KPN revenues slide 1.1% in 4Q18

30 Jan 2019

KPN of the Netherlands posted a 1.1% year-on-year fall in revenues in the fourth quarter of 2018 to EUR1.436 billion (USD1.641 billion) caused by lower turnover from mobile and traditional fixed line services, partly offset by growth in multi-play consumer bundling and integrated business services. Quarterly adjusted EBITDA improved by 1% y-o-y to EUR572 million in October-December 2018 on cost saving measures, whilst Q4 net profit was 10% higher than a year earlier at EUR62 million due to a one-off tax revaluation (EUR107 million) excluding which the company would have reported a EUR45 million quarterly net loss.

Consumer division revenue fell by 1.1% to EUR758 million in 4Q18 affected by declines in smartphone sales, fixed line and single-play services, but KPN highlighted ongoing positive trends in multi-play customer convergence, as the number of post-paid mobile subscribers taking a fixed KPN service continued to rise steadily – by 32,000 in the three-month period to a total of 2.065 million. The number of fixed-plus-mobile subscribing households increased by 18,000 to 1.343 million in the fourth quarter, reaching 46% of the KPN consumer broadband base, up from 42% a year earlier, while total monthly ARPU per household improved by 4.3% y-o-y to EUR46. In the B2B services division, Q4 turnover dropped 2.2% to EUR549 million on factors including decreases in single-play services, mobile pricing pressure and user migration to new/bundled services at lower prices. KPN’s wholesale segment revenue fell by 1.5% in Q4 on lower inbound roaming earnings.

Netherlands, KPN