KPN: Q3 outperforms thanks to cost cutting

(CercleFinance.com) - On Wednesday the Dutch telecom operator KPN announced Q3 operating profit that is slightly down, albeit higher than expected, as the group continued to benefit from its cost-reduction program.


Operating profit ("Ebitda after leases") reached 598 million euros over Q3, compared with 599 million euros a year ago and 581 million euros expected by analysts.

Net profit decreased to 132 million euros, compared with 314 million euros in the third quarter.

Revenue declined by 5% to less than 1.3 billion euros, in line with the consensus.

The group, which is the sector leader in the Netherlands, reports a "limited" impact from the Covid crisis and says it has continued its cost reduction program, achieving some 44 million euros in savings over the quarter.

KPN, which reports that it has saved 256 million euros since the program was launched, is also confident that it will exceed its initial target.

At noon on Wednesday the KPN share is keeping afloat (+0.4%), while the European telecom index is down around 1%.


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