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Record net additions E-plus; new revenues Fixed Division approaching 20%
Den Haag, 9-5-06
Strong financial results
- Reported revenues and other income up 3.9%, up 1.6% as per guidance definition
- Reported EBITDA up 10.2%, up 3.7% as per guidance definition
- Free Cash Flow EUR 757m, benefiting from a one-off tax cash refund of EUR 219m
- EPS up EUR 0.07 to EUR 0.19 (non-diluted)
Germany making steady progress towards achieving turnaround objectives
- Record quarter of high quality net additions
- Significant decrease in customer acquisition costs
Consistently delivering against Attack, Defend, Exploit strategy
- All IP strategy implementation and cost reduction on track
- Strong demand for KPN VoIP beginning to impact y-on-y line loss trend
- Broadband growth continues, retail market share up 6.1% points y-on-y to 37.9%
- IPTV launched, full functionality objective reached, key content deals signed
- Control over DVB-T license and national network secured
- Strong performance in Business segment, demand for new services including end-to-end ICT solutions lifting trend
- Mobile the Netherlands continues to outperform on service revenue growth
Shareholder returns on track
- Buy-back of EUR 1 billion launched March 20. 17.1% of the repurchase programme completed as of May 5
- Final 2005 dividend of EUR 661 million paid April 13
- On February 1, committed 2006 and 2007 dividend of at least EUR 950 million
- By year-end 2006 shareholder returns through repurchases and dividends will total at least EUR 6.4 billion since March 11, 2004 when first repurchase program launched
Ad Scheepbouwer, CEO of KPN, said:
"We are pleased to report a strong set of results which demonstrate that we have developed the right strategy at the right time to address market trends, evidenced by the success of VoIP and a strong increase in demand for new IP-based services in general. New revenues are now approaching 20% of total revenues of the Fixed Division.
In Mobile, real progress is being made by E-Plus, with the highest ever net additions in the quarter and a break even EBIT for the third consecutive quarter. With our strategy and restructuring initiatives well on track and a strong execution capability, we are well placed to accelerate the transformation of KPN into a successful multimedia focused company. Our senior team at Board level has been strengthened considerably and we are confident of meeting our expectations for the year”.
