KPN 3Q14 revenue falls 4.9%

28 Oct 2014

The Netherlands’ incumbent PSTN operator and largest cellco by subscribers KPN has revealed consolidated adjusted revenue of EUR1.978 billion (USD2.511 billion) in 3Q14, against EUR2.080 billion in 3Q13, a fall of 4.9% year-on-year, with customer base growth offset by lower mobile prices in comparison to last year. Adjusted EBITDA decreased 15% from EUR762 million to EUR650 million y-o-y, with the falling revenues and phasing out of handset lease pinned as responsible. CAPEX fell from EUR357 million in 3Q13 to EUR283 million in 3Q14, a reduction of 21%, driven by lower customer-based investments and lower network investments. The number of subscribers to fixed-mobile bundles grew by 84,000 while monthly average revenue per user dropped y-o-y from EUR31 to EUR28. Free cash flow substantially increased by over 100% y-o-y from EUR63 million to EUR250 million.

KPN CEO, Eelco Blok, commented: ‘In the third quarter of 2014, we continued to make good strategic progress. In the consumer market we realised customer base growth for all our main services. The business market remained challenging, although we made good progress in growing multi play and 4G…The sale of [German cellco] E-Plus has been completed and has given us a solid financial profile, which provides a strong platform to execute our strategy in The Netherlands and Belgium. We have recommenced dividend payments in respect of 2014, which we intend to grow in respect of 2015…We now also own an attractive 20.5% stake in Telefonica Deutschland and expect to benefit from substantial synergies and dividend payments.’

The company’s outlook remains as announced in February 2014, to stabilise financial performance towards the end of the year and incur CAPEX of less than EUR1.4 billion.

Netherlands,KPN,

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