KPN raises FY outlook after rise in Q2 EBITDA

News General Netherlands 24 JUL 2019
KPN raises FY outlook after rise in Q2 EBITDA

Dutch operator KPN reported second-quarter revenues down 3.1 percent to EUR 1.359 billion, hurt by the continued decline in legacy services, mobile price pressure and lower equipment revenues. A reduction in costs led to a 3.6 percent increase in EBITDA to EUR 594 million for the period. 

Net profit fell 9.8 percent to EUR 128 million due to restructuring costs and a lower dividend after reducing its stake in Telefonica Deutschland. Free cash flow was lower, down 34 percent to EUR 147 million, after a 10 percent rise capex on FTTH investments. 

KPN increased its oulook for 2019 slightly. It now expects a slightly higher EBITDA, compared to an earlier forecast for a flat result, as well as capex of EUR 1.1 billion, lower free cash flow and a dividend of 12.5 cents per share. 

The outlook for 2019-2021 remains the same: organic EBITDA growth, flat capex, free cash flow growing around 5 percent per year with a similar rise in the dividend. This is supported by an expected EUR 350 million in cost savings by 2021, of which EUR 66 million was realised in H1 2019.

KPN Consumer: revenues -2.1%

KPN started to phase out its Telfort brand during the quarter. There was no impact in postpaid mobile, while the group lost broadband customers, leading to a higher ARPU.

The consumer broadband base fell by 31,000, TV customers were down by 21,000, and another 73,000 fixed telephony lines were lost. The total number of households served fell by 63,000 to 3.332 million. 

The number taking both fixed and mobile services rose by 14,000, taking the FMC offers to 48 percent of the broadband base. Other multi-play subscribers were down by 21,000, and single-play households reduced by 43,000. Household ARPU rose to EUR 46 from EUR 43 a year ago, and the number of Sims per FMC household increased to an average 1.59. 

In the mobile market, KPN gained 104,000 converged customers, while losing 105,000 mobile-only customers. The share of postpaid customers on FMC offers reached 62 percent. 

Overall, the number of consumer postpaid customers was unchanged in the quarter, while prepaid users fell by 83,000. Postpaid ARPU dropped to EUR 17, while prepaid rose to EUR 3. 

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General

Companies:

KPN,  Telefonica Deutschland

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Netherlands

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Financial figures

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