UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For April 29, 2008
KONINKLIJKE KPN N.V.
Maanplein 55
2516 CK The Hague
The Netherlands
(Exact
name of registrant and address of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form 20-F
x
Form 40-F
o
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
o
No
x
If
Yes is marked, indicate below the file under assigned to the registrant in
connection with Rule 12g3-2(b):
This
Report on Form 6-K contains a copy of the following press release:
·
First Quarter Results: Solid performance in Q1 2008, dated 29
April, 2008.
First Quarter Results Press
Release, 29 April 2008
Solid
performance in Q1 2008
Highlights
·
Solid Q1 performance in revenues, EBITDA and earnings
·
Accelerating growth and continued market outperformance at E-Plus
·
Resilient underlying EBITDA in the Netherlands
·
Growth in mobile data, VoIP and TV; further improvement of net line loss
·
Solid performance at Getronics
Group financials
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Q1 2008
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Q1 2007
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Change
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(In
millions of euro, unless indicated otherwise)
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Revenues and other income
|
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3,570
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|
2,924
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22
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%
|
Of which revenues
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|
3,532
|
|
2,918
|
|
21
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%
|
|
|
|
|
|
|
|
|
EBITDA
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1,231
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|
1,189
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3.5
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%
|
EBITDA margin
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34.5
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%
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40.7
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%
|
|
|
|
|
|
|
|
|
|
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Operating result (EBIT)
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648
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537
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21
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%
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Profit for the period (net result)
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334
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|
313
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6.7
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%
|
Earnings per share (in euro)
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0.19
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0.16
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19
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%
|
|
|
|
|
|
|
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Cash flow from operating activities
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648
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834
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-22
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%
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Capital expenditure (PP&E and software)
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-356
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-276
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29
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%
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Proceeds from real estate
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13
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|
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|
Tax recapture at E-Plus
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46
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|
|
|
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|
Free cash flow
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351
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|
558
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-37
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%
|
We have delivered robust results with growth in revenues,
EBITDA and earnings. Our recent acquisitions have made a good contribution and
our existing businesses are also progressing well. Mobile International has
shown excellent performance spearheaded by E-Plus where service revenue growth
accelerated again and whose customer base now exceeds 15 million customers.
First quarter performance in the Netherlands encourages us to expect that we
will comfortably pass the 2008 EBITDA floor of EUR 3,174m provided in our
guidance on February 5, 2008. Meanwhile we are on track to deliver EUR
2.4bn free cash flow in 2008 as per our guidance, despite first quarter free
cash flow being lower than last year as a result of tax, interest, capex and
working capital phasing differences. Overall we have made a strong start towards
achieving the goals of our recently announced Back to Growth strategy.
Ad Scheepbouwer, CEO KPN
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Corporate
Communication
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Investor
Relations
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Press Office
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Tel: +31 70 4466300
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Tel: +31 70 4460986
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E-mail: press@kpn.com
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E-mail: ir@kpn.com
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1
KPN Group
Financial review
Revenues and other income
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Q1 2008
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Q1 2007
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Change
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(In millions of euro)
|
|
|
|
|
|
|
|
KPN Group
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3,570
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2,924
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22
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%
|
|
|
|
|
|
|
|
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- Consumer
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|
980
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|
1,037
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-5.5
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%
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- Business
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|
795
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|
830
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-4.2
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%
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- Getronics
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515
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|
|
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- Wholesale & Operations
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953
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911
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4.6
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%
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- Other (incl. intercompany revenues)
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-649
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-716
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9.4
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%
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The Netherlands
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2,594
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2,062
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26
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%
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|
|
|
|
|
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- E-Plus
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755
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698
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8.2
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%
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- BASE
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150
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152
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-1.3
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%
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- Mobile Wholesale NL
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85
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83
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2.4
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%
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- Other (incl. intercompany revenues)
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38
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4
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>100
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%
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Mobile International
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1,028
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937
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9.7
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%
|
Revenues and
other income
·
Group revenues
and other income up 22% to EUR 3.6bn, driven by acquisitions.
·
Revenues and other income for the
Netherlands were up 26% or EUR 532m due to the consolidation of
Getronics (external revenues of EUR 504m in Q1
2008) and iBasis (external revenues of EUR 179m).
Within Mobile International, revenues and other
income increased by 9.7% or EUR 91m due to the
organic growth at E-Plus, the acquisition of SMS
Michel in Q1 and the acquisition effect of Tele2
Belgium (consolidated as of Q4 2007).
EBITDA
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Q1 2008
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Q1 2007
|
|
change
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(In
millions of euro)
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|
|
|
|
|
|
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KPN Group
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1,231
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1,189
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3.5
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%
|
|
|
|
|
|
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- Consumer
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194
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181
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7.2
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%
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- Business
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190
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194
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-2.1
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%
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- Getronics
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24
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- Wholesale & Operations
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468
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482
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-2.9
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%
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- Other
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1
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2
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-50.0
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%
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The Netherlands
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877
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859
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2.1
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%
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- E-Plus
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284
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253
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12
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%
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- BASE
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54
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60
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-10
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%
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- Mobile Wholesale NL
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36
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28
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29
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%
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- Other
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-13
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-4
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>100
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%
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Mobile International
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361
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337
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7.1
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%
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EBITDA
·
EBITDA up 3.5% or EUR 42m,
despite the impact of MTA tariff reductions (EUR 25m) and roaming tariff
reductions of
the same order of magnitude, driven by solid results of Getronics, continued
profitable
growth at Mobile International and a pick up in the Consumer business
within the Netherlands.
2
Free cash
flow down 37% to EUR 351m
In Q1 2008, free cash flow amounted to EUR 351m, which
is EUR 207m less than in Q1 2007. The EUR 207m difference can be explained by:
·
Circa EUR 80m
due to higher capital expenditure
·
Circa EUR 70m
due to an increase in interest, of which roughly 70% is from a difference in
the phasing of
interest payments and roughly 30% is
attributable to an increase of net debt
·
Circa EUR 60m(
1)
due to tax as
the company moved into a tax paying position.
First quarter working capital
outflow amounted to EUR 274m, a EUR 46m higher outflow compared to Q1
2007. The
increase was limited considering the spike of Q4 2007 capital expenditure,
fully converting into
cash payments in Q1 2008 (note that Q4 2007
capital expenditure was EUR 174m higher compared to Q4
2006) and the
amalgamation of Getronics, which has seasonal working capital outflows in the
first quarter.
Full year free cash flow is expected to come
in at least at EUR 2.4bn as per guidance, supported by the
inversion of
working capital seasonality, further progress on the working capital
improvement program
and the sale of real estate At the end of the
second quarter, it is expected that seasonality effects will have
largely
reversed.
Higher
effective tax rate and tax expense due to recognized deferred tax asset in Q4
2007
The effective tax rate in Q1
2008 was 29.6%, compared to 23.0% in Q1 2007. The increase was mainly
caused by the
recognition of deferred tax assets totaling EUR 1.3bn at E-Plus at December 31,
2007. As a
result, a tax expense in line with the normal effective tax rate will be
recorded for E-Plus in 2008 and
onwards. For more information
about the recognized deferred tax asset at E-Plus, please refer to the
separate tax
paper published on February 5, 2008 (available on www.kpn.com/ir).
EUR 106m
corporate income tax paid in Q1 2008
In the course of 2007, Royal
KPN and KPN Mobile had utilized all the tax losses from prior years. As a
result, KPN moved
into a tax paying position in the Netherlands in 2007. In Q1 2008 KPN paid
approximately
EUR 104m Dutch corporate income tax, of which EUR 46m was attributable to the
E-Plus tax
recapture.
Net debt to
EBITDA(
2)
stable
at 2.3x
Net debt at the end of Q1
2008 amounted to EUR 10.9bn compared to EUR 11.0bn in the previous quarter.
This resulted in
a net debt to EBITDA ratio of 2.3x (Q4 2007: 2.3x), comfortably within KPNs
target financial
framework of 2.0-2.5x. KPNs credit ratings
remained unchanged at BBB+ with a negative outlook
(Standard & Poors)
and Baa2 with a stable outlook (Moodys).
EUR 850m
Eurobond issued
KPN successfully launched a
EUR 850m Eurobond with a long seven year maturity and a coupon of 6.50%,
with a
settlement date of April 2, 2008 and a maturity date of January 15,
2016. The bond has been issued
under KPNs Global Medium
Term Note program and is listed on Euronext Amsterdam. The proceeds will
be used to
redeem the temporary drawdowns on the credit facilities, to refinance bonds maturing
in 2008
and for general corporate purposes.
Change in
strategy for share repurchases to maximize the number of shares repurchased
Between February 22 and March 31,
2008 KPN repurchased 18.1 million shares at an average price of EUR
11.76, for a total
amount of EUR 212.5m (EUR 199.4m of which was settled in Q1). In April 2008,
KPN
repurchased 6.7m shares for a total amount of EUR 77.3m (average price
per share EUR 11.48). As of April
28, 2008 29% of the EUR 1.0bn
share repurchase program has been completed.
As of April 29, 2008 KPN
will commence executing the remaining EUR 0.7bn of its share repurchase
program for 2008
in a slightly different manner. The new program will be more efficient,
allowing the
repurchase of more shares compared to the previous
purchase strategies. The program is in line with the
share repurchase mandate
approved by the Annual General Meeting of Shareholders (AGM) on April 15,
2008, and may be
continued during closed periods.
(1)
Please note that
the total tax payment for the first quarter amounts to EUR 106m of which EUR
46m relates to the tax
recapture at E-Plus
(2)
12 month rolling
average excluding book gains and restructuring costs, both over EUR 20m
3
Operating
review
KPN the
Netherlands: delivering on strategic priorities in Q1
·
Consumer has
shown a further reduction of line loss and brisk growth in new services such as
VoIP
and TV. In Consumer wireless, a decrease of revenues is recorded, but
the full impact of roaming and
MTA cuts has been absorbed
without impairing profitability following continued reductions in
network costs.
Competitive conditions in the wireless market continue to be volatile but are
expected
to stabilize in the medium term.
·
Business has
shown accelerating growth in IP-based services, outsourcing and most of ICT
services.
Within ICT Services, the PABX business line got off to a slow start,
after an abundant previous quarter.
Market share in this business
continues to grow and recovery to normal sales levels is expected in the
second quarter.
·
Getronics
results are encouraging; the acquisition of Getronics by KPN has contributed to
significant
new contract wins. Restructuring is progressing according to plan.
·
Within Wholesale &
Operations, the first customers have been connected to fiber, whilst at the
same
time costs and FTE reductions are on track.
Mobile
International: continued profitable growth, especially at E-Plus
·
E-Plus
:
service revenue growth accelerating
through continued customer growth.
·
BASE
:
focus on initiatives to reignite growth,
favorable MTA decision by Belgian Court.
·
Mobile Wholesale
NL
:
further growth to come from
new wholesale partnerships.
FTE
reductions ahead of plan
In the first quarter, the
number of FTEs in the Netherlands was reduced by 405 FTEs excluding the
acquisition
additions of 44 FTEs (excluding Getronics). Outside the Netherlands (excluding
Getronics) the
number of FTEs increased by 786, mainly due to
the acquisition of SMS Michel in Germany. Including
Getronics, at March 31,
2008 KPNs workforce in the Netherlands amounted to 26,414 FTEs and, as a
Group,
KPN employed 43,409 FTEs.
Collective
labour agreement for 2008 and 2009
In March 2008, KPN
(excluding Getronics) reached an agreement with trade unions in the Netherlands
with
respect to proposed changes to the Collective Labor Agreement. An
important change is that henceforth
indexation of pension
entitlements will be based on price inflation instead of KPNs salary
increases. The
size of the likely gain on the resulting
release of pension provision is being determined.
Restructuring
charges
In the first quarter of 2008,
restructuring charges amounted to EUR 9m, the same as in Q1 2007. Of this
EUR 9m, EUR 2m
related to the Netherlands excluding Getronics (Q1 2007: EUR 5m), EUR 1m to
Getronics
and EUR 6m to Other activities (Q1 2007: EUR 4m).
Performance
vs. Outlook
Expected
performance in 2008 and beyond in line with guidance
KPN has guided for high
single digit growth in its Mobile International business. First quarter
performance
was a 9.7% increase in revenue and a 7.1% increase in EBITDA on the
prior year.
In the Netherlands, guidance
was that EBITDA(
3)
in 2008 would decline by a maximum of EUR
100m, with
most cost reductions in the second half of the year. In the first
quarter a drop of approximately EUR 20m
was recorded. Indications are
that EBITDA(
4)
in the Netherlands is bottoming out, with
EBITDA(
4)
for the last
four quarters being EUR 842m (Q2 2007), EUR
801m (Q3 2007), EUR 782m (Q4 2007) and EUR 829m (Q1
2008). Capex for the year
2008 was guided to be approximately EUR 2bn and free cash flow was guided for
at least EUR
2.4bn, both of which are confirmed, see also the paragraph on Q1 free cash flow
above.
(3)
The Netherlands
excluding Getronics, iBasis/KGCS and book gains on sale of real estate, in 2007
amounting to
EUR 3,274m
4
Consumer
Financial review
Consumer financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
- Voice wireline
|
|
219
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|
298
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|
-27
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%
|
- Wireless services
|
|
410
|
|
432
|
|
-5.1
|
%
|
- Internet wireline
|
|
252
|
|
213
|
|
18
|
%
|
- Other (incl. intercompany revenues)
|
|
99
|
|
94
|
|
5.3
|
%
|
Revenues and other income
|
|
980
|
|
1,037
|
|
-5.5
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
851
|
|
910
|
|
-6.5
|
%
|
Of which: depreciation, amortization and
impairments
|
|
65
|
|
54
|
|
20
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
194
|
|
181
|
|
7.2
|
%
|
EBITDA margin
|
|
19.8
|
%
|
17.5
|
%
|
|
|
Revenues and
other income down 5.5%
Revenues and other income for
the Consumer segment in Q1 2008 decreased by EUR 57m due to a
decrease in
wireless services (EUR 22m) and voice wireline services (EUR 79m), which was
partly offset by
sustained growth in internet services (EUR
39m) as a result of an increasing ADSL customer base. Lower
revenues for
wireless services were mainly caused by MTA tariff cuts (EUR 13m) and by
roaming tariff cuts
in the same order of magnitude.
EBITDA up
7.2% in Q1 to EUR 194m
EBITDA increased by EUR 13m
compared to Q1 2007 and the EBITDA margin increased in the same period
to a record high
of 19.8%. This is mainly the result of cost savings from the simplification
process, first
time right initiatives and non recurring VoIP
costs (EUR 25m in Q1 2007, of which half relating to
Consumer), which together
more than compensated for negative MTA and roaming effects and the shift
towards lower
margin products.
Operating
review
Net line
loss halved since Q1 2007 to 70k
Net line loss during the
quarter improved to 70k, declining for the fourth consecutive quarter. By
offering a
range of retention offers, KPN has been successful in proactively
slowing down the decline in traditional
voice. KPN anticipates a
further improvement in net line loss beyond Q1 2008, supported by the fiber
rollout started
in 2008.
Continued
growth in VoIP and TV subscribers
KPNs broadband market share
remained stable at circa 44%. KPNs broadband strategy is focused on
strengthening
its leading position in each market segment and on increasing customer value.
Telfort
broadband was recently successfully launched as a value for money brand.
KPNs share of VoIP net
additions has increased and currently stands
at approximately 50%. Q1 2008 was another quarter with
healthy growth
of TV subscribers with 56k net adds. The customer base reached 553k (compared
to 296k in
Q1 2007), representing a market share of 19% of the digital TV market
and 8% of the total TV market.
KPNs IPTV proposition has
increased its contribution to net additions in the first quarter.
Platforms
and services ready for fiber, first customers connected in April
A key objective of the Back
to Growth strategy is to stop line loss before the end of 2010 on the back of
the rollout of
Fiber-to-the-Curb (FttC) and Fiber-to-the-Home (FttH) which will improve KPNs
competitive
position vis-à-vis cable. A key milestone towards this objective was
achieved in Q1. The first FttC and FttH
customers are being connected
to triple play offers (of which the existing VoIP and IPTV service platforms
are key
components).
5
Wireless absorbing
impact from regulation
Service revenues were down by
5.3% in Q1 mainly as a result of lower MTA (EUR 13m) and roaming tariffs
in the same
order of magnitude. The competitive environment continues to be volatile with
not all market
participants as yet following KPNs lead to
SAC and SRC reductions.
Growth in
wireless data
The share of service revenues
for data as a percentage of the total service revenues increased by 4%-points
to approximately
22% compared to the same quarter last year with non SMS data rapidly on the
rise. KPN
sees the number of customers with Surf & Mail data bundles
sharply increasing, whilst on the other
hand, mobile broadband
services are gathering pace. KPN launched two new core propositions (Laptop
Totaal for EUR
35/month and Laptop Totaal Plus for EUR 45/month, offering download speeds of
respectively 768
Kb/s and 1,536 Kb/s). KPN believes that the Netherlands may well take the lead
in the
deployment of mobile broadband services on the back of an extremely well
developed fixed line
broadband market in combination with all three
mobile operators having made significant investments in
UMTS
infrastructure. KPNs UMTS network has recently been tested to be the best of
all three by the Dutch
governments Telecom Agency (Agentschap
Telecom). Experience to date seems to indicate that the rise
of the mobile
broadband market will increase overall broadband market size, with consumers in
the
Netherlands having been conditioned to require very high bandwidth and therefore
likely to take a mobile
broadband subscription on top of an existing
cable or DSL connection.
Business
Financial
review
Business financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
- Infrastructure Services
|
|
622
|
|
660
|
|
-5.8
|
%
|
O
f which: Wireless Services
|
|
213
|
|
223
|
|
-4.5
|
%
|
- Corporate Solutions
|
|
128
|
|
109
|
|
17
|
%
|
- ICT Services
|
|
124
|
|
131
|
|
-5.3
|
%
|
- Other (incl. intercompany revenues)
|
|
-79
|
|
-70
|
|
13
|
%
|
Revenues and other income
|
|
795
|
|
830
|
|
-4.2
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
632
|
|
661
|
|
-4.4
|
%
|
Of which: depreciation, amortization and
impairments
|
|
27
|
|
25
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
190
|
|
194
|
|
-2.1
|
%
|
EBITDA margin
|
|
23.9
|
%
|
23.4
|
%
|
|
|
Organizational
restructuring to improve customer focus
As of Q1 2008 a new
organizational structure has come into effect in the Business segment.
Henceforth
reporting of results reflects the new organizational structure and the
breakdown of reported results for
2007 has been restated in the
interest of comparability. Please refer to Appendix H for details.
Revenues and
other income down 4.2% in Q1
Revenues and other income for
the Business segment in Q1 2008 decreased by EUR 35m y-on-y. Of this
decrease, MTA
reduction accounted for EUR 6m whilst the roaming effect is roughly double. The
remainder of the
decline is attributable to the PABX business line (reported under ICT Services)
taking a
step back in the first quarter resulting mainly from a peak in the
completion of projects in the fourth
quarter of 2007). KPN
believes that its market share in this line of business is increasing and that
as a
consequence, revenues will bounce back in the remaining quarters of
2008.
EBITDA down
2.1% in Q1
Despite a decline in revenues
and MTA and roaming tariff cuts, EBITDA was almost flat due to ongoing
cost reductions.
The EBITDA margin increased to 23.9% (up 0.5% point).
6
Operating
review
Continued
migration from traditional to IP-based services
The migration from
traditional wireline services to IP-based services continued in Q1 2008.
Traditional
services like PSTN/ISDN were down 7%, while new services like Business
DSL and E-VPN were up by more
than 60%.
Continued
growth in wireless customers, especially in data
The number of wireless
business customers increased by 19k in Q1, mainly due to new data customers.
The mobile data
campaign (successfully started in 2007) continues to show strong results,
demonstrated by
increased Blackberry, PDA and mobile data card
sales. Data (excluding SMS) as a percentage of total
wireless services in the
quarter showed strong growth to 15%, up from 9% one year ago.
New
partnerships in FttO
During Q1, KPN connected 11
business parks to Fiber-to-the-Office (FttO) and is targeting a 60% share of
the Top 300
business parks in the Netherlands by the end of 2008. Mostly, KPN prefers a
regional
marketing approach using local partners. A prime example of this is KPNs
participation in an open
partnership with BreedNet for rolling out the
largest FttO project in the Netherlands to 14 municipalities in
the Amsterdam
area, with financial contributions from government and municipalities and a focus
on SME
and non-profit organizations.
Growth in
new ICT services does not compensate decrease in PABX revenues
Whilst the PABX solutions
business declined in the first quarter, the new ICT services like Software
Online,
narrowcasting and housing & hosting kept growing at a rapid
pace. The number of net accounts for
Software Online grew
significantly to 22k in Q1 2008. Housing services were up close to 45% y-on-y,
with
our capacity now almost fully utilized. Hosting services were up
approximately 40% y-on-y. KPN is currently
expanding its capacity in
housing services to 17,200m(
2)
, with the fifth KPN
cybercenter under construction,
as well as by sharing
capacity with Getronics datacenters.
Corporate
Solutions continues strong growth
Following the successful
execution of dedicated programs for new large corporate customers and the cross
and upselling to
existing customers, Corporate Solutions was able to grow its revenues in Q1
2008 by 17%
compared to Q1 2007. The approach to service customers in dedicated
programs organized by branches,
has proven to be very
successful and has increased customer satisfaction in this segment of our
business.
Getronics
Financial
review
Getronics financial highlights
|
|
Q1 2008
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
Revenues and other income
|
|
515
|
|
|
|
|
|
Operating expenses
|
|
514
|
|
Of which: depreciation, amortization and
impairments
|
|
23
|
|
|
|
|
|
EBITDA
|
|
24
|
|
EBITDA margin
|
|
4.7
|
%
|
Strong
revenues in Benelux in Q1
In Q1, Getronics generated
solid revenues of EUR 515m. The business in the Netherlands was solid across
all major
activities, with revenues in line with Q1 2007.
EBITDA
impacted by release of provisions and lower restructuring costs
EBITDA amounted to EUR 24m,
including EUR 4m restructuring costs and integration costs. The EBITDA
was positively
influenced by a EUR 6m release in provisions related to rental contracts for
office buildings.
7
Operating
review
Future-ready
through industry leading solutions
Getronics strategy is
focused on workspace management with the ambition to be the market leader in
the
Benelux, coupled with a global delivery capability. In March 2008
Getronics launched Future-Ready
Workspace 2.0 (FRW). The new
workspace management solution differentiates itself as a tailor-made
through
standardization approach for its customers. FRW brings together all the
essential workspace tools
within a modular ICT
workspace environment, whose robust technology enables people to securely
communicate and
collaborate anytime, anywhere. This concept was presented during an Investor
Day on
March 6, and has since resulted in positive research reports from
leading industry analysts.
Customer
wins ongoing
In Q1, new contracts and
multi-year contract extensions were signed with key customers including Nestlé,
PSN, Kings
College London and G4S. PSN, a major international service contractor to oil
and gas
exploration and production customers, signed a five year agreement for
full management of their global IT
infrastructure. Nestlé in
Switzerland signed a multi-year contract renewal for service desk support
activities.
Meanwhile the sales funnel of new opportunities is recovering, aided by the
decreasing
uncertainty on Getronics business outlook following its acquisition by
KPN. KPN confirms its 2010 outlook
for Getronics with EUR 1.5bn
of revenues and EUR 125m of EBITDA.
Restructuring
on track
The planned integration of
KPN ICT Services and Corporate Solutions into Getronics is on track for live
implementation
on January 1, 2009. The integration of headquarter functions of Getronics
into KPN has
been completed. Further restructuring of the
Dutch organization is in progress and completion is expected
in Q2 2008.
Good
progress in divesting non-core businesses
KPN confirms its intentions
to divest non-core Getronics businesses, as announced on February 5. In
the
Benelux, KPN is considering divesting Business Applications Services and
Business Solutions for local
governments and healthcare.
Combined, these businesses generate about EUR 400m in annual revenues.
The sale process
for these businesses started in April 2008, although the final decision to
divest will be
made depending on market circumstances. In the
global operations, several divestments have been
completed since the
acquisition was closed in October last year. Spain and Portugal were
divested in
December and Australia in February. To maintain its footprint and
portfolio, Getronics has established
local partnerships.
8
Wholesale & Operations
Financial review
Wholesale & Operations financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Revenues
|
|
936
|
|
910
|
|
2.9
|
%
|
Of which: iBasis (incl. KGCS)
|
|
219
|
|
|
|
|
|
Of which: Real Estate
|
|
87
|
|
91
|
|
-4.4
|
%
|
Other income
|
|
17
|
|
1
|
|
>100
|
%
|
Of which: iBasis
|
|
|
|
|
|
|
|
Of which: Real Estate
|
|
11
|
|
1
|
|
>100
|
%
|
Revenues and other income
|
|
953
|
|
911
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
743
|
|
783
|
|
-5.1
|
%
|
Of which: depreciation, amortization and
impairments
|
|
258
|
|
354
|
|
-27
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
468
|
|
482
|
|
-2.9
|
%
|
Of which: iBasis
|
|
6
|
|
|
|
|
|
Of which: Real Estate
|
|
48
|
|
42
|
|
14
|
%
|
EBITDA margin
|
|
49.1
|
%
|
52.9
|
%
|
|
|
Revenues up
4.6% to EUR 953m in Q1 due to iBasis
Revenues and other income
increased by EUR 42m to EUR 953m, which was mainly the result of the
consolidation of
iBasis from October 1, 2007 (including KGCS), partly offset by the
continued line loss in
Consumer and Business. Other income amounted
to EUR 17m following a EUR 11m book gain on the sale
of real estate and a EUR 6m
additional book gain on the sale of KGCS to iBasis.
EBITDA down
2.9%
EBITDA decreased by EUR 14m
compared to Q1 2007 due to the decline in traditional voice, partly offset by
increased book
gains (EUR 17m versus EUR 1m in the prior year), non recurring VoIP costs (EUR
25m in Q1
2007, of which half relating to Wholesale & Operations) and
cost savings from FTE reductions. EBITDA
margin decreased by 3.8%
points, mainly due to lower margins at iBasis (consolidated as of October 1,
2007). In Q1,
depreciation and amortization was lower, which is the effect of the expiration
of accelerated
depreciation and amortization (EUR 76m) of the
Telfort network in Q1 2007, partly offset by accelerated
depreciation
costs of traditional (copper) infrastructure of EUR 19m in Q1 2008.
Operating
review
All-IP
network rollout on track
The All-IP rollout is on
track to achieve the FttC and FttH ambitions in relation to the Consumer
segment
and to FttO in the Business segment. Capital expenditure within
Wholesale & Operations was EUR 146m in
the quarter, up from EUR 103m
in the first quarter of 2007. Investments in fiber construction ahead of the
commercial
rollout in the Consumer and Business segments are the main cause for this step
up.
Best quality
wireless network in the Netherlands
This quarter, KPN upgraded
the speed of its HSDPA network with population coverage of over 95%
from 1.8 Mb/s to
3.6 Mb/s nationwide. Meanwhile, KPN was the first mobile operator in the
Netherlands to
introduce HSUPA. As at the end of Q1 2008, KPNs
DVB-H coverage amounted to 70%. The commercial
launch of DVB-H (mobile
digital TV services) is anticipated for mid 2008.
Sale of top
real estate portfolio in progress
As part of the drive to
generate a total of EUR 1bn of cash inflow from the sale of surplus real estate
in the
period 2007 to 2011, KPN intends to sell its portfolio of top real
estate first. This portfolio contains 34
buildings at prime locations
in the Netherlands. The information memorandum has been sent to potential
buyers and KPN
has already received strong interest. The sale is planned for mid 2008 and is
expected to
generate proceeds of about EUR 300m.
9
Good
progress in efficiency improvements and cost reductions
During the first quarter of
2008, good progress was made in efficiency improvements and cost reduction
programs. Among
other factors, this is reflected in a further 186 FTE reduction within Wholesale &
Operations.
iBasis Q1
2008 results published on April 28, 2008
iBasis published its Q1 2008 results on April 28,
2008. For a more extensive description of the financial and
operating review in Q1 2008, please refer to the
iBasis press release available at www.ibasis.com.
E-Plus
Financial
review
E-Plus financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Service revenues
|
|
705
|
|
660
|
|
6.8
|
%
|
Hardware and other revenues
|
|
50
|
|
38
|
|
32
|
%
|
Revenues and other income
|
|
755
|
|
698
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
634
|
|
623
|
|
1.8
|
%
|
Of which: depreciation, amortization and
impairments
|
|
163
|
|
178
|
|
-8.4
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
284
|
|
253
|
|
12
|
%
|
EBITDA margin
|
|
37.6
|
%
|
36.2
|
%
|
|
|
Revenues and
other income up 8.2% in Q1
Revenues and other income at
E-Plus increased by 8.2% in Q1 or EUR 57m y-on-y to EUR 755m, due to the
continued
success of the challenger strategy and including the acquisition effect of SMS
Michel (EUR 18m).
The negative MTA impact on Q1 revenues
amounted to EUR 11m.
EBITDA up
12%, margin almost 38% in Q1 2008
EBITDA in Q1 2008 amounted to
EUR 284m, up 12% or EUR 31m compared to Q1 2007 mainly due to the
continued focus
on costs. Subscriber acquisition and retention costs went down from EUR 84 in
Q1 2007 to
EUR 67 in Q1 2008 resulting in a strong EBITDA margin of 37.6% in Q1.
Operating
review
Customer
base exceeds 15 million customers
Net additions in the first
quarter amounted to 576k through continued growth in new brands on the E-Plus
network with a
very large contribution from MVNOs. The total customer base at the end of Q1
was 15.4
million, up 17% compared to Q1 2007. New brands now represent 55% of the
total customer base, or 8.4
million customers.
Service
revenue growth accelerated to 6.8% despite MTA cuts
Despite further MTA cuts
since December 1, 2007, service revenue growth for the quarter was 6.8%
compared to Q1
2007, mainly due to the contribution of the record net additions in 2007.
Service revenue
market share increased by 1.2%-points y-on-y
to 14.7%.
Selective 3G
rollout following demand
E-Plus share of non-voice
continues to rise, from 19% in Q1 2007 to 22% in Q1 2008. E-Plus is executing a
selective 3G
rollout in Germany in areas where demand is clustered. The related capital
expenditure is
included in KPNs guidance given at the
beginning of the year. By the end of Q1, the nationwide indoor
coverage through
2G had been enhanced to 83%, reaching the same level as competition.
10
Lower
distribution costs through expansion of captive channels
The distribution strategy of
E-Plus is focused on expanding the E-Plus branch network from 500 to over 700
locations by the
end of 2008. E-Plus is moving from more expensive dealers towards captive
channels. This
will be a key instrument to lowering the
SAC/SRC and towards more effective targeting of high value
postpaid
customers. Key milestones in pursuit of this objective are the acquisition of
German retail chain
SMS Michel by KPN in Q1 2008, with
approximately 200 locations, followed in April by the takeover of
rental
agreements for more than 50 small sized shops from Tchibo at prime locations in
Germany. The
majority of these shops will be rebranded as
E-Plus in due course. With these acquisitions, E-Plus branch
network has
expanded to about 650 locations, while another 100 multi-network shops are
being operated
as SMS Michel.
BASE
Financial
review
BASE financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Service revenues
|
|
145
|
|
149
|
|
-2.7
|
%
|
Hardware and other revenues
|
|
5
|
|
3
|
|
67
|
%
|
Revenues and other income
|
|
150
|
|
152
|
|
-1.3
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
123
|
|
119
|
|
3.4
|
%
|
Of which: depreciation, amortization and impairments
|
|
27
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
54
|
|
60
|
|
-10
|
%
|
EBITDA margin
|
|
36.0
|
%
|
39.5
|
%
|
|
|
Revenue and
other income down 1.3%
Revenues and other income at
BASE in Q1 2008 were down 1.3% or EUR 2m to EUR 150m, following steep
cuts in mobile
termination rates and cuts in roaming charges.
EBITDA
decrease mainly due to regulation
EBITDA decreased in Q1 2008
by 10% or EUR 6m to EUR 54m compared to Q1 2007. The EBITDA margin for
Q1 2008 was
36.0%, compared to 39.5% for Q1 2007. The lower EBITDA was a direct result of
the impact of
regulation (MTA impact of EUR 9m) and roaming
cuts, combined with the increased operating expenses
related to Allo Telecom, the
distribution network of 51 stores acquired in Q3 2007.
Operating
review
Q1
performance in line with prior quarters: BASE continues to deliver customer
growth
In the first quarter of 2008,
BASE added another 137k customers to its client base, predominantly in the
prepaid and MVNO
segment. The number of customers at the end of the quarter totaled 3 million, up
21%
compared to Q1 2007.
Service
revenues down EUR 4m due to MTA cuts
Service revenues decreased by
2.7% to EUR 145m (Q1 2007: EUR 149 m), an improvement from the 5.7%
y-on-y decline
in Q4 2007. These results do not yet reflect the positive draft decision of
BIPT on April 11,
2008, setting new MTA tariffs retrospectively
from January 1, 2008. The April 11 BIPT draft decision
followed the
judgment of the Brussels Court of Appeal which suspended the BIPT decision of December 18,
2007. Please
refer to the paragraph on Regulatory developments for further information.
Growth in
data traffic
BASE has continued to grow
its data revenues and enhance its data offering. Initiatives such as the
offering
of free data traffic and the new reduced pricing for data roaming (equal
pricing for national traffic and
international roaming traffic
on the Challenger networks in ten European countries) have proven to be
successful.
11
Mobile Wholesale NL
Financial review
Mobile Wholesale NL financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Service revenues
|
|
84
|
|
82
|
|
2.4
|
%
|
Hardware and other revenues
|
|
1
|
|
1
|
|
|
|
Revenues and other income
|
|
85
|
|
83
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
56
|
|
61
|
|
-8.2
|
%
|
Of which: depreciation, amortization and
impairments
|
|
7
|
|
6
|
|
17
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
36
|
|
28
|
|
29
|
%
|
EBITDA margin
|
|
42.4
|
%
|
33.7
|
%
|
|
|
Continued
organic growth, revenues up 2.4%
Revenues and other income at
Mobile Wholesale NL increased in Q1 by EUR 2m y-on-y. The business
continues to
show profitable organic growth in the face of tough competition, resulting in
continued price
pressure. MTA (EUR 2m) and roaming tariff
regulation had a negative impact on revenues compared to Q1
2007.
Strong
EBITDA increase of 29%, margin increased to 42% in Q1
EBITDA performance was strong
in Q1 with EBITDA of EUR 36m, up nearly 30% in Q1 2008. Of this increase,
6%-points were
caused by a one-off gain.
Operating
review
Continued
customer growth
In Q1 2008, the customer base
grew by only 8k customers, which was caused by high churn of inactive
prepaid users
(mainly in the ethnic segment), partly offset by postpaid customer growth. The
total
customer base amounts to 1.8 million customers. Competition in the
ethnic segment is increasing, but KPN
has strengthened its position
through the acquisition of a majority stake in Ortel Mobile (see the Financial
and operating
review of Mobile International Other).
New
wholesale partners gearing up for launch in Q2
KPN continued to sign up new
wholesale partners in Q1 2008, including Rabo Mobiel, an MVNO switching
to KPN from
Orange, and Solcon, a Dutch company already active in Internet and fixed
telecoms.
12
Mobile International - Other
Financial review
Mobile International - Other financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Service revenues
|
|
13
|
|
9
|
|
44
|
%
|
Hardware and other revenues
|
|
37
|
|
1
|
|
>100
|
%
|
Intercompany revenues
|
|
-12
|
|
-6
|
|
-100
|
%
|
Revenues and other income
|
|
38
|
|
4
|
|
>100
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
57
|
|
9
|
|
>100
|
%
|
Of which: depreciation, amortization and
impairments
|
|
6
|
|
1
|
|
>100
|
%
|
|
|
|
|
|
|
|
|
EBITDA
|
|
-13
|
|
-4
|
|
>100
|
%
|
EBITDA margin
|
|
n.m.
|
|
n.m.
|
|
|
|
Financials
driven by recent acquisitions
Revenues and EBITDA movement
reflect the recent acquisition of Tele2 Belgium, which strengthens the
distribution of
BASE, and the initial costs related to the launch of the MVNO in Spain.
Furthermore, KPNs
growing mobile service provider Sympac,
offering wireless services across markets to multinationals
through
partners, and YES Telecom, targeting the SME/SoHo segment through personalized
voice and data
propositions, have been consolidated in Mobile
International - Other since Q1 2008. Previously, they were
included in the
Business segment of KPN the Netherlands. For comparability purposes, the 2007
quarterly
and full year numbers have been restated. Please refer to Appendix H for
further details.
Operating
review
Continued
growth of Tele2 Mobile
Tele2 Belgiums mobile
propositions (prepaid Smart and postpaid Champion), that were launched in December 2007
through the BASE network, continue to do well. Based on the success of these
propositions Tele2 Belgium expects to launch more products to cover additional
market segments in the near future.
Successful
MVNO launch in Spain
KPN has set up a Spanish
MVNO, based on a proprietary international platform, to leverage its wholesale
models and
multi-brand strategy outside its current footprint. Consumer demand for KPNs
international
Simyo brand, launched at the end of January in
the Spanish market, meets expectations. In addition,
several wholesale partners
such as Euphony and Bankinter have launched their wireless services in
cooperation with
KPN. KPN expects to launch further partnerships with locally and
internationally
established companies in the near future.
Based on the success of the wholesale business model in all its
markets, KPN
continues to explore opportunities in other European markets to leverage its
wholesale
partnerships.
Acquisition
of Blau and Ortel to strengthen distribution in ethnic and discount segment
The acquisition of a majority
stake in Ortel Mobile, a leading provider of prepaid services to the ethnic
segment through
KPNs networks in the Netherlands, Germany and Belgium, has been approved by
the
Dutch and German competition authorities and was closed on April 22,
2008.
On March 26, 2008 KPN
announced that it had entered into an agreement to acquire Blau Mobilfunk, a
wholesale
partner of KPNs German mobile operator E-Plus, focusing on the discount and
ethnic market
segments via own and partner brands. Through
the acquisition, E-Plus will further strengthen its strategic
position in the
growing discount and ethnic segments in Germany. The transaction is subject to
approval
from the German competition authority.
13
Other activities
Financial and operating review
Other financial highlights
|
|
Q1 2008
|
|
Q1 2007
|
|
Change
|
|
(In
millions of euro unless indicated otherwise)
|
|
|
|
|
|
|
|
Revenues
|
|
2
|
|
1
|
|
100
|
%
|
Other income
|
|
19
|
|
5
|
|
>100
|
%
|
Revenues and other income
|
|
21
|
|
6
|
|
>100
|
%
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
29
|
|
13
|
|
>100
|
%
|
Of which: depreciation, amortization and
impairments
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
-7
|
|
-7
|
|
|
|
EBITDA margin
|
|
-33.3
|
%
|
n.m.
|
|
|
|
Revenues and
other income positively affected by release of a provision of EUR 20m
·
Revenues and
other income for the Other activities segment increased by EUR 15m compared to
Q1
2007 which was largely caused by the release of a provision regarding
the sale of a subsidiary in 2002.
·
In Q1 2007 EUR
4m was included in other income related to the additional book gain on the sale
of
Xantic.
·
Despite lower
headquarter costs, operating expenses increased as a result of higher
restructuring
costs together with lower management fee
charges to the operating companies.
14
Other
developments
Regulatory
developments
KPN applied
for delisting from New York, London and Frankfurt Stock Exchanges
In April, KPN delisted its
ADRs (American Depositary Receipts) from the New York Stock Exchange and its
ordinary shares
from the London Stock Exchange. The listing in Frankfurt will be terminated in
Q3 2008. In
order to allow investors to continue to buy and hold ADRs, KPN has
introduced a Level I ADR program on
the US over-the-counter
market. Following the delisting in New York on April 4, 2008 all reporting
obligations
under the Securities and Exchange Act for Sarbanes Oxley (SOx) have been
suspended.
However, KPN remains committed to high standards for corporate
governance, in line with the Dutch
Corporate Governance Code.
The positive elements from SOx will continue to form an integral part of
governance,
internal control and reporting.
Proposed MTA
tariff reductions in Belgium
BASE launched both suspension
and annulment proceedings against BIPTs decision of December 18, 2007
setting maximum
MTAs as from February 1, 2008. On April 4, 2008, the Court of Appeal
of Brussels
rendered a judgment suspending the BIPT decision of December 18,
2007 as regards the maximum tariffs
imposed, pending the outcome
of the annulment procedure. On April 11, 2008 BIPT published a new draft
decision for
consultation whereby BIPT proposes to set new MTA caps as of May 1, 2008
as follows:
In EUR/minute
|
|
May 1, 2008
|
|
July 1, 2008
|
|
|
|
|
|
|
|
Proximus
|
|
7.48
ct
|
|
6.56
ct
|
|
Mobistar
|
|
9.38
ct
|
|
8.21
ct
|
|
BASE
|
|
11.2
ct
|
|
10.41
ct
|
|
In its draft decision, BIPT
does not exclude a possible new revision during 2008. Operators could submit
comments to the
draft decision of BIPT until April 18, 2008.
MTA tariff
reductions in the Netherlands
On July 30, 2007, OPTA
published its decision for MTA tariffs in the Netherlands until 2010. All
mobile
operators have implemented the OPTA decision as of August 15, 2007.
UPC appealed against the decision
to the Dutch commercial court
(College van Beroep voor het Bedrijfsleven (CBb)). In a reaction to this
appeal, the
mobile operators also appealed to prevent reductions further than mandated by
OPTA. The
CBb decision is expected in Q2 2008.
Subsequent
events
AGM approved
final dividend 2007
At the AGM, held on April 15,
2008, a final dividend for 2007 of EUR 0.36 per share was approved. An
interim dividend
of EUR 0.18 per share had already been paid in August 2007. The final
net dividend was
paid on April 25, 2008, totaling EUR
543m, while dividend taxes will be paid in May 2008.
40.6 million
of outstanding shares cancelled on April 1, 2008
On April 1, 2008 KPN
concluded the cancellation of 40,579,700 ordinary shares which had been
repurchased as
part of the EUR 0.5bn share repurchase program in 2007. Following this cancellation,
KPN
has 1,802,902,513 shares outstanding as of April 1, 2008.
Dutch
Telecom Agency published the results of its investigation on UMTS networks on April 3,
2008
On April 3, 2008 the
Dutch governments Telecom Agency revealed the results of the supervision
activities
concerning the rollout obligations of UMTS. Because Telfort uses the KPN
network, Telfort operates within
the UMTS spectrum which
relates to the KPN UMTS license. Agentschap Telecom has expressed its
intention to
impose an order for periodic penalty payments on Telfort for a period of two
years, adding up
to a maximum of EUR 40m. KPN intends to
challenge any such order.
15
Compliance
Charter Handvest KPN en OPTA
On April 24, 2008 KPN
and OPTA signed a Compliance Charter Handvest KPN en OPTA containing
agreement on the
key elements of KPNs effective compliance organization and respective key
performance
indicators as well as procedures to improve the transparency of communications
between
OPTA and KPN, for example regarding interpretation issues.
General
Accounting
principles
These condensed consolidated
interim financial statements have been prepared in accordance with IAS 34,
Interim
Financial Reporting
. They do not include all of the information required
for full annual financial
statements and should be read
in conjunction with the 2007 Annual Report and Form 20-F. The applied
accounting
principles are in line with those as described in the 2007 Annual Report and Form 20-F.
The
2007 Annual Report and Form 20-F has been filed with the SEC on March 5,
2008. All figures in this
quarterly report are
unaudited and based on IFRS.
In Q1 2008 the new guidance
(IFRIC 14) changed the way pension scheme surpluses are accounted for. The
assets in KPNs
financial statements are not limited by the IFRIC interpretation. IFRIC 14
addresses how
entities should determine the limit placed by
IAS 19
Employee Benefits
on the
amount of a surplus in a
pension plan they can recognize as an asset, how
a minimum funding requirement affects that limit and
when a minimum funding
requirement creates an onerous obligation that should be recognized as a
liability in
addition to that otherwise recognized under IAS 19.
Safe harbor
Certain statements contained
in this quarterly report constitute forward-looking statements. These
statements may
include, without limitation, statements concerning future results of
operations, the impact
of regulatory initiatives on KPNs operations,
its and its joint ventures share of new and existing markets,
general industry
and macro-economic trends and KPNs performance relative thereto, and
statements
preceded by, followed by or including the words believes, expects, anticipates
or similar expressions.
These forward-looking statements rely on a
number of assumptions concerning future events and are
subject to
uncertainties and other factors, many of which are outside KPNs control that
could cause actual
results to differ materially from such
statements. A number of these factors are described (not
exhaustively) in
the 2007 Annual Report and Form 20-F.
All figures in this quarterly
report are unaudited and based on IFRS. This quarterly report contains a
number of
non-GAAP figures, such as EBITDA and free cash flow. These non-GAAP figures
should not be
viewed as a substitute for KPNs GAAP figures.
All market share information in this quarterly report is
based on
management estimates based on externally available information, unless
indicated otherwise.
KPN defines EBITDA as
operating result before depreciation and impairments of PP&E and
amortization
and impairments of intangible assets. Note
that KPNs definition of EBITDA deviates from the literal
definition of
earnings before interest, taxes, depreciation and amortization and should not
be considered
in isolation or as a substitute for analyses
of the results as reported under IFRS. In all cases, a reconciliation
of EBITDA and
the nearest GAAP measure (operating result) is provided. In the net debt/EBITDA
ratio, KPN
defines EBITDA as a 12 month rolling average excluding book gains and
restructuring costs, both over EUR
20m. For 2008 and subsequent
years, free cash flow is defined as cash flow from operating activities plus
proceeds from
real estate, minus capital expenditures (capex), being expenditures on PP&E
and software,
and excluding tax recapture at E-Plus.
Profile
KPN is the leading
telecommunications and ICT service provider in the Netherlands, offering
wireline and
wireless telephony, internet and TV to consumers
and end-to-end telecom and ICT services to business
customers. KPNs subsidiary
Getronics operates a global ICT services company with a market leading
position in the
Benelux, offering end-to-end solutions in infrastructure and network-related
IT. In Germany
and Belgium, KPN pursues a multi-brand
strategy in its mobile operations and holds number three market
positions
through E-Plus and BASE. KPN provides wholesale network services to third
parties and operates
an efficient IP-based infrastructure with
global scale in international wholesale through iBasis.
16
At March 31, 2008, KPN
served over 35 million customers, of which 27.5 million in wireless services,
5.3 million in
wireline voice, 2.4 million in broadband Internet and 0.6 million in TV. With
25,925 FTEs
(43,409 FTEs including Getronics), KPN posted revenues of EUR 3.6bn and
an EBITDA of EUR 1.2bn in Q1
2008. KPN was incorporated in
1989 and is listed on the Amsterdam and Frankfurt stock exchanges, having
recently
delisted from the New York and London stock exchanges.
17
Results 2008 for the first quarter, ending March 31,
2008
APPENDICES
Financial Statements
|
|
|
|
|
|
A)
|
|
Consolidated Income Statement
|
|
|
B)
|
|
Consolidated Balance Sheet
|
|
|
C)
|
|
Consolidated Cash Flow
Statement
|
|
|
D)
|
|
Consolidates Change in
Group Equity
|
|
|
E)
|
|
Other Disclosures
|
|
|
F)
|
|
Dutch wireless services
disclosure
|
|
|
G)
|
|
Impact of MTA tariff
reductions
|
|
|
H)
|
|
Restatements reported
figures 2007
|
|
|
I)
|
|
Operating result to EBITDA
|
|
|
J)
|
|
Noteworthy items
|
|
|
|
|
|
|
|
You will find more information
regarding the Key Operating Metrics on our website www.kpn.com/ir, section
Publications, Financial publications, Quarterly factsheets
18
Appendix
(A) Consolidated Income Statement
(In millions of euro, unless indicated otherwise)
|
|
Q1 2008
|
|
Q1 2007
|
|
|
|
|
|
|
|
Revenues
|
|
3,532
|
|
2,918
|
|
Other income
|
|
38
|
|
6
|
|
Revenues and other income
|
|
3,570
|
|
2,924
|
|
|
|
|
|
|
|
Own work capitalized
|
|
-24
|
|
-44
|
|
Cost of materials
|
|
249
|
|
207
|
|
Work contracted out and other expenses
|
|
1,260
|
|
1,047
|
|
Salaries and social security contributions
|
|
637
|
|
364
|
|
Depreciation, amortization and impairments
|
|
583
|
|
652
|
|
Other operating expenses
|
|
217
|
|
161
|
|
Total operating expenses
|
|
2,922
|
|
2,387
|
|
|
|
|
|
|
|
Operating result
|
|
648
|
|
537
|
|
|
|
|
|
|
|
Finance income
|
|
13
|
|
6
|
|
Finance costs
|
|
-169
|
|
-133
|
|
Other financial results
|
|
-9
|
|
-5
|
|
Share of profit of associates and joint ventures
|
|
-6
|
|
1
|
|
Profit before income tax
|
|
477
|
|
406
|
|
|
|
|
|
|
|
Income tax
|
|
-143
|
|
-93
|
|
Profit for the period
|
|
334
|
|
313
|
|
|
|
|
|
|
|
Profit attributable to minority shareholders
|
|
-1
|
|
|
|
Profit attributable to equity holders
|
|
335
|
|
313
|
|
|
|
|
|
|
|
Earnings per ordinary share/ADS, on a non
diluted basis (in EUR)
|
|
0.19
|
|
0.16
|
|
Earnings per ordinary share/ADS on a fully
diluted basis (in EUR)
|
|
0.19
|
|
0.16
|
|
19
Appendix (B) Consolidated Balance Sheet
ASSETS
|
|
March 31,
2008
|
|
December 31,
2007
|
|
(In millions of euro)
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
Intangible assets
|
|
|
|
|
|
Goodwill
|
|
5,843
|
|
5,781
|
|
Licenses
|
|
3,381
|
|
3,457
|
|
Software
|
|
393
|
|
410
|
|
Other intangibles
|
|
819
|
|
776
|
|
Total intangible assets
|
|
10,436
|
|
10,424
|
|
|
|
|
|
|
|
Property, plant & equipment
|
|
|
|
|
|
Land and buildings
|
|
790
|
|
793
|
|
Plant and equipment
|
|
5,925
|
|
6,070
|
|
Other tangible fixed assets
|
|
188
|
|
211
|
|
Assets under construction
|
|
847
|
|
792
|
|
Total property, plant & equipment
|
|
7,750
|
|
7,866
|
|
|
|
|
|
|
|
Investments in joint ventures and associates
|
|
21
|
|
27
|
|
Derivative financial instruments
|
|
9
|
|
11
|
|
Deferred tax assets
|
|
2,043
|
|
2,185
|
|
Trade and other receivables
|
|
191
|
|
197
|
|
Total non-current assets
|
|
20,450
|
|
20,710
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Inventories
|
|
148
|
|
150
|
|
Trade and other receivables
|
|
2,939
|
|
2,759
|
|
Available-for-sale financial assets
|
|
2
|
|
3
|
|
Cash and cash equivalents
|
|
968
|
|
1,148
|
|
Total current assets
|
|
4,057
|
|
4,060
|
|
|
|
|
|
|
|
Non-current assets and disposal groups held for
sale
|
|
12
|
|
27
|
|
|
|
|
|
|
|
TOTAL
|
|
24,519
|
|
24,797
|
|
20
Appendix (B) Consolidated Balance Sheet - continued
LIABILITIES
|
|
March 31, 2008
|
|
December 31, 2007
|
|
(In millions of euro)
|
|
|
|
|
|
GROUP EQUITY
|
|
|
|
|
|
Equity attributable to equity holders
|
|
4,609
|
|
4,490
|
|
Minority interests
|
|
27
|
|
28
|
|
Total group equity
|
|
4,636
|
|
4,518
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
Borrowings
|
|
9,310
|
|
9,454
|
|
Derivative financial instruments
|
|
495
|
|
329
|
|
Deferred tax liabilities
|
|
1,890
|
|
2,055
|
|
Retirement benefit obligations
|
|
1,162
|
|
1,198
|
|
Provisions for other liabilities and
charges
|
|
377
|
|
390
|
|
Other payables and deferred income
|
|
313
|
|
276
|
|
Total non-current liabilities
|
|
13,547
|
|
13,702
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other payables
|
|
3,863
|
|
3,897
|
|
Borrowings
|
|
2,067
|
|
2,301
|
|
Derivative financial instruments
|
|
45
|
|
28
|
|
Current tax liabilities
|
|
294
|
|
278
|
|
Provisions for other liabilities and
charges
|
|
67
|
|
73
|
|
Total current liabilities
|
|
6,336
|
|
6,577
|
|
|
|
|
|
|
|
Liabilities directly associated with
non-current assets and disposal groups classified as held for sale
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
24,519
|
|
24,797
|
|
21
Appendix (C) Consolidated Cash Flow Statement
(In millions of euro)
|
|
Q1 2008
|
|
Q1 2007
|
|
|
|
|
|
|
|
Profit before income tax
|
|
477
|
|
406
|
|
Finance costs net
|
|
165
|
|
132
|
|
Share of the profit of associates and joint
ventures
|
|
6
|
|
-1
|
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
|
Depreciation, amortization and impairments
|
|
583
|
|
652
|
|
Share-based compensation
|
|
2
|
|
3
|
|
Other income
|
|
-15
|
|
-6
|
|
Changes in provisions (excluding deferred
taxes)
|
|
-61
|
|
-65
|
|
|
|
|
|
|
|
Changes in working capital:
|
|
|
|
|
|
Inventories
|
|
14
|
|
3
|
|
Trade receivables
|
|
40
|
|
5
|
|
Prepayments and accrued income
|
|
-163
|
|
-133
|
|
Other current assets
|
|
-34
|
|
-35
|
|
Accounts payables
|
|
-63
|
|
-25
|
|
Accruals and deferred income
|
|
-28
|
|
-63
|
|
Current liabilities (excluding short-term
financing)
|
|
-40
|
|
20
|
|
Received dividends
|
|
|
|
|
|
Taxes received (paid)(
4)
|
|
-106
|
|
0
|
|
Interest paid
|
|
-129
|
|
-59
|
|
Net cash flow provided by operating
activities
|
|
648
|
|
834
|
|
|
|
|
|
|
|
Acquisition of subsidiaries, associates and
joint ventures
|
|
-52
|
|
|
|
Disposal of subsidiaries, associates and
joint ventures
|
|
4
|
|
15
|
|
Investments in intangible assets (excluding
software)
|
|
-9
|
|
|
|
Disposal of intangibles
|
|
2
|
|
|
|
Investments in property, plant &
equipment and software(
5)
|
|
-356
|
|
-276
|
|
Disposal of property, plant &
equipment and software
|
|
14
|
|
|
|
Other changes and disposals
|
|
|
|
|
|
Net cash flow used in investing activities
|
|
-397
|
|
-261
|
|
|
|
|
|
|
|
Share repurchases
|
|
-199
|
|
-199
|
|
Share repurchases for option plans
|
|
|
|
|
|
Dividends paid
|
|
|
|
|
|
Exercised options
|
|
2
|
|
3
|
|
Proceeds from borrowings
|
|
130
|
|
|
|
Repayments of borrowings
|
|
-429
|
|
-266
|
|
Other changes in interest-bearing current
liabilities
|
|
|
|
|
|
Net cash flow used in financing activities
|
|
-496
|
|
-462
|
|
|
|
|
|
|
|
Changes in cash and cash equivalents
|
|
-245
|
|
111
|
|
|
|
|
|
|
|
Net Cash and cash equivalents at beginning
of period
|
|
662
|
|
429
|
|
Changes in cash and cash equivalents
|
|
-245
|
|
111
|
|
Exchange rate differences
|
|
-2
|
|
|
|
Net Cash and cash equivalents at end of
period
|
|
415
|
|
540
|
|
Add: Debit cash balances
|
|
553
|
|
385
|
|
Cash and cash equivalents at end of period
|
|
968
|
|
925
|
|
Of which classified as held for sale
|
|
|
|
|
|
(4)
Of which EUR 46m related to the tax recapture
at E-Plus
(5)
Of which investments
related to software (2008 Q1: EUR 78m, 2007 Q1: EUR 48m)
22
Appendix (D) Consolidated
Statement of Changes in Group Equity
|
|
Attributable to
|
|
Minority
|
|
Total Group
|
|
(In millions of euro, except for number of shares)
|
|
equity holders
|
|
Interests
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2007
|
|
4,195
|
|
1
|
|
4,196
|
|
|
|
|
|
|
|
|
|
- Cash flow hedges, net of taxes
|
|
11
|
|
|
|
11
|
|
- Currency translation adjustments
|
|
|
|
|
|
|
|
Net income recognized directly in equity
|
|
11
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
- Profit for the year
|
|
313
|
|
|
|
313
|
|
Total recognized income up to
March 31, 2007
|
|
324
|
|
|
|
324
|
|
|
|
|
|
|
|
|
|
- Share-based compensation
|
|
3
|
|
|
|
3
|
|
- Tax on share-based compensation
|
|
4
|
|
|
|
4
|
|
- Exercised options
|
|
3
|
|
|
|
3
|
|
- Shares repurchased (including for option
plans and repurchase cost)
|
|
-137
|
|
|
|
-137
|
|
- Interest on dividend tax paid (net
effect)
|
|
-3
|
|
|
|
-3
|
|
- New consolidations / other
|
|
|
|
-1
|
|
-1
|
|
Total changes
|
|
-130
|
|
-1
|
|
-131
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2007
|
|
4,389
|
|
0
|
|
4,389
|
|
|
|
|
|
|
|
|
|
Number of issued shares as of
March 31, 2007
|
|
1,928,551,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of outstanding
shares during the period January 1, 2007 up to March 31, 2007
(excluding
the average number of repurchased shares and shares for option plans)
|
|
1,907,908,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2008
|
|
4,490
|
|
28
|
|
4,518
|
|
|
|
|
|
|
|
|
|
- Cash flow hedges, net of taxes
|
|
-3
|
|
|
|
-3
|
|
- Currency translation adjustments
|
|
-4
|
|
|
|
-4
|
|
Net income recognized directly in equity
|
|
-7
|
|
|
|
-7
|
|
|
|
|
|
|
|
|
|
- Profit attributable to equity holders
|
|
335
|
|
-1
|
|
334
|
|
Total recognized income up to
March 31, 2008
|
|
328
|
|
-1
|
|
327
|
|
|
|
|
|
|
|
|
|
- Share-based compensation
|
|
2
|
|
|
|
2
|
|
- Tax on share-based compensation
|
|
|
|
|
|
|
|
- Exercised options
|
|
2
|
|
|
|
2
|
|
- Shares repurchased (including for option
plans and repurchase cost)
|
|
-213
|
|
|
|
-213
|
|
- Interest on dividend tax paid (net
effect)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- New consolidations
|
|
|
|
|
|
|
|
Total changes
|
|
-209
|
|
|
|
-209
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2008
|
|
4,609
|
|
27
|
|
4,636
|
|
|
|
|
|
|
|
|
|
Number of issued shares as of
March 31, 2008(
6)
|
|
1,843,482,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of outstanding
shares during the period from January 1, 2008 up to March 31, 2008
(excluding
the average number of repurchased shares and shares for option plans)
|
|
1,786,449,039
|
|
|
|
|
|
(6)
On April 1, 2008 KPN cancelled 40,579,700
shares repurchased under the 2007 repurchase program. After cancellation of these shares, the total number of
issued shares amounts to 1,802,902,513.
23
Appendix (E) Other Disclosures
Business
combinations
During the period to March 31,
2008, KPN acquired companies and activities, which qualify as business
combinations under IFRS. Consequently, the
provisions of IFRS 3 are to be applied for those acquisitions. The acquisitions in Q1 2008 were SMS Michel
Communication GmbH, ApplicationNet BV, Gemnet CSP BV and IPT Medical Services BV. KPN has performed
preliminary purchase price allocations for these acquisitions in aggregate as shown below:
(In
millions of euro)
|
|
|
|
|
|
|
|
Considerations paid for business
combinations (net of cash)
|
|
49
|
|
|
|
|
|
Total cash included in acquired companies
|
|
1
|
|
Total deferred consideration
|
|
34
|
|
Total gross consideration for business
combinations including transaction costs
|
|
84
|
|
Fair value net assets acquired (refer to
table below)
|
|
-20
|
|
|
|
|
|
Goodwill paid for new business combinations
|
|
64
|
|
Acquisitions
in Q1 2008: SMS Michel, ApplicationNet, IPT Medical Services and Gemnet CSP
After the German competition
authority Bundeskartellamt approved KPNs acquisition of SMS Michel
Communication GmbH with no remedies, KPN
completed the transaction with SMS Michel on February 12, 2008. KPN completed the transactions with
Gemnet CSP, ApplicationNet and IPT Medical Services on January 9, February 20 and February 29,
2008 respectively from which dates those companies have been consolidated. The assets and liabilities
arising from these acquisitions(7)
are as follows:
(In millions of euro)
|
|
Fair value as of acquisition date
|
|
|
|
|
|
Tradename
|
|
9
|
|
Customer relationships
|
|
4
|
|
Other intangibles
|
|
26
|
|
Property, plant and equipment
|
|
8
|
|
Other non-current assets
|
|
4
|
|
Inventories
|
|
11
|
|
Other current assets
|
|
27
|
|
Cash and cash equivalents
|
|
1
|
|
Provisions
|
|
-13
|
|
Long-term interest bearing debt
|
|
-11
|
|
Short-term interest bearing debt
|
|
|
|
Deferred tax liabilities
|
|
-11
|
|
Current liabilities
|
|
-35
|
|
Net assets at fair value at acquisition
date
|
|
20
|
|
Total consideration paid
|
|
84
|
|
Goodwill
|
|
64
|
|
(7)
If these acquisitions had occurred on January 1,
2008, KPN estimates consolidated revenues would have been approximately EUR 22m higher and profit for
the year would have been unaffected.
24
Off-balance
sheet commitments
The off-balance sheet
commitments as of March 31, 2008, amounting to EUR 4.6bn, were EUR 0.3bn
higher
compared to those
as of December 31, 2007 (EUR 4.3bn) disclosed in the 2007 Annual Report
and Form 20-F. The
difference is mainly caused by increases in capital expenditure commitments of
EUR 0.1bn and purchasing
commitments of EUR 0.3bn, partly offset by a decrease in the rental and
operating lease contracts of EUR
0.1bn.
Appendix (F) Dutch wireless
services Disclosure
(In millions of euro)
|
|
Q1 2008
|
|
Q1 2007
|
|
|
|
|
|
|
|
Service revenues
|
|
704
|
|
733
|
|
- Consumer Segment
|
|
394
|
|
416
|
|
- Business Segment
|
|
226
|
|
235
|
|
- Mobile Wholesale NL
|
|
84
|
|
82
|
|
|
|
|
|
|
|
SAC/SRC
(in euro)
|
|
|
|
|
|
- Consumer Segment
|
|
142
|
|
129
|
|
- Business Segment
|
|
366
|
|
288
|
|
Appendix (G) Impact of MTA
tariff reductions
|
|
Q1 2008
|
|
Additional decline compared to the same period last year
|
|
Revenues and
other income
|
|
EBITDA/Operating
result
|
|
(In millions of euro)
|
|
|
|
|
|
- E-Plus
|
|
-11
|
|
-6
|
|
- BASE
|
|
-12
|
|
-9
|
|
- Mobile Wholesale NL
|
|
-2
|
|
-2
|
|
Total Mobile International
|
|
-25
|
|
-17
|
|
|
|
|
|
|
|
- Consumer
|
|
-13
|
|
-7
|
|
- Business
|
|
-6
|
|
-1
|
|
- Getronics
|
|
|
|
|
|
- Wholesale & Operations (incl.
iBasis)
|
|
-4
|
|
|
|
Total KPN The Netherlands
|
|
-23
|
|
-8
|
|
|
|
|
|
|
|
Intercompany eliminations
|
|
5
|
|
|
|
|
|
|
|
|
|
KPN Consolidated
|
|
-43
|
|
-25
|
|
25
Appendix (H) Restatements
reported figures 2007
Organizational structure changed
in Q1 2008
·
Reorganization relates to Business segment only
·
Impact on Mobile International and Wholesale & Operations
·
No impact on total group level
As from January 1, 2008, the Business segment
operates with an organizational structure that is more
aligned with KPNs strategy and increases customer focus. The Business
segment now operates along three business lines:
·
Infrastructure Services
: connectivity, wireline and wireless services;
·
ICT Services
: all managed
services for voice and data. Housing and hosting is also part of ICT Services;
·
Corporate Solutions
: workspace
management and end-to-end ICT solutions for top 500 clients.
As a result of the new structure, we have
changed our reporting format along these business lines. Please
refer to the Q1 2008 Facts and figures first
quarter 2008 on www.kpn.com/ir for further details.
|
|
Revenues and other income
|
|
EBITDA
|
|
(In millions of euro)
|
|
Old
reporting
|
|
New
reporting
|
|
Change
|
|
Old
reporting
|
|
New
reporting
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Consumer
|
|
4,133
|
|
4,133
|
|
|
|
707
|
|
707
|
|
|
|
- Business
|
|
3,382
|
|
3,293
|
|
-89
|
|
759
|
|
751
|
|
-8
|
|
- Getronics
|
|
488
|
|
488
|
|
|
|
23
|
|
23
|
|
|
|
- Wholesale
& Operations
|
|
3,870
|
|
3,841
|
|
-29
|
|
1,995
|
|
2,017
|
|
22
|
|
- Other (incl.
intercompany)
|
|
-2,860
|
|
-2,770
|
|
90
|
|
-5
|
|
-7
|
|
-2
|
|
Total
KPN the Netherlands
|
|
9,013
|
|
8,985
|
|
-28
|
|
3,479
|
|
3,491
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- E-Plus
|
|
2,963
|
|
2,963
|
|
|
|
1,113
|
|
1,113
|
|
|
|
- BASE
|
|
613
|
|
613
|
|
|
|
230
|
|
230
|
|
|
|
- Mobile
Wholesale NL
|
|
344
|
|
344
|
|
|
|
129
|
|
129
|
|
|
|
- Other (incl.
intercompany)
|
|
40
|
|
57
|
|
17
|
|
-6
|
|
-18
|
|
-12
|
|
Total
Mobile International
|
|
3,960
|
|
3,977
|
|
17
|
|
1,466
|
|
1,454
|
|
-12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
activities
|
|
10
|
|
10
|
|
|
|
-45
|
|
-45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany
|
|
-351
|
|
-340
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KPN
Group
|
|
12,632
|
|
12,632
|
|
|
|
4,900
|
|
4,900
|
|
|
|
26
Old reporting format
Revenues and other income
(in millions of euro)
Corporate
Solutions
|
|
585
|
|
- End-to-end ICT
services
|
|
17
|
%
|
- Outsourcing
services
|
|
|
|
|
|
Voice
Wireline
|
|
1,028
|
|
- Access,
originating traffic
|
|
30
|
%
|
- Traditional,
VoIP
|
|
|
|
|
|
Wireless
Services
|
|
916
|
|
- Originating,
terminating voice
|
|
27
|
%
|
- Data services
|
|
|
|
|
|
Network
Services
|
|
776
|
|
- Connectivity
|
|
23
|
%
|
- Housing,
hosting services
|
|
|
|
|
|
Application
services
|
|
477
|
|
- Installation,
servicing (IP) PBX
|
|
14
|
%
|
- Managed
services
|
|
|
|
|
|
Other
|
|
-400
|
|
- Sales force
|
|
|
|
- Narrowcasting
|
|
|
|
- Intercompany
|
|
|
|
|
|
|
|
Business
|
|
3,382
|
|
New reporting format
Revenues and other income
(in millions of euro)
1)
Infrastructure Services
|
|
2,552
|
|
- Voice wireline
|
|
77
|
%
|
-
Data, network services
|
|
Of which:
|
|
|
|
-
Wireless revenues
|
|
870
|
|
|
|
|
|
2) ICT
Services
|
|
539
|
|
- Installation,
servicing (IP) PBX
|
|
16
|
%
|
- Housing,
hosting services
|
|
- Narrowcasting
|
|
|
|
|
|
3)
Corporate Solutions
|
|
499
|
|
- End-to-end ICT
services
|
|
15
|
%
|
- Outstanding
|
|
|
|
|
|
Other
|
|
-297
|
|
- Sales force
|
|
|
|
- Intercompany
|
|
|
|
|
|
|
|
Business
|
|
3,293
|
|
Appendix (I) Operating result to EBITDA
|
|
Q1 2008
|
|
Q1 2007
|
|
|
|
Operating
|
|
|
|
|
|
Operating
|
|
|
|
|
|
(In millions of euro)
|
|
Result
|
|
DA &
I(8)
|
|
EBITDA
|
|
Result
|
|
DA &
I
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Consumer
|
|
129
|
|
65
|
|
194
|
|
127
|
|
54
|
|
181
|
|
- Business
|
|
163
|
|
27
|
|
190
|
|
169
|
|
25
|
|
194
|
|
- Getronics
|
|
1
|
|
23
|
|
24
|
|
|
|
|
|
|
|
-
Wholesale & Operations (incl. iBasis)
|
|
210
|
|
258
|
|
468
|
|
128
|
|
354
|
|
482
|
|
- Other
|
|
-5
|
|
6
|
|
1
|
|
-5
|
|
7
|
|
2
|
|
Total
KPN The Netherlands
|
|
498
|
|
379
|
|
877
|
|
419
|
|
440
|
|
859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- E-Plus
|
|
121
|
|
163
|
|
284
|
|
75
|
|
178
|
|
253
|
|
- BASE
|
|
27
|
|
27
|
|
54
|
|
33
|
|
27
|
|
60
|
|
- Mobile
Wholesale NL
|
|
29
|
|
7
|
|
36
|
|
22
|
|
6
|
|
28
|
|
- Other
|
|
-19
|
|
6
|
|
-13
|
|
-5
|
|
1
|
|
-4
|
|
Total
Mobile International
|
|
158
|
|
203
|
|
361
|
|
125
|
|
212
|
|
337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
activities
|
|
-8
|
|
1
|
|
-7
|
|
-7
|
|
|
|
-7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KPN
Group
|
|
648
|
|
583
|
|
1,231
|
|
537
|
|
652
|
|
1,189
|
|
(8)
Depreciation,
amortization and impairments
27
Appendix (J) Noteworthy
items
(In millions of euro)
|
|
Q1 2008
|
|
Q1 2007
|
|
|
|
|
|
|
|
Revenue effect
MTA
|
|
-43
|
|
-31
|
|
EBITDA effect
MTA
|
|
-25
|
|
-14
|
|
Book gain on
sale of subsidiaries
|
|
6
|
|
4
|
|
Book gain on
sale of real estate
|
|
11
|
|
1
|
|
Additional costs
to solve VoIP issues
|
|
|
|
-25
|
|
Restructuring
charges
|
|
-9
|
|
-9
|
|
Depreciation
effect Telfort network integration
|
|
|
|
-19
|
|
Amortization
effect Telfort network integration
|
|
|
|
-57
|
|
Accelerated
depreciation traditional (copper) network
|
|
-19
|
|
|
|
28
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
|
KONINKLIJKE KPN N.V.
|
|
|
Dated: May 5, 2008
|
By:
|
/s/ MICHEL HOEKSTRA
|
|
|
Michel
Hoekstra
|
|
|
Legal Counsel
|
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