Royal KPN NV said Wednesday that it swung to net profit for the fourth quarter of 2019, but it warned that its consumer segment is under pressure from competitors.
Net profit for the quarter to Dec. 31 was 84 million euros ($92.5 million) compared with a loss of EUR47 million in the year-earlier period, when KPN booked a one-time loss on the revaluation of its tax assets, the Dutch telecommunications company KPN, -7.42% . Analysts expected profit of EUR75 million, according to a consensus estimate provided by the company.
Revenue for the quarter fell 3.0% to EUR1.39 billion from EUR1.44 billion in the fourth quarter of 2018, KPN said. This was in line with a company-provided consensus forecast.
“KPN is active in a highly competitive environment within an evolving landscape, which is reflected in lower net adds in consumer and some pressure in mobile,” Chief Executive Joost Farwerck said.
Adjusted earnings before interest, taxes, depreciation and amortization after leases was down 1.6% at EUR561 million, falling short of a company-provided consensus forecast of EUR575 million.
For 2020, KPN guided for adjusted Ebitda after leases to be stable or grow slightly and said it is on track to deliver its 2019-21 savings program.
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