The Dutch operator said it was satisfied with the results, with customers growing on the mobile market and more bundled services delivered to businesses. Customer satisfaction also appears to be improving, following the simplification of the group's service range.
KPN left its outlook unchanged, for growth in free cash flow next year, thanks to lower interest charges and taxes. The company also targets a higher dividend next year, compared to this year's 7 cents per share. For the rest of this year, KPN targets a stabilisation in results. Capex is expected to reach EUR 1.4 billion in 2014 and EUR 1.5 billion next year.
KPN said it plans to use part of the EUR 5 billion received from the sale of E-Plus to pay off EUR 2 billion in outstanding bonds. It will also increase its stake in Reggefiber and contribute EUR 200 million to its pension fund. At the end of September, net debt totaled 2.3 times EBITDA.
The Consumer Residential posted Q3 sales down 2.5 percent, while EBITDA rose 1.9 percent due to lower costs. KPN added 6,000 broadband customers and 49,000 IPTV subscribers in the period. ARPU increased 2.3 percent to EUR 44 per month. The share of triple-play customers rose to 48 percent of broadband subscribers.
Consumer Mobile recorded 5.6 percent lower sales, including a 6.9 percent drop in service revenue. EBITDA fell by 53 percent, in part due to extra costs for ending the handset lease model and acquiring new customers. The division won 84,000 postpaid customers in the quarter.
KPN Business posted revenues down 7.0 percent, and EBITDA fell 16 percent from a year ago. KPN plans further cost reductions at the division, with a reduction of 400-500 jobs over the full year.
