KPN Second Quarter Results

Wednesday, July 23rd, 2008
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KPN (Amsterdam:KPN) group revenues and other income were up 22% or EUR 650m to EUR 3.7bn, driven by acquisitions.

Continued growth in VoIP and TV

In VoIP, KPN is capturing more than its fair share of the market growth and the customer base is rapidly approaching 1 million. A strong 34% customer rise in VoIP is accompanied by a steady increase in KPN’s market share to approximately 40%. The roll-out of KPN’s TV services – Digitenne and Interactive TV – accelerated during the quarter with customer numbers reaching 636k. KPN signed a video-on-demand deal with Videoland. KPN’s digital TV market share increased from 19% in Q1 2008 to approximately 20%.

KPN The Netherlands (thousands):

                   Q2'08  Q1'08  Q4'07  Q3'07  Q2'07  Q1'07
                   -----  -----  -----  -----  -----  -----
TV subscribers       636    553    497    414    337    296

Wireless improving in Q2, with higher net adds

Wireless revenue trends are improving, aided by KPN recapturing its fair share of net additions as well as brisk growth in data services. Wireless service revenues in Q2 were down 0.7% compared to a 5.3% decline in Q1 2008. The customer base grew by 2.8% to 6.1 million, driven by the strong increase in post-paid customers (+ 9.2%), which now accounts for almost 44% of the total customer base. Postpaid net adds grew by more than 70% q-on-q. In June, KPN successfully launched a nationwide mobile TV service across DVB-H; first weeks show encouraging demand.

Fiber-to-the-Home: first homes connected

The first batch of FttH customers has been successfully activated. Commercial propositions have been
defined for voice, broadband and IPTV.

More: Earnings Release