Dutch operator KPN has announced a bond tender of up to €2 billion as it attempts to reduce its debt burden.
Net debt increased by 7.3 percent year-on-year in the third quarter to €10.3 billion.
CEO Eelco Blok said the bond tender was “an important step to align our financial profile with the new company profile”.
The operator continues to suffer financially with revenues down four percent at €1.9 billion and a loss of €76 million in the three months to September.
The loss was blamed on the revaluation of fibre-optic company Reggefiber, in which KPN owns a 60 percent stake.
Revenues in KPN's home market were down 5.8 percent at €1.5 billion.
The operator did see growth in its consumer 4G subscriber base, which passed the one million mark after making 225,000 additions in the quarter.
However, revenues at its consumer mobile business were down 5.6 percent to €354 million.
KPN’s broadband and IPTV business also recorded a decline, with revenues down 2.5 percent at €447 million.
The fall came despite the operator’s broadband customer base returning to growth during the quarter to reach 2.7 million and IPTV subscribers rising by 49,000 to 1.5 million.
KPN said the number of triple-play bundles grew five percent to 1.3 million and now account for almost half of its broadband customer base.
In its enterprise business unit, revenues fell seven percent to €706 million. The fall came despite the addition of 87,000 4G subscribers, bringing the total to 612,000.
Outside of the Netherlands, revenues fell 4.4 percent to €176 million in Belgium. Meanwhile, US-based iBasis recorded a two percent loss of revenue, to €243 million.
KPN said it was moving towards a “leaner operating model”, having recording savings of €100 million in the first nine months of the year. Capex was down over a fifth in Q3 to €283 million.
Blok said he was optimistic that KPN’s new 20.5 percent stake in Telefónica Deutschland would bring beneficial returns for the company moving forward.
He commented: “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.
“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.”