KPN’s net profit up 18% y-o-y to EUR191m in 2Q17

26 Jul 2017

Dutch telco KPN has published its financial results for the three months ended 30 June 2017, reporting a 3.2% annual decrease in its adjusted revenues to EUR1.623 billion (USD1.9 billion), down from EUR1.676 billion in Q2 2016. The company attributed the development to lower revenues generated by its Business and Wholesale units (down 5.9% and 7.6% year-on-year, respectively), offset by a 2.1% annual growth in its Consumer division. The downward trend in Business sales was caused by ‘migrations and rationalisations’ coupled with price pressures in the mobile sector, while Wholesale saw lower revenues from MVNOs and international traffic. Adjusted EBITDA for 2Q17 increased by 1.5%, from EUR592 million in 2Q16 to EUR601 million, while net profit for the year under review increased 18% y-o-y, from EUR162 million to EUR191 million. Annual CAPEX plummeted from EUR312 million in 2Q16 to EUR238 million twelve months later, mainly due to ‘different intrayear phasing’ compared to the previous year.

In operational terms, KPN reported a total of 5.253 million ‘Consumer Mobile’ customers at end-June 2017, up 0.5% from 5.226 million at mid-2016. The firm’s total number of ‘Consumer Residential Households’ stood at 3.572 million at the end of Q2 2017, down from 3.620 million a year earlier. Further, KPN said that its recently acquired unit Solcon, which provides residential and B2B internet, fixed/mobile telephony, TV and data centre/hosting services to approximately 45,000 retail customers in the Netherlands, will be consolidated in Q3 2017; KPN agreed to purchase the company last month.

Netherlands, KPN