KPN reports ‘robust’ Q2 financials despite COVID-19 pressure

27 Jul 2020

Dutch fixed and mobile operator KPN reported what it called ‘robust’ financial performance for Q2 2020 amidst a challenging COVID-19 environment. Adjusted revenues declined 3.0% year-on-year (corrected for impact of divestments, down 4.9% y-o-y without adjustment) to EUR1.292 billion (USD1.506 billion) in April-June 2020 on lower revenues from mobile (particularly roaming) and fixed voice services, partly offset by growth in B2B ‘Professional Services’ and Wholesale turnover. Adjusted EBITDA after leases was effectively flat in 2Q20, up 0.1% y-o-y corrected for impact of divestments (down 1.5% y-o-y otherwise) to EUR585 million, as KPN said the effect of lower revenues was offset by ‘strong and disciplined cost control’. The estimated net negative effect of COVID-19 on Q2 2020 adjusted EBITDA was around EUR3 million-EUR5 million. Q2 2020 net profit of EUR135 million was EUR7 million higher y-o-y, mainly driven by lower restructuring costs and a EUR11 million book gain on the sale of KPN Consulting, alongside lower finance costs due to debt redemptions. CAPEX of EUR295 million in 2Q20 increased by 9.3% y-o-y, influenced by accelerated fibre-to-the-home (FTTH) rollout and mobile network modernisation including 5G deployments.

Netherlands, KPN