CEO Ad Scheepbouwer said "I am pleased to be able to report that further progress has been made in stimulating growth in relevant segments at KPN's businesses. This has been achieved at the same time as delivering strong increases in profitability and cash flow. With a good first half behind us, we have the confidence to raise, yet again, our demanding financial targets for the full year."
The mobile division reported a 6.4% growth in operating revenues, which reflects higher revenues in The Netherlands and Germany.
The total number of subscribers increased from 13.4 million at the end of the second quarter of 2002 to 13.8 million at the end of the second quarter of 2003. The number of post-paid customers grew by approximately 0.5 million, whilst the number of pre-paid customers decreased by approximately 0.1 million. As well as an increased installed base, usage per customer also showed a positive development. The increase in customers is especially notable in Germany, which increased by 624,000 customers compared to the same period last year.
At the end of the second quarter of 2003, KPN Mobile had 353,000 i-mode customers. KPN also continues to address new market segments. i-mode has been made available for PrePay customers, started in the Netherlands in the beginning of August and in Germany in Q4 of this year. The end of the second quarter also saw the launch of an international commercial i-mode campaign. These initiatives will continue to be implemented across KPN's markets during the second half of 2003, and will enhance the adoption and usage of i-mode. KPN expects to have one million i-mode customers by the end of 2003.
Operating EBITDA increased due to improved operating EBITDA in The Netherlands and Belgium, which was not entirely offset by a decrease of the operating EBITDA in Germany as a consequence of the acquisition costs related to the increase of the customer base. The increase in EBIT was mainly due to positive developments in operating EBITDA and lower depreciation and amortization charges as a result of the significant impairment charges in 2002."
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