KPN 2Q15 revenues down 5.1%, impacted by challenging business market

29 Jul 2015

Dutch incumbent KPN has reported revenues of EUR1.741 billion (USD1.926 billion) for the quarter ended 30 June 2015, down 5.1% year-on-year from EUR1.835 billion, with ‘stable’ consumer revenues offset by the ongoing decline in the business market. EBITDA fell 45% in the same period to EUR568 million, due in part to declining revenues in the business segment. Adjusted EBITDA, however, increased 1.5% to EUR602 million, driven by growth in the telco’s customer base and the positive impact of cost savings. Net profit slumped 55% on an annualised basis, due to the ‘one-off impact release of pension provision’ in Q2 2014; as such, KPN’s bottom line fell from EUR352 million to EUR160 million. Meanwhile, KPN reported CAPEX of EUR306 million for 2Q15, up from EUR275 million one year earlier.

In operational terms, KPN’s consumer residential broadband base increased by 4.1% y-o-y to reach 2.840 million, while growing by 31,000 subscriptions quarter-on-quarter. Further, fibre-to-the-home (FTTH) connections increased from 512,000 to 647,000 y-o-y. Consumer mobile subscriptions increased 3.7% y-o-y, from 7.300 million to 7.568 million, although the user base declined on a quarterly basis. Meanwhile, 4G subscriptions soared over the twelve month period, from 845,000 to 2.144 million. Elsewhere, KPN’s business unit was hit the hardest, with corporate DSL subscriptions dropping 18% from 192,000 to 158,000, and voice connections falling 19% to 685,000.

KPN CEO Eelco Blok commented: ‘We are witnessing good results in our Consumer segments with service revenue inflection in Consumer Mobile and increasing fixed-mobile penetration, but are not yet there in our Business segment. In a rapidly changing market, we are transforming the Business segment by simplifying our products, adjusting our cost base and pursuing selected growth opportunities.’

Netherlands, KPN