KPN reported full-year results in line with expectations, with the impact of the coronavirus pandemic offset by the Dutch operator's cost savings programme, helping the company finish 2020 with a strong balance sheet and liquidity position.
Revenues for the fourth quarter slid 2.8 percent from the year before to EUR 1.354 billion, including all divestments, but the net profit more than doubled to EUR 174 million from 84 million. The adjusted EBITDA was meanwhile flat at EUR 561 million. Capex declined 10 percent to EUR 289 million, helping free cash flow jump 14 percent to USD 272 million.
For the full year, revenues fell 3.9 percent to EUR 5.275 billion and the net profit declined 8.7 percent to EUR 561 million. The adjusted EBITDA went 0.1 percent higher to EUR 2.320 billion. Investments for 2020 went almost 3 percent higher to EUR 1.147 billion. The free cash flow however dipped 2.5 percent lower to EUR 1.172 billion.
For 2021, KPN sees EBITDA up slightly to EUR 2.345 billion, with capex of EUR 1.200 billion. The free cash flow outlook has been raised to EUR 765 million. KPN expects to pay a final regular dividend of 8.7 cents per share.
Decline at fixed telephony
KPN added 1,000 postpaid customers in the quarter but on a year-on-year basis, the base decreased by 5,000. ARPU at EUR 17.00 was virtually unchanged from the year earlier and the previous quarter.
The largest decreases can be seen in the number of customers with a fixed telephone connection, with customer losses here at 28,000 for the quarter. The broadband customer base decreased by 3,000 customers on a sequential basis. The declines were greater year-on-year, with KPN losing 145,000 customers with a fixed telephone connection and 29,000 customers with a broadband connection. ARPU increased by 4 percent year-on-year to EUR 50.00 per month.
KPN had a total of 3.584 million postpaid mobile customers at the end of December, plus 3.091 million households with a fixed telephone line and 2.792 million households with a broadband connection.
Growth in FMC
There were positive developments in the field of fixed-mobile integration (FMC). The number of households with an FMC package grew by 22,000 compared to the third quarter and by 4,000 compared to year before. The number of mobile connections (SIMS) that are part of an FMC package grew in the quarter by 81,000 and in the year by 93,000.
About 1.406 million Dutch households subscribe to KPN 'Complete' and have an FMC package. In total, 2.347 million mobile connections are part of an FMC package.
