KPN’s shares declined modestly by 0.7% as the market digested a cautious revenue outlook amid ongoing headwinds in low-margin B2B segments, despite stable margin improvement and steady subscriber growth.
- Group service revenues rose 0.8% in Q2, driven by consumer, SME, and wholesale segments; however, declines persisted in Tailored Solutions and LCE impacting overall growth.
- Adjusted revenues fell 0.5% year-over-year mainly due to absence of one-off IP sales and IPR benefits; excluding these, revenues increased 2.5%.
- Adjusted EBITDA after leases decreased 0.3% reported but grew 3.4% on a comparable basis, supported by revenue growth and cost reductions; EBITDA margin improved 8 basis points to 45.6%.
- Consumer segment showed improving trends with 1.9% service revenue growth and positive broadband net adds; mobile post-paid subscribers increased by 18,000 driving 3.2% mobile service revenue growth.
- Business segment revenue declined 1.1%, with SME growth nearly 7% offset by continued weakness in Tailored Solutions and low-margin LCE, which management expects to remain pressured through year-end.
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