Royal KPN, the Dutch telecommunications company, has announced a 6.2% increase in net profit for the third quarter, surpassing market expectations. The company has also reaffirmed its full-year adjusted Ebitda guidance.
Strong Quarter Results
For the third quarter, Royal KPN reported a net profit of 224 million euros ($237.2 million), exceeding last year's figure of EUR211 million and the consensus estimate of EUR200 million.
Royal KPN's adjusted earnings before interest, taxes, depreciation, and amortization (after leases) rose to EUR629 million from EUR618 million, with a consensus forecast of EUR624 million.
The company's adjusted revenue for the quarter stood at EUR1.36 billion, compared to EUR1.33 billion in the same period last year. Service revenue also experienced growth, reaching EUR1.28 billion from EUR1.23 billion.
Positive Outlook for the Full Year
Looking ahead, Royal KPN has restated its full-year guidance. The company expects adjusted Ebitda after leases to be around EUR2.41 billion, capital expenditure to reach EUR1.2 billion, and free cash flow to amount to EUR870 million.
Chief Executive Joost Farwerck expressed confidence in the company's performance, stating, "We continue to deliver positive results with our current 'Accelerate to Grow' strategy, with all segments contributing to sustainable service revenue growth." Farwerck added that Royal KPN remains on track to meet its full-year targets.
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