KPN experiences profit lift in Q2 results
KPN reports 1.5% rise in Q2 earnings thanks to cost-cutting and retail gains
KPN narrowly beat market expectations with a reported 1.5% rise in second quarter core earnings, lifting its shares.
The company delivered adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €601 million, compared with the forecast of analysts polled by Reuters, who had predicted somewhere in the region of €584 million.
The company said that this was due to “improved operational efficiency as a result of simplification and lower subscriber retention and acquisition costs”.
CEO Eelco Blok said: “We are firmly on track delivering the key priorities of our strategy.” He added: “Nevertheless, we still have to improve customer satisfaction in business towards a positive level and we continue to experience strong price competition in mobile in our large enterprise and corporate segment.”
Net profit for the period ended 30 June rose to €191 million from €162 million for the same period a year ago. Revenue for the period, fell to €1.63 billion from €1.68 billion from the previous year, partly due to price pressure in mobile, the company said. In the consumer market, it increased income from fixed and mobile services, improving revenue per household by 5% to €42.
“All in all, our performance in the first six months positions us well to achieve the goals we set at the start of the year,” said Blok.
Earlier this month the company lost its appeal against a decision by the Netherlands’ Authority for Consumers and Markets that it should offer competitors access to its fixed copper network and fibre network through to 2019.