Koninklijke Kpn Nv Net Income jumped on 207% in 2015 while Revenue decreased on 4.4%
03 Feb 2016 • About Koninklijke Kpn Nv (
$0O8F) • By InTwits
Koninklijke Kpn Nv reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Koninklijke Kpn Nv is a company in decline: 2015 revenue growth was -4.4%, 5 years revenue CAGR was -12.1%
- Koninklijke Kpn Nv has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.6%. At the same time it's in pair with industry average of 12.3%.
- CAPEX is quite volatile: 165 in 2015, 136 in 2014, 105 in 2013, 518 in 2012, 675 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.1%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Koninklijke Kpn Nv ($0O8F) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,022 | 9,308 | 8,443 | 7,328 | 7,006 | -4.4% |
| SG&A | | | | 123 | 111 | -9.8% |
| EBITDA | 5,138 | 3,346 | 2,883 | 2,866 | 2,324 | -18.9% |
| Net Income | 1,549 | 763 | -222 | -598 | 638 | -206.7% |
Balance Sheet
|
|---|
| Cash | 990 | 1,286 | 3,946 | 1,976 | 1,446 | -26.8% |
| Short Term Debt | 1,458 | 1,527 | 2,008 | 1,044 | 847 | -18.9% |
| Long Term Debt | 11,641 | 12,369 | 11,656 | 9,397 | 8,853 | -5.8% |
Cash flow
|
|---|
| Capex | 1,584 | 1,259 | 1,312 | 896 | 1,012 | 12.9% |
Ratios
|
|---|
| Revenue growth | -2.3% | -28.5% | -9.3% | -13.2% | -4.4% | |
| EBITDA growth | -6.2% | -34.9% | -13.8% | -0.6% | -18.9% | |
| EBITDA Margin | 39.5% | 35.9% | 34.1% | 39.1% | 33.2% | -5.9% |
| Net Income Margin | 11.9% | 8.2% | -2.6% | -8.2% | 9.1% | 17.3% |
| SG&A, % of revenue | | | | 1.7% | 1.6% | -0.1% |
| CAPEX, % of revenue | 12.2% | 13.5% | 15.5% | 12.2% | 14.4% | 2.2% |
| ROIC | 16.8% | 9.6% | 6.5% | 7.6% | 5.1% | -2.5% |
| ROE | 48.2% | 36.2% | -6.8% | -12.2% | 13.4% | 25.5% |
| Net Debt/EBITDA | 2.4x | 3.8x | 3.4x | 3.0x | 3.6x | 0.6x |
Revenue and profitability
The company's Revenue decreased on 4.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 39.1% to 33.2% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign surged on 17.3 pp from -8.2% to 9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Koninklijke Kpn Nv had CAPEX/Revenue of 14.4%. Koninklijke Kpn Nv's CAPEX/Revenue increased slightly on 0.92 pp from 13.5% in 2012 to 14.4% in 2015. For the last three years the average CAPEX/Revenue was 14.1%.
Return on investment
The company operates at good ROE (13.35%) while ROIC is low (5.11%). ROIC decreased on 2.5 pp from 7.6% to 5.1% in 2015. ROE jumped on 25.5 pp from -12.2% to 13.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 4.2x. Net Debt / EBITDA surged on 0.6x from 3.0x to 3.6x in 2015. Debt decreased on 7.1% in 2015 while cash dropped on 26.8% in 2015.
Appendix 1: Peers in Fixed Line Telecommunications
Below you can find Koninklijke Kpn Nv benchmarking vs. other companies in Fixed Line Telecommunications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Syqic ($SYQ) | 190.6% | 37.6% | 20.5% | 126.5% | |
| Alternative Networks ($AN.) | | -2.1% | -0.4% | 17.5% | 9.2% |
| Telecom Egypt ($TEEG) | -3.4% | 1.6% | 11.0% | 9.2% | |
| Verizon Communications Inc ($VZC) | | 4.5% | 4.1% | 5.4% | 3.6% |
| Rostelekom ($RKMD) | 7.4% | -0.2% | -1.6% | 2.8% | |
| |
|---|
| Median (13 companies) | 3.5% | -0.8% | -1.6% | -0.8% | 1.8% |
|---|
| Koninklijke Kpn Nv ($0O8F) | | -28.5% | -9.3% | -13.2% | -4.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kt Corp ($KTCD) | 81.6% | 75.5% | 76.0% | 77.9% | 77.9% |
| Verizon Communications Inc ($VZC) | 58.6% | 60.1% | 62.8% | 60.7% | 60.1% |
| Telecom Egypt ($TEEG) | 45.0% | 41.4% | 41.9% | 44.2% | |
| Syqic ($SYQ) | 59.6% | 57.3% | 59.9% | 43.6% | |
| Alternative Networks ($AN.) | 38.1% | 39.0% | 39.2% | 41.2% | 41.3% |
| |
|---|
| Median (6 companies) | 51.8% | 49.4% | 50.9% | 43.9% | 50.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| O2 Czech Republic As ($O2CZ) | 41.6% | 39.1% | 38.6% | 41.0% | 29.9% |
| Ooredoo Qsc ($ORDS) | 45.9% | 46.0% | 42.4% | 37.6% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 33.0% | 32.0% | 28.8% | 35.4% | |
| Orange Polska Sa ($OPLD) | 39.2% | 34.3% | 30.1% | 33.2% | |
| Rostelekom ($RKMD) | 40.8% | 39.7% | 39.0% | 33.0% | |
| |
|---|
| Median (13 companies) | 32.2% | 32.0% | 32.0% | 31.7% | 26.0% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 39.5% | 35.9% | 34.1% | 39.1% | 33.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ooredoo Qsc ($ORDS) | 20.7% | 21.9% | 27.5% | 25.3% | |
| Rostelekom ($RKMD) | 28.0% | 31.7% | 23.6% | 19.3% | |
| Telefonica Sa ($TDE) | 14.5% | 15.2% | 17.0% | 19.1% | |
| Orange Polska Sa ($OPLD) | 17.5% | 16.6% | 16.9% | 17.6% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 14.2% | 11.7% | 14.8% | 15.4% | |
| |
|---|
| Median (13 companies) | 14.2% | 13.6% | 13.7% | 13.0% | 9.0% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 12.2% | 13.5% | 15.5% | 12.2% | 14.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| BT Group ($BT.A) | 23.3% | 23.6% | 27.0% | 34.7% | 37.5% |
| Syqic ($SYQ) | 64.3% | 38.9% | 3.2% | 33.9% | |
| Alternative Networks ($AN.) | 36.7% | 35.2% | 33.7% | 28.5% | 20.2% |
| Adept Telecom ($ADT) | 11.9% | 11.6% | 15.5% | 13.2% | 14.3% |
| Hellenic Telecom.Organization S.A. ($OTES) | 4.8% | 8.2% | 5.4% | 10.4% | |
| |
|---|
| Median (13 companies) | 11.2% | 11.2% | 9.7% | 8.7% | 16.9% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 16.8% | 9.6% | 6.5% | 7.6% | 5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Telefonica Sa ($TDE) | 3.0x | 2.5x | 2.5x | 3.6x | |
| Kt Corp ($KTCD) | 2.0x | 2.1x | 2.1x | 3.1x | 1.3x |
| Verizon Communications Inc ($VZC) | 1.4x | 1.7x | 0.8x | 2.8x | 2.1x |
| Ooredoo Qsc ($ORDS) | 1.7x | 1.6x | 1.7x | 2.0x | |
| Rostelekom ($RKMD) | 1.3x | 1.7x | 1.8x | 1.8x | |
| |
|---|
| Median (13 companies) | 1.4x | 1.6x | 1.1x | 1.4x | 1.1x |
|---|
| Koninklijke Kpn Nv ($0O8F) | 2.4x | 3.8x | 3.4x | 3.0x | 3.6x |
