KPN Q2 revenues slide 7%

30 Jul 2014

Dutch telecoms operator KPN has posted a net profit of EUR349 million (USD469 million) for the second quarter of 2014, compared to the EUR162 million reported in the year-ago period, supported by a EUR451 million release of a provision related to a pension plan agreement. Excluding the provision, the company made a net loss of EUR12 million, due to lower EBITDA (down 19% year-on-year to EUR633 million) and higher tax expenses. Revenues totalled EUR2.004 billion in 2Q14, a decrease of 7.1% from EUR2.156 billion twelve months earlier, due to high competition in the mobile market (resulting in lower price levels) and a continuing decline in the size of the business market. CAPEX for the three-month period was EUR310 million, down by 25% year-on-year, mainly because of lower customer driven investments, lower network investments and KPN’s ‘Simplification’ programme.

At 30 June 2014 KPN reported a total of 7.300 million domestic consumer mobile customers (compared to 7.343 million a year earlier), including 845,000 4G subscribers. The business mobile base (excluding M2M) grew 3.1% to 1.710 million at mid-2014, including 525,000 4G clients, giving KPN a total 4G customer base of 1.37 million. Consumer broadband subscribers grew 0.1% year-on-year to 2.727 million and IPTV customers reached 1.467 million, an increase of 21%. Dutch voice-over-internet protocol (VoIP) connections rose 5.0% over the same period to 1.832 million at mid-2014, although traditional voice lines dropped 22% year-on-year to 763,000. Belgian mobile customers totalled 3.196 million (down 4.7% from 3.352 million at mid-2013), while in Germany, E-Plus wireless users rose 5.8% year-on-year to 25.845 million. The sale of E-Plus was conditionally approved by the European Commission earlier this month and KPN expects that the transaction to be completed in the third quarter this year, following which it will hold a 20.5% stake in Telefonica Deutschland.

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