KPN reported third-quarter revenues at EUR 3.05 billion, down 6.5 percent from a year earlier. EBITDA also fell 6.5 percent, to EUR 1.16 billion, while net profit was down 32 percent EUR 250 million, and earnings per share fell 35 percent to EUR 0.17. The results came in slightly below market expectations for revenues down 4.5 percent.
The operator attributed the decline in results to the sale of Getronics International, as well as the weak Dutch mobile market and pricing pressure in Germany. EBITDA also fell on the back of rising marketing costs in Germany, and the costs associated with connecting new FTTH and interactive TV customers.
Still, KPN maintained its outlook for 2012: EBITDA at EUR 4.7-4.9 billion, free cash flow at EUR 1.6-1.8 billion, capex at EUR 2.0-2.2 billion and a dividend of EUR 0.35 per share. For 2013, the company will seek to distribute a dividend of EUR 0.35 and complete its job reduction programme, scrapping a total of 4,000-5,000 jobs. The teller is currently at 1,300.
KPN’s net debt to EBITDA ratio deteriorated to 2.7 from 2.6 in Q2. The operator had earlier aimed for a ratio at 2.0-2.5, a figure it said it will keep as its target. KPN added however that the debt situation could persist for a few more quarters.
