Rationalisation of the network is paying off
27 Oct 16
Quite a good Q3 for KPN: even if revenues, down by 3% yoy, are still suffering from the decline in the business market size (consumer revenues grew by 1.5% yoy), the EBITDA was good (growing by 3.4% yoy as it was down by 4.5% in Q1 and by 1.7% in Q2) driven by customer base growth and the positive impact of cost savings.
Consolidating its market shares on the consumer side
27 Jul 16
Although Q1 revenues had decreased by 2.6% yoy while the EBITDA had declined slightly more by 4.5%, it was the opposite in Q2 with revenues down more than expected by 4.3% yoy but a better EBITDA down by only 1.7%. Once again, growing Consumer revenues were offset by the impact of the ongoing decline in the size of the business market. So, as in the two previous quarters, a mixed release.
Q1 in line with expectations
02 May 16
Q1 16 revenues declined by 2.6% yoy (excluding the contact centre business SNT Deutschland which was sold in Q1). Once again growing Consumer revenues were offset by the impact of the ongoing decline in size of the business market and lower revenues at iBasis. The EBITDA decreased by 4.5% yoy but this is due to temporarily higher IT-related costs in network and operations in the run-up to IT rationalisation. Note also an impairment charge related to iBasis for €45m. KPN intends to pay a regular dividend of €10 cents in respect of 2016 and grow the dividend in line with its free cash flow growth profile thereafter. KPN will distribute €1.2bn of the combined proceeds from the sale of BASE to Telenet and c.5% Telefónica Deutschland shares to its shareholders in the form of a capital repayment of €28 cents per share. KPN expects to execute the capital repayment in June 2016. The remaining 15.5% stake in Telefónica Deutschland is treated as a financial investment and KPN still intends to distribute the expected Telefónica Deutschland dividend over 2015 (€110m) to its shareholders in the form of a special interim dividend distribution of €2.5 cents per share (the payment date is 27 May 2016).
A mixed release
03 Feb 16
Q4 2015 revenues declined by 5.9% yoy (adjusted with a tax settlement benefit of €44m in Q4 2014). Growing Consumer revenues were offset by the impact of the ongoing decline of the business market size and lower revenues at iBasis. The EBITDA decreased however by only 0.7% yoy in Q4 2015 (without the tax settlement benefit in Q4 2014). These results are quite disappointing compared to the previous Q3 where revenues were down by only 2.6% yoy (vs -3.5% in H1) thanks to 3.7% growth on the consumer side, while the EBITDA grew by 4.6% (vs. less than +1% in H1).