KPN Q1 sales down 8%, EBITDA falls 22%

Nieuws Algemeen Nederland 25 APR 2014
KPN Q1 sales down 8%, EBITDA falls 22%
KPN announced first-quarter revenues down 8 percent to EUR 2.00 billion, hurt by price pressure and competition, especially on the mobile and business markets. EBITDA fell 22 percent from a year earlier to EUR 624 million, and net profit dropped 98 percent to EUR 3 million. Free cash flow at the Dutch operator was a negative EUR 292 million. 
Quarterly revenue and EBITDA KPN 2014 Q1
 KPN said it still expects results to stabilise towards the end of this year and maintained its full-year outlook. Capex is expected to be less than EUR 1.4 billion this year and below EUR 1.5 billion in 2015, including Reggefiber. Free cash flow should also grow from next year. The company is also confident it will complete the sale of E-Plus to Telefonica Deutschland, which should allow it to restore dividend payments. 

At KPN's Consumer Residential division, organic sales were down 1 percent in Q1, due to competition and the contracting telephony market. EBITDA rose 22 percent, thanks to job cuts and lower marketing spend. ARPU was also up 4.8 percent to EUR 44 due to more customers taking multi-play packages; 46 percent are now on triple-play and 235,000 use the quad-play package. In addition, KPN grew in the TV market in Q1, with the net addition of 62,000 customers. 

At Consumer Mobile, organic sales fell 10 percent, despite the addition of 26,000 new customers. Service revenues were down 12 percent, and EBITDA fell 60 percent. KPN said it had 610,000 customers using 4G. 

On the business market, the weak economy continued to weigh on sales, which fell 11 percent on an organic basis, and EBITDA dropped 25 percent. In addition to new tariffs an services, KPN is working on lowering costs. It also attracted 412,000 business customers for 4G. 


Categories:

Algemeen

Companies:

E-Plus,  KPN,  Reggefiber,  Telefonica Deutschland

Countries:

Nederland

Tags:

Voice services, Data services, Financial figures, Internet Access

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