KPN has announced another poor financial performance in its latest quarterly release.
The Netherlands-based operator saw profits fall 32 percent year-on-year to €250 million between July and September, while group revenues fell 6.5 percent to a shade over €3 billion.
The results continue a trend of losses for the operator that CEO Eelco Blok predicted would be reversed in the second half of this year.
Blok attributed the latest results to “an uncertain and challenging macro environment” in which growth had been hampered by price competition in the operator’s German market, by regulation, and by the sale of its international ICT services and workspace management brand Getronics, which was finalised in May.
Revenues in KPN’s domestic market declined 11 percent to €1.8 billion with every one of its principal business lines registering a fall.
Its international business also suffered, falling 1.3 percent to €1.1 billion.
Only Belgium bucked the trend, reporting a 1.5 percent rise in revenues driven by B2B, wholesale and data.
The operator has confirmed its 2012 outlook, but the declining revenues caused KPN to exceed its target net debt-to-EBITDA ratio.
Eelco said: “We recognise that we are outside our self-imposed financial framework this quarter, and we expect that this situation could continue for the coming quarters.”
Over the next five years, KPN hopes to save at least €200 million as the result of a partnership with Tech Mahindra.