Further customer base growth in The Netherlands in Q2 2015
+31k net adds in broadband and +64k in IPTV
- +70k postpaid net adds in Consumer Mobile
- Consumer fixed-mobile bundles represent 26% of retail postpaid base (Q2 2014: 13%) and 21% of broadband base (Q2 2014: 10%)
Declining traditional services and lower mobile price levels impact performance in Business
Transforming Business segment to adjust cost base and benefit from growth opportunities in a rapidly changing market
Simplification program on track, approximately EUR 230m run-rate savings realized by end Q2 2015
Further improvement customer satisfaction; NPS increased across all segments
2015 outlook for adjusted EBITDA and free cash flow strengthened
- Adjusted revenues were down 3.8% y-on-y in Q2 2015. Stable Consumer revenues were still offset by the impact of the ongoing decline of the business market size
- Adjusted EBITDA increased by 1.5% y-on-y in Q2 2015 driven by customer base growth and positive impact of cost savings, partly offset by declining revenues in the Business segment
- Net profit declined y-on-y in Q2 2015 due to one-off impact release of pension provision in Q2 2014, partly offset by dividend received from Telefónica Deutschland in Q2 2015. Without these one-off effects net profit would have increased by EUR 59m y-on-y to EUR 50m
- Capex in Q2 2015 and first half of 2015 was 11% higher compared to last year due to different intrayear Capex phasing
- Strong improvement in free cash flow (excl. TEFD dividend) in Q2 2015 and first half of 2015 driven by lower interest payments in 2015, settlement of legal claims and an additional pension payment in the first half of 2014, and different intrayear phasing of working capital
Message from the CEO, Eelco Blok
“We are driving positive results through our strategy of delivering the best customer experience, by combining innovative services with high quality networks and simplicity.
We are witnessing good results in our Consumer segments with service revenue inflection in Consumer Mobile and increasing fixed-mobile penetration, but are not yet there in our Business segment. In a rapidly changing market, we are transforming the Business segment by simplifying our products, adjusting our cost base and pursuing selected growth opportunities. We have now reached agreement with the relevant works councils, which allows us to accelerate the FTE reduction program in the second half of the year.
The strong operational performance combined with strict cost discipline is translating into improving financial results. We have seen stabilized adjusted EBITDA earlier than anticipated and now expect adjusted EBITDA for the full year to be in line with 2014. Supported by lower interest payments, we expect strong free cash flow growth in 2015 which is the basis for our progressive shareholder remuneration policy."
Complete press release for download here.
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