Dutch operator group KPN’s healthy profit increase last quarter looks like a one-off, with revenue growth flat. Revenues of €1.35 billion were down a percent on the year-ago quarter when adjusted for adjustments. Operating profit was up 11% but net profit was up 107% thanks to a one-off € 67m positive revaluation of KPN’s deferred tax asset and € 17m release of revenue related provisions in Wholesale. As you can see that accounts for nearly all the growth. Encouraging base developments in consumer segment with growth in postpaid base and a stabilizing broadband base driven by fiber.
Supported by open access policy, the wholesale segment continues to show solid growth. Due to several factors’ adverse customer satisfaction trends in both the consumer and business segment. This has undivided attention and we have taken additional measures to ensure the service levels customers expect from the quality leader in the Netherlands. KPN’s numbers were in line with analyst expectations and its outlook is for more of the same. This is consistent with the annual numbers also shown in the above table, which reveal that despite good Q4 profitability, annual profits were down 9%. Nonetheless KPN shares were up 4% on the numbers, which is about as exciting as it gets for KPN shareholders. Still, there’s always next year’s dividend to look forward to.