KPN’s Q3 results slightly better than expected

26 Oct 2010

KPN, the former monopoly fixed and mobile operator in the Netherlands, today reported better-than-expected third-quarter financial results driven by higher service revenue growth at its German unit and strong margins, reports Reuters. The group’s quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) rose 5.9% year-on-year to EUR1.41 billion (USD1.98 billion) on cost-cutting, whilst consolidated revenues in the three months to the end of September 2010 reached EUR3.38 billion, up 1.4% from a year earlier. A Reuters poll of 16 analysts had forecast EBITDA of EUR1.37 billion, whilst near-flat sales of EUR3.3 billion had been expected. The Dutch group maintained its full-year guidance for 2010 core profit of EUR5.5 billion. Outgoing CEO Ad Scheepbouwer said in a statement: ‘KPN made good progress across the group in the third quarter. Mobile International delivered continued profitable growth, especially with Germany delivering higher service revenue growth and a strong margin.’ He added that the group saw no reason to adjust its outlook for 2011.

Netherlands, KPN