Koninklijke Kpn Nv Net Income surged on 24.3% in 2016 while Revenue decreased on 2.9%
01 Feb 2017 • About Koninklijke Kpn Nv (
$0O8F) • By InTwits
Koninklijke Kpn Nv reported 2016 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: 2016 revenue growth was -2.9%, 5 years revenue CAGR was -12.2%
- Koninklijke Kpn Nv has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.8%. At the same time it's in pair with industry average of 12.2%.
- CAPEX is quite volatile: 126 in 2016, 165 in 2015, 136 in 2014, 105 in 2013, 518 in 2012
- The company has business model with low profitability: ROIC is at 7.1%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is 1.4x
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. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,308 | 8,443 | 7,328 | 7,006 | 6,801 | -2.9% |
| SG&A | | | 123 | 111 | | -100.0% |
| EBITDA | 3,346 | 2,883 | 2,866 | 2,324 | 2,429 | 4.5% |
| Net Income | 763 | -222 | -598 | 638 | 793 | 24.3% |
Balance Sheet
|
|---|
| Cash | 1,286 | 3,946 | 1,976 | 1,446 | 1,179 | -18.5% |
| Short Term Debt | 1,527 | 2,008 | 1,044 | 847 | 735 | -13.2% |
| Long Term Debt | 12,369 | 11,656 | 9,397 | 8,853 | 7,897 | -10.8% |
Cash flow
|
|---|
| Capex | 1,259 | 1,312 | 896 | 1,012 | 917 | -9.4% |
Ratios
|
|---|
| Revenue growth | -28.5% | -9.3% | -13.2% | -4.4% | -2.9% | |
| EBITDA growth | -34.9% | -13.8% | -0.6% | -18.9% | 4.5% | |
| EBITDA Margin | 35.9% | 34.1% | 39.1% | 33.2% | 35.7% | 2.5% |
| Net Income Margin | 8.2% | -2.6% | -8.2% | 9.1% | 11.7% | 2.6% |
| SG&A, % of revenue | | | 1.7% | 1.6% | | -1.6% |
| CAPEX, % of revenue | 13.5% | 15.5% | 12.2% | 14.4% | 13.5% | -1.0% |
| ROIC | 9.6% | 6.5% | 7.6% | 5.1% | 7.1% | 2.0% |
| ROE | 36.2% | -6.8% | -12.2% | 13.4% | 18.5% | 5.1% |
| Net Debt/EBITDA | 3.8x | 3.4x | 3.0x | 3.6x | 3.1x | -0.5x |
Revenue and profitability
The company's Revenue decreased on 2.9% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 33.2% to 35.7% in 2016.
Net Income marign increased on 2.6 pp from 9.1% to 11.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 13.5%. The company's CAPEX/Revenue decreased on 2.1 pp from 15.5% in 2013 to 13.5% in 2016. Average CAPEX/Revenue for the last three years was 13.4%.
Return on investment
The company operates at good ROE (18.48%) while ROIC is low (7.06%). ROIC increased slightly on 2.0 pp from 5.1% to 7.1% in 2016. ROE increased on 5.1 pp from 13.4% to 18.5% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.1x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 0.5x from 3.6x to 3.1x in 2016. Debt dropped on 11.0% in 2016 while cash dropped on 18.5% in 2016.
Appendix 1: Peers in Fixed Line Telecommunications
Below we provide Koninklijke Kpn Nv benchmarking against other companies in Fixed Line Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telefonica Sa ($TDE) | -0.8% | -8.5% | -23.8% | 26.4% | |
| Alternative Networks ($AN.) | | -0.4% | 17.5% | 9.2% | -7.5% |
| Syqic ($SYQ) | 37.6% | 20.5% | 126.5% | 9.2% | |
| Adept Telecom ($ADT) | | -4.1% | -0.8% | 5.8% | 30.9% |
| Verizon Communications Inc ($VZC) | | 4.1% | 5.4% | 3.6% | -4.3% |
| |
|---|
| Median (13 companies) | -0.5% | -1.6% | -0.8% | 0.0% | 1.1% |
|---|
| Koninklijke Kpn Nv ($0O8F) | | -9.3% | -13.2% | -4.4% | -2.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kt Corp ($KTCD) | 75.5% | 76.0% | 77.9% | 77.9% | 78.5% |
| Verizon Communications Inc ($VZC) | 60.1% | 62.8% | 60.7% | 60.1% | 59.2% |
| Telecom Egypt ($TEEG) | 41.4% | 41.9% | 44.2% | 41.6% | |
| Alternative Networks ($AN.) | 39.0% | 39.2% | 41.2% | 41.3% | 40.9% |
| Syqic ($SYQ) | 57.3% | 59.9% | 43.6% | 41.2% | |
| |
|---|
| Median (6 companies) | 49.4% | 50.9% | 43.9% | 41.5% | 50.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ooredoo Qsc ($ORDS) | 46.0% | 42.4% | 37.6% | 39.2% | 44.8% |
| Verizon Communications Inc ($VZC) | 25.6% | 40.3% | 28.4% | 37.3% | 34.1% |
| BT Group ($BT.A) | 31.2% | 32.0% | 31.9% | 33.5% | 33.4% |
| Rostelekom ($RKMD) | 39.7% | 39.0% | 33.0% | 33.4% | |
| Hellenic Telecom.Organization S.A. ($OTES) | 32.0% | 28.8% | 35.4% | 31.3% | |
| |
|---|
| Median (13 companies) | 32.0% | 32.0% | 31.7% | 29.1% | 27.4% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 35.9% | 34.1% | 39.1% | 33.2% | 35.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ooredoo Qsc ($ORDS) | 21.9% | 27.5% | 25.3% | 26.5% | 17.2% |
| Telecom Egypt ($TEEG) | 5.1% | 6.8% | 13.0% | 21.4% | |
| Rostelekom ($RKMD) | 31.7% | 23.6% | 19.3% | 21.1% | |
| Telefonica Sa ($TDE) | 15.2% | 17.0% | 19.1% | 18.7% | |
| Orange Polska Sa ($OPLD) | 16.6% | 16.9% | 17.6% | 16.9% | |
| |
|---|
| Median (13 companies) | 13.6% | 13.7% | 13.0% | 14.0% | 12.2% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 13.5% | 15.5% | 12.2% | 14.4% | 13.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BT Group ($BT.A) | 23.6% | 27.0% | 34.7% | 37.5% | 21.6% |
| Syqic ($SYQ) | 38.9% | 3.2% | 33.9% | 22.9% | |
| Alternative Networks ($AN.) | 35.2% | 33.7% | 28.5% | 20.2% | 15.2% |
| Verizon Communications Inc ($VZC) | 8.0% | 16.7% | 10.1% | 19.3% | 15.4% |
| O2 Czech Republic As ($O2CZ) | 11.8% | 11.7% | 7.2% | 14.5% | 26.8% |
| |
|---|
| Median (13 companies) | 11.2% | 9.7% | 8.7% | 8.2% | 15.4% |
|---|
| Koninklijke Kpn Nv ($0O8F) | 9.6% | 6.5% | 7.6% | 5.1% | 7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Telefonica Sa ($TDE) | 2.5x | 2.5x | 3.6x | 4.2x | |
| Verizon Communications Inc ($VZC) | 1.7x | 0.8x | 2.8x | 2.1x | 2.4x |
| Ooredoo Qsc ($ORDS) | 1.6x | 1.7x | 2.0x | 2.0x | 1.7x |
| Rostelekom ($RKMD) | 1.7x | 1.8x | 1.8x | 1.8x | |
| BT Group ($BT.A) | 1.7x | 1.6x | 1.6x | 1.6x | 2.2x |
| |
|---|
| Median (13 companies) | 1.6x | 1.1x | 1.4x | 1.2x | 1.1x |
|---|
| Koninklijke Kpn Nv ($0O8F) | 3.8x | 3.4x | 3.0x | 3.6x | 3.1x |
