUR 1.76 billion. The ongoing cost reductions at the Dutch operator led to a 4.6 percent rise in adjusted EBITDA to EUR 640 million. Operating profit was up 5.7 percent to EUR 204 million, and the net result moved to a profit of EUR 87 million versus a loss of EUR 75 million a year ago. Capital expenditure increased 22 percent to EUR 305 million, while free cash flow was down 9.0 percent to EUR 213 million. 
KPN quarterly revenues and EBITDA (Q3 2013 - Q3 2015)
 

KPN maintained its outlook for 2005, for EBITDA at a similar level to 2014, capex under EUR 1.3 billion and free cash flow over EUR 500 million, excluding the dividend from its stake in Telefonica Deutschland. KPN plans a dividend for this year of 8 cents a share and a higher amount in 2016. 

At the Consumer Residential division, KPN won 55,000 IPTV customers, 33,000 broadband subscribers and 50,000 triple-play users in Q3. Triple-play penetration rose to 55 percent of broadband customers, from 48 percent a year ago. Customers on the KPN Compleet offer of fixed and mobile services increased to 669,000, equal to 23 percent of broadband customers versus 14 percent a year ago. KPN said it also increased the availability of 100 Mbps broadband to 61 percent of households. 

In Consumer Mobile, the operator added 80,000 postpaid customers in the quarter. Almost 1 million mobile customers, or 28 percent of the postpaid base were also taking fixed services from KPN at the end of the quarter. The average speed of the mobile network also increased over the past year, to 36 Mbps from 20. 

KPN said the Business division was on track with its transformation plans to take account of falling demand for traditional telecom services. Th operator gained 2,000 business mobile customers in the quarter, as well as 41,000 new multi-play subscribers, taking this to 19 percent of the mobile base. 


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