KPN hikes profit as Q3 revenue falls
Netherlands-based KPN has reported a 14% rise in Q3 profits to €398 million but revealed an 8% fall in revenue to €3.33 billion.
The carrier has been on an aggressive cost-cutting drive, reducing staff numbers by 6% in January.
“KPN's third quarter results show that our focus on ebitda, free cash flow and market shares is paying off,” CEO Ad Scheepbouwer said. “With a resilient performance in our Dutch telco business, solid profitability at Mobile International and an unchanged economic impact on our businesses compared to the first half of 2009, our focus has enabled KPN to maintain market shares and grow ebitda for the third consecutive quarter, up 4.4% year-on-year.”
Global revenue growth was driven by continued expansion of KPN's MVNO operations in Spain and France, Scheepbouwer said.
He said KPN was on track strategically and re-confirmed the outlook for revenues, ebitda, and free cash flow for 2009 and 2010, which includes FY 2009 sales of between €13.6 billion and €13.8 billion, down from €14 billion euros last year. Revenue for 2010 will be “in line” with 2009.
KPN, which is also the third-largest wireless operator in Germany, cut its capex forecast for this year to between €1.8 billion and €1.9 billion, down from a previous guidance of about €2 billion.
KPN also slashed 1,400 jobs at its computer-services unit Getronics, where Q3 sales fell 9.2% to €485 million euros as customers postponed investment decisions.