Tumbling revenues reflected another difficult quarter for KPN as the Chief Executive promised to reinstate a dividend later this year.
Q2 revenues down 7.1 percent year-on-year to €2 billion due what the operator said were competitive mobile markets and an ongoing decline in the size of the enterprise market.
In the Netherlands, revenues were down 7.6 percent to €1.6 billion as its enterprise division suffered a 12 percent dip in sales and its consumer mobile arm saw sales decrease by nine percent. This came despite the number of 4G LTE subscriptions rising to 1.4 million.
Although the number of broadband customers fell by 7,000, there was better news in KPN’s consumer residential segment, which saw revenues up by 0.8 percent.
IPTV customers broke through the two million barrier, boosting market share by two percentage points to 26 percent and ARPU by 4.8 percent.
Revenues were also down in KPN’s Belgian subsidiary BASE as customer numbers declined.
Group profits rose but were skewed by a €451 million boost from a change to its pension plan agreement.
Capex fell by a quarter to €310 million but the operator said it would accelerate the roll-out of vectoring, leading to around 50 percent coverage of households with speeds of 100Mbps by the end of this year.
CEO Eelco Blok said: “Driven by the good strategic progress, including high customer additions in mobile and IPTV, and the execution of the Simplification program, we are witnessing a quarter-on-quarter financial improvement and remain on track for stabilizing financial performance towards the end of this year.”
The Chief Executive also provided an update on the sale of its German subsidiary to Telefónica, which won conditional approval from Brussels earlier this month.
Blok commented: “We are confident that the [E-Plus] sale will complete in the third quarter this year. The sale of E-Plus will lead to a solid financial profile, providing a strong platform to execute our strategy in The Netherlands and Belgium. Following the sale of E-Plus, we will recommence dividend payments over 2014, which we intend to grow in 2015.”
The operator revealed last year that dividends would not recommence until 2015.