Consumer mobile drives EBITDA growth for KPN

27 Oct 2015

Dutch telecoms group Royal KPN has reported a 4.6% year-on-year rise in adjusted EBITDA for the third quarter to 30 September 2015, to EUR640 million (USD707 million), although sales dropped 2.6% to EUR1.76 billion. While the firm’s consumer mobile unit saw revenues grow 6.2% y-o-y to EUR376 million, the enterprise division registered a 7.2% fall in sales to EUR655 million. CAPEX for the year rose 22% to EUR305 million, and net income swung from a loss of EUR75 million in 3Q14 to a EUR87 million profit in July-September 2015. KPN says the growth in EBITDA could be attributed to customer base growth and the positive impact of cost savings.

At the end of September KPN claimed 7.68 million consumer mobile subscribers – an increase of 111,000 in three months – plus 1.79 million business mobile users, which was unchanged quarter-on-quarter. The fixed line division had 2.67 million residential voice access lines in service and 745,000 business lines, with 3.03 million broadband customers. Earlier this year KPN agreed the sale of its Belgian unit BASE to Liberty Global’s local subsidiary Telenet, though the deal is still awaiting regulatory clearance.

KPN’s CEO, Eelco Blok, commented: ‘In Consumer, the inflection in financial performance is being driven by continued customer base growth as a result of our differentiated competitive position via fixed-mobile bundling. In Business, we are operating in a rapidly changing environment with traditional services declining. We are transforming the Business organisation to increase customer satisfaction, benefit from new services and support profitability going forward.’

Netherlands, KPN