KPN’s IPTV net additions remained strong in the third quarter, while its broadband business saw a return to growth.
Results published by the Dutch incumbent show that it ended Q3 with over 1.5 million IPTV customers, gaining 49,000 in the three month period, compared to 43,000 in Q2 this year and 72,000 in Q3 2013.
Its share of the TV market remained relatively constant, amounting to 26% in Q2 and Q3 this year and 25% in Q3 2013.
Meanwhile, the number of broadband net adds in Q3 of 6,000 contrasted with a loss of 7,000 in the previous quarter and gain of 4,000 in Q3 2013.
KPN’s share of the broadband market was also relatively constant at 40% in Q2 and Q3 this year and 41% in Q3 2013.
KPN says it is now on track to have around 50% coverage of households with 100 Mbps by the end of this year.
KPN had revenues of €1,978 million in Q3, down 4.9% on a year earlier.
EBITDA amounted to €633 million (-15%) and net profit €193 million (-31%).
Commenting on the company’s results, CEO Eelco Blok said: “In the third quarter of 2014, we continued to make good strategic progress. In the consumer market we realised customer base growth for all our main services. The business market remained challenging, although we made good progress in growing multi play and 4G. We have significantly improved customer satisfaction to well above market averages in The Netherlands supported by our simplified product portfolio and client processes.
“Due to the improved product portfolio and Simplification, our financial performance is gradually improving and we remain on track for growing free cash flow next year, supported by lower interest payments.
“The sale of E-Plus has been completed and has given us a solid financial profile, which provides a strong platform to execute our strategy in The Netherlands and Belgium. We have recommenced dividend payments in respect of 2014, which we intend to grow in respect of 2015. The €5 billion cash proceeds increase our financial flexibility. The bond tender of up to €2 billion announced this morning is an important step to align our financial profile with the new company profile. We now also own an attractive 20.5% stake in Telefónica Deutschland and expect to benefit from substantial synergies and dividend payments.”
