KPN’s Q1 revenues drop 3.4%

27 Apr 2018

The Netherlands’ KPN reported a 3.4% year-on-year fall in total quarterly revenues to EUR1.402 billion (USD1.709 billion) in the three months ended 31 March 2018, as it said growth driven by bundled services in its Consumer and Business (particularly IT/Professional Services) divisions was offset by mobile pricing pressure, lower handset revenues and reduced wholesale international traffic. EBITDA grew 4.9% y-o-y to EUR555 million, ‘mainly driven by successful simplification and digitalisation of services’. Q1 operating profit (EBIT) climbed 17% to EUR208 million, and net profit jumped 35% compared to the year-ago period, to EUR98 million. CAPEX in the quarter was 11% lower than in 1Q17 (‘mainly due to intra-year phasing’).

In its Consumer division, KPN said that competitive pressure in the Dutch no-frills segment continued to impact its sub-brands Telfort and Simyo. Consequently, consumer post-paid mobile subscribers declined by 20,000 in Q1 2018 whilst post-paid ARPU fell 7.3% y-on-y to EUR18. KPN had 5.171 million consumer mobile customers at end-March 2018, down by 1.6% y-o-y (excluding subscribers to Full MVNO services hosted by the KPN network). Residential fixed voice customers declined by 6.2% to 2.441 million, while residential fixed broadband subscribers grew 2.3% to 2.950 million and consumer IPTV customers increased by 4.8% to 2.127 million. In addition, lower revenues from MVNOs due to competitive market dynamics led to lower mobile wholesale turnover.

KPN also highlighted that its IoT business grew its revenue by 40% y-o-y in Q1 2018, helped by demand for its ‘KPN Things’ integrated platform, and it added 1.2 million M2M SIMs in the year to 31 March for a total of 4.0 million. KPN also drew attention to its nationwide rollout of LTE-M IoT network connectivity, complementing its LoRa (unlicensed spectrum) IoT network and its existing cellular M2M services.

Netherlands, KPN, Simyo (Netherlands), Telfort