July 26, 2018 / 6:19 AM / 25 days ago

UPDATE 1-Dutch telco KPN beats estimates with slight rise in core profit

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AMSTERDAM, July 26 (Reuters) - Dutch telecom company KPN on Thursday reported a slightly better-than-expected 1.3 percent rise in second-quarter core profits, as cost cuts compensated for lower revenues.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 577 million euros ($676.8 million). Analysts in a Reuters poll on average had expected the result to remain stable, at 567 million euros.

Sales fell 1.7 percent to 1.4 billion euros in the second quarter, as new European rules limiting roaming fees for the use of mobile phones abroad continued to bite, but were also better than the 1.38 billion euros predicted by analysts.

“We are well on track to deliver on our full-year outlook”, Chief Executive Maximo Ibarra said in a statement, as KPN held on to the expectation of a stable adjusted EBITDA in 2018.

KPN sold its international operations in recent years, and now fully focuses on the Dutch market, offering bundles of mobile telephone, internet and television services.

Although the number of customers buying multiple services continued to grow, sales on the consumer market fell by 2.5 percent in the second quarter, due to strong competition and lower roaming fees. Revenues of its business division were roughly stable.

KPN’s net income fell 15 percent to 137 million euros, as the company received less dividends on its 6.3 percent stake in Telefonica Deutschland.

$1 = 0.8526 euros Reporting by Bart Meijer; Editing by Gopakumar Warrier and Emelia Sithole-Matarise

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