KPN Revenues Down on Disposals - Profits Up Slightly

Netherlands headquartered telco, KPN has reported that its Q2 revenue declined by 6.9% to EUR3.41 billion (US$4.84 billion), from EUR3.66 billion, while net profit was up at EUR370 million (US$526 million), from EUR353 million a year ago.

Ad Scheepbouwer, CEO KPN commented: "KPN has delivered a resilient performance whilst maintaining market shares this quarter in the face of economic and regulatory challenges and we are on track to deliver around EUR 2.4bn free cash flow for the year," but added that "we continue to see limited economic impact on consumer markets, but business markets are being impacted and there are no signs of economic recovery as yet."

KPN Group's revenues and other income were down 6.9% y-on-y in Q2 2009, which is largely attributable to a number of disposals of Getronics' business units. Excluding the disposed activities, total revenues and other income decreased 2% y-on-y as a result of revenue decline in the Netherlands, mainly attributable to iBasis. Mobile International's revenues and other income remained stable at -0.1% y-on-y in Q2 2009.

In Q2 2009, Mobile International reported flat revenues and a 0.9% increase in service revenues. Contrary to the positive development in Belgium, in Germany the top line showed a slight decrease and the outperformance gap versus competition in Germany seems to have narrowed. The top line in Germany has been negatively impacted by lower termination rates and KPN anticipates additional revenue pressure in the second half of 2009.

Net debt at the end of Q2 2009 amounted to EUR 11.8bn, compared to EUR 11.7bn at the end of the previous quarter.

Posted to the site on 23rd July 2009