Koninklijke KPN NV Q1 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I've got 2, please. Firstly on roaming, could you indicate how much roaming costs you as a percentage of EBITDA or revenues or in absolute terms, what the exposure here is? And if you are a net payer? So that was the first question. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 30, 2020 / 11:00AM, KPN.AS - Q1 2020 Koninklijke KPN NV Earnings Call The second question is just on potential for optimizing working capital. I mean this seems to have become more of a focus area for you now. And certainly, I mean the work we've done suggest that your supplier payment terms are -- have scope for improvement here. So is -- taking into account the potential headwinds from COVID, I mean is there a potential for you to do something on working capital to improve the cash conversion run rate?

Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Sorry. And on the business segment, I mean, is there a risk of -- I mean some of your peers have indicated that international calling traffic revenues have been significantly impacted.

Question: Usman Ghazi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Great. Just one follow-up on that. I mean you mentioned that in Q1, the FttH kind of headwind on working capital was around EUR 8 million. Could you give an indication, given the -- that you've indicated you're going to be spending EUR 300 million on FttH and accrued CapEx, what the working capital kind of impact of that would be this year?

Question: Roman Arbuzov - JP Morgan Chase & Co, Research Division - Analyst : I had 2, please. So the first one is just continuing the topic of customer losses, which you've already provided some very helpful color on. So the question is, with COVID environment, perhaps the customer starts to become somewhat more price-sensitive. So is this a concern for you at all? And also in this environment, presumably becomes harder for you to manage the Telfort broadband customer base migration as well. And in this light, what are the tools that you have at your disposal to become more competitive at the lower end of the market, especially if people are chasing basically attractive price deals? That's the first one. The second one is just a clarification on CapEx. I think the industry discussion so far in the context of coronavirus has been that CapEx is going to decline, mostly in the mobile side. I guess what we're hearing today is that you may actually increase CapEx, if I understood you correctly. I mean you do see opportunities in the fiber side to deploy more capital. So can you just elaborate a little bit more on that side? For example, do you mean to say that you will spend a bit less on mobile, increase your fiber spend, thereby, you'll keep your EUR 1.1 billion envelope? Or is there upside risk to CapEx so that you can take advantage of the fiber opportunity this year?

Question: Roman Arbuzov - JP Morgan Chase & Co, Research Division - Analyst : And sorry, and just a follow-up, where do these opportunities come from? Is it the fact that there is just more spare capacity in the construction sector? Is that the kind of current bottleneck that will be less of a factor going forward? And also the third-party partnerships in fiber, how big of an opportunity is that, please?