KPN upbeat despite poor results

10 May 2005

Dutch telco KPN has seen first-quarter operating revenues fall 1% and operating profit drop 23.6%, although there was good news in the shape of continued rises in the company’s broadband and mobile market shares. Revenue for the three months to the end of March stood at EUR2.89 billion, down from EUR2.94 billion in the same period last year, with the fall blamed on tariff reductions. Operating profits dropped from EUR675 million to EUR516 million thanks to KPN’s continuing investment in infrastructure rollouts and UMTS amortisation costs. Net profit for the quarter slumped 34% to EUR273 million.

KPN’s CEO, Ad Scheepbouwer, gave an upbeat statement, saying the telco had met its key objectives of increasing its market share in the mobile and broadband sectors. It added 119,000 ADSL customers in the Netherlands during the first quarter, taking its total broadband customer base to 1.5 million and its market share to 44.3% by the end of March. The German mobile operator E-Plus added 140,000 new subscribers to end the period with 9.65 million users, while KPN’s domestic wireless unit increased its customer base by 213,000 to 6.29 million. The Belgian mobile subsidiary BASE saw customer numbers increase from 1.65 million to 1.76 million.

Netherlands, KPN