KPN Q2 revenues fall 1.7% on regulatory factors

26 Jul 2018

Dutch fixed and mobile operator KPN posted a 1.7% year-on-year drop in total revenues to EUR1.402 billion (USD1.640 billion) in the three months ending 30 June 2018, which it attributed to the effects of regulation. Excluding regulatory factors, KPN said that adjusted revenues grew 0.5% y-o-y on higher consumer ARPU per household and growth in its Professional Services/IT business segments, partly offset by continued price pressure in mobile and lower wholesale revenue. Operating profit (EBIT) and EBITDA climbed 6.3% and 1.0% y-o-y in Q2 2018 to EUR210 million and EUR555 million respectively. Quarterly CAPEX was 4.1% higher than 2Q17, at EUR245 million. Three-month net profit declined 15% y-o-y to EUR137 million, mainly due to lower dividend received from KPN’s minority stake in Telefonica Deutschland.

In 2Q18 mobile service revenues declined 6.2% y-o-y, mainly due to regulation and lower ARPU as a result of ongoing price pressure (with post-paid ARPU declining 7.3% y-o-y to EUR18). KPN continues to focus on retention of high value post-paid customers, and the main KPN brand’s post-paid customer base was virtually flat in Q2, while the customer base of no-frills brands Telfort and Simyo declined by 10,000 in the quarter.

Netherlands, KPN, Simyo (Netherlands), Telfort