• Artikel

E-Plus delivers; 2006 outlook upgraded



Den Haag, 1-8-06

Strong financial performance in tough market demonstrates success of group strategies

  • Revenues and other income up 1.0% (YTD: up 2.4%, 1.3% per guidance definition)
  • EBITDA up 10.1% (YTD: up 10.1%, 6.6% per guidance definition); mobile EBITDA margin of 38.9% highest ever
  • Strong free cash flow of EUR 654m, up EUR 79m, or 13.7% (YTD: EUR 1,411m)
  • Operating result up EUR 114m, or 20.5%, to EUR 670m (YTD: up EUR 210m, or 19.6%)
  • Net profit nearly doubled to EUR 461m, EPS more than doubled to EUR 0.22

E-Plus delivering on service revenue and margin objectives within a year of strategy revision

  • E-Plus makes EUR 101m operating profit as multibrand strategy delivers revenue and margin growth
  • Outperforming market on service revenue growth, up 9.8% vs. estimated market growth of 1.0%, taking more than 30% of total market net additions
  • New brands already comprise nearly one quarter of customer base and enjoy considerably higher MoUs and ARPUs than traditional E-Plus brand
  • Successful conversion to ´pull´ faster than anticipated, resulting in strong margin improvement following steep decline in SAC

Fixed consistently delivering against Attack, Defend, Exploit strategy

  • Successfully increasing market share in declining voice market while facing significant challenges in consumer market evidenced by line loss
  • Establishing a strong base for future growth: intensive focus and investment in new capabilities and continuous innovation in services
  • Revenue from new technology-based services up nearly 9% q-on-q, 17% y-on-y
  • Headcount reduction program ahead of schedule and well on track to reach 8,000 (minus 38% vs. YE 2004) in 2009

2006 Outlook upgraded

  • Revenues and other income outlook confirmed at low-single digit increase
  • EBITDA outlook upgraded from flat to low-single digit increase
  • Capex range narrowed to EUR 1.7 - 1.8bn
  • Free cash flow outlook upgraded from more than EUR 2bn to more than EUR 2.2bn

Committed to deliver shareholder returns

  • Interim dividend of EUR 0.16 per share declared, up 23%
  • EUR 1bn share repurchase program on track: to date 55% completed
  • Since March 2004 EUR 3.3bn shares repurchased, 18.6% of outstanding shares, and dividends of EUR 2.7bn paid/declared, totaling EUR 6.0bn

Ad Scheepbouwer, CEO of KPN, said:

"The multibrand strategy has proven key in delivering these strong results in a very tough market. In particular I am delighted to highlight the return to operating profit by E-Plus, which significantly outperformed its market in service revenue and margin growth, taking more than 30% of total market net additions. Our Attack, Defend, Exploit initiative launched last year has really energised the Group. Revenues from new technology-based services in our Fixed division were up substantially, supported by a stream of new innovative service launches, and in spite of fiercely competitive market conditions that were exacerbated by asymmetric market regulation. Free cash flow increased strongly and earnings per share more than doubled. As a result of this strong progress in the first half, built upon the new-found spirit [and determination] of the Group, we are upgrading our outlook for the year. We now expect a low single digit increase in both revenues and EBITDA, and an improvement in free cash flow to more than EUR2.2bn."

Press release is available for download here