KPN posts hike in Q2 profits attributed to Glaspoort venture

27 Jul 2021

Dutch quadruple-play network operator KPN has reported revenues for the quarter ended 30 June 2021 of EUR1.30 billion (USD1.53 billion), inching up by 0.2% year-on-year from EUR1.29 billion in 2Q20. Service revenues fell 0.8% y-o-y to EUR1.20 billion in Q2 2021, as growth in Wholesale and Consumer Fixed-Mobile segments was offset by lower service revenues from Business and Consumer Legacy segments. Second-quarter net profits surged to EUR800 million compared to the year-ago figure of EUR135 million, which mainly reflected net effects of EUR649 million related to the transaction to launch Glaspoort – KPN’s fibre network joint venture with APG which was announced in March and began commercial operations in June. Operating profit (EBIT) reached EUR1.09 billion in April-June 2021, compared to EUR233 million a year earlier, while three-month EBITDA after Leases (EBTDAaL) edged up 0.6% to EUR589 million.

KPN reiterated its fiscal 2021 outlook for adjusted EBITDAaL of approximately EUR2.35 billion, CAPEX of EUR1.20 billion and Free Cash Flow of approximately EUR765 million. KPN also said it intends to buy back shares worth EUR200 million in 2021.

Netherlands, KPN