KPN saw adjusted revenue fall 4.3 percent, and Ebitda slide 1.7 percent in its latest financials, as failing business sales again undermined its growth in bundled high value mobile, broadband and TV services.
For the three months to 30 June, KPN finished the quarter with €1.676 million in revenue, with Ebitda was at €592 million. The Dutch telecoms operator put the decreases down to lower revenues from business customers, and higher spend on consumer retention.
These impacts were eased by €350 million of cost savings achieved through its ‘simplification’ programme. Eelco Blok, CEO at KPN, said: “The execution of our strategy “Simplify, Grow, Innovate” is firmly on track.”
KPN has outlined a three-year strategy in March to make annual savings of €300 million, whilst also putting focus on new innovation.
Its adjusted Ebitda margin increased by 0.7 percentage points to 39.5 percent. Operating profit was €205 million, up 21 percent on the year-ago quarter, driven by lower depreciation and its restructuring costs, it said.
Consumer revenues slipped 0.9 percent to €767 million, of which residential services comprised €458 million, rising 2.5 percent in the period, and mobile services contributed €309 million, falling 5.5 percent.
KPN added 15,000 broadband customers, 33,000 IPTV customers and 23,000 postpaid subscribers.
Fixed-mobile bundles accounted for 38 percent of its postpaid base and 33 percent of its broadband base at the end of the quarter, up from 26 percent and 23 percent respectively. More than half of customers on KPN-branded postpaid deals now take both fixed and mobile services, it said.
KPN said postpaid growth was led by a number of new services, including more television channels, full HD for OTT services, a new internet security service, and a 4K television pilot.
Losses in its budget prepaid businesses Telfort and Simyo undermined its higher value growth in mobile, broadband and television. Lower hardware sales during the quarter also brought its consumer revenue numbers lower.
Business revenue slumped 7.3 percent to €573 million, following a similarly poor showing in the first quarter.
It said solid growth in multi-play and IT related business services was offset by lower revenues from traditional services.