KPN Q1 sales fall 2.9%; continues to focus on high value post-paid retention

26 Apr 2019

Dutch full-service telco KPN’s total revenues dropped 2.9% year-on-year in Q1 2019 to EUR1.362 billion (USD1.517 billion). Before intra-group eliminations, consumer revenue was EUR728 million (down 2.1%), business revenue EUR506 million (down 4.9%) and wholesale revenue EUR157 million (up 3.0%). Reported EBITDA (before adjustments) was EUR570 million (down 4.7%). Operating profit fell 12% y-o-y to EUR189 million in the first three months of 2019, and net profit for the period stood at EUR89 million, 10% lower than in 1Q18. Quarterly CAPEX was EUR261 million (raised by 11% y-o-y).

A group statement said that KPN continued to focus on fixed-mobile convergence in a competitive environment, succeeding in increasing its fixed-plus-mobile customer base, particularly in the post-paid segment. It confirmed earlier decisions to focus on the main KPN brand and ‘cannibalise’ popular features of its multi-play sub-brands Telfort and XS4ALL, which are being phased out. KPN added that it ‘continues to focus on retention of its high value post-paid customers’, explaining that as a consequence the KPN brand’s total post-paid mobile customer base declined (by 1,000) in 1Q19, whilst the combined mobile user base of no-frills brands Telfort and Simyo also continued to fall (by 5,000 in the quarter). In the fixed network division, residential ARPU increased 5.4% y-o-y whilst KPN added 1,000 consumer broadband customers, 8,000 small business customers and 16,000 IPTV subscribers in three months.

Netherlands , KPN



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