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Mobile outperforming the market; 2006 Outlook further upgraded
Den Haag, 31-10-06
Continued strong financial performance
- Revenues and other income up 3.7% (YTD: up 2.8%, 2.1% per guidance)
- EBITDA up 4.4% (YTD: up 8.2%, 6.7% per guidance)
- Strong free cash flow of EUR 728m (YTD: EUR 2,139m)
- EPS up 20% to EUR 0.18
Mobile outperforming the market
- E-Plus and BASE continuing to deliver profitable growth
- New brands in Germany experiencing strong customer demand
- E-Plus outperforming market with service revenue growth of 11% y-on-y
- KPN Mobile the Netherlands gaining market share
Future proofing Fixed division on track
- Increased investment in the customer base and line loss to competition are the principle consequences of the battle for market share in the Consumer segment
- KPN now firmly established as market leader in VoIP additions, turnaround in net line loss trend
- National rollout of DVB-T and continued growth in customer base
- All-IP program on track, directional support from regulator
2006 EBITDA and FCF Outlook further upgraded
- Revenues and other income confirmed at ‘low-single digit increase’
- EBITDA outlook upgraded from ‘low-single digit increase’ to ‘mid-single digit increase’
- Capex range confirmed at ‘EUR 1.7 – 1.8bn’
- Free cash flow outlook upgraded from ‘more than EUR 2.2bn’ to ‘more than EUR 2.4bn’ with higher than average capex and interest due in Q4 ’06
YTD shareholder returns EUR 2.6bn, exceeding February announcement
- EUR 1.6bn share repurchases including EUR 0.8bn buyback from Dutch State
- EUR 0.3bn interim dividend 2006 or EUR 0.16 per share
- EUR 0.7bn final dividend 2005 or EUR 0.32 per share
Ad Scheepbouwer, CEO of KPN, said:
"We are pleased with this strong performance and by the good progress on our initiatives to safeguard and drive the future progress of the group. Our Mobile businesses have again performed well, outperforming the market, and more than compensated for the challenges faced by the fixed market. Our Fixed business is now firmly established as VoIP market leader and saw a reduction in net line loss. With shareholder returns of EUR 2.6 billion so far this year and EBITDA and free cash flow guidance increased again for 2006, we believe that the group is well positioned for the challenges ahead."
