KPN sales decline 3% but profit doubles; prepares for Gigabit fibre in March

29 Jan 2020

The Netherlands’ KPN reported that its adjusted revenues declined by 3.0% year-on-year in Q4 2019 to EUR1.393 billion (USD1.534 billion) as growth in consumer bundled fixed/mobile services and B2B IT/integrated services was offset by lower revenues from legacy fixed line services and continued competitive/price pressure in the mobile market. FY 2019 adjusted revenues decreased by 2.7% y-o-y to EUR5.486 billion. Q4 adjusted EBITDA declined by 1.6% y-o-y to EUR561 million and FY19 adjusted EBITDA increased by 1.2% to EUR2.317 billion. Net profit reached EUR84 million in 4Q19 (including EUR29 million profit booked from the sale of KPN’s International Network Services unit and Argeweb in the quarter), compared to a 4Q18 net loss of EUR47 million, while annual net profit more than doubled to EUR614 million.

Giving an update on its broadband infrastructure rollouts, KPN reported adding 50,000 fibre homes passed in Q4, raising the total of additional homes passed to 120,000 in 2019, noting that it will accelerate the programme to reach a target of one million additional fibre-to-the-home (FTTH) passes by the end of 2021. FTTH construction, ‘or advanced preparation thereof’, has begun in more than 70 areas to achieve this goal, using GPON technology. It also confirmed that it will launch a commercial 1Gbps FTTH service in March 2020. KPN is also close to completing a fibre-to-the-cabinet (FTTC) rollout, having made faster VDSL services technically available at approximately 1,500 additional street cabinets and 390,000 additional homes during 2019, which once commercially ready will enable significantly improved access speeds for customers.

KPN also made significant progress towards its goal of becoming an all-IP network operator by the end of 2021. Approximately 175,000 fixed lines were yet to be migrated to IP by end-2019 (end-2018: 775,000), while migration to emulated telephony services was finished in Q4 2019 as a further step towards phasing out the legacy SDH/TDM network.

Netherlands, KPN