Royal KPN Q1 results in line with market forecasts

27 Apr 2010

Dutch telecoms operator Royal KPN (KPN) has posted first-quarter results in line with analyst expectations, noting too an improvement in all its international businesses which helped shore up the bottom line. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 7.2% year-on-year to EUR1.32 billion (USD1.7 billion), up from EUR1.23 billion previously, aided by the telco’s efforts to cut costs. The figures were in line with average analyst expectations in a Reuters poll. Commenting on the performance KPN’s chief executive officer Ad Scheepbouwer said that while the group continues to feel ‘topline pressure as a result of the economic conditions in the business markets and regulation,’ nonetheless there were some improvements – particularly in the German service revenue trend. KPN owns the country’s third largest mobile telephony provider, E-Plus, where revenues were up 1.8% y-o-y to EUR999 million and operating profits rose 4.3% to EUR384 million.

KPN posted first-quarter revenue of EUR3.28 billion, down 3.5% y-o-y, but maintained its FY2010 target of turnover of around EUR13.5 billion and EBITDA of EUR5.5 billion. Net income improved 41% between 1Q09 and 1Q10 to EUR448 million, mainly due to cost-cutting measures. KPN’s net debt as at 31 March 2010 was EUR1.4 billion.

Netherlands, KPN