Koninklijke KPN (KPN) Q1 2025 earnings summary

Executive summary

• Group service revenue grew 3.8% year-over-year, with all segments contributing and 0.7% from Youfone.

• Adjusted EBITDA after leases (AL) rose 4.7% year-over-year, with contributions from Youfone and Althio.

• Free Cash Flow declined 17% year-over-year due to higher interest, tax payments, and working capital phasing, but is expected to recover in H2.

• Fiber footprint expanded by 100,000 homes, now covering 64% of Dutch households; mobile network received highest global score from Umlaut.

• Upgraded 2025 outlook and business resilience reiterated following Althio consolidation.

Financial highlights

• Adjusted revenues rose 3.0% year-over-year to €1,418m; service revenues up 3.8% to €1,319m.

• Adjusted EBITDA AL margin improved to 44.7% (+72bps year-over-year).

• Net profit decreased 3.5% year-over-year, mainly due to one-off Althio transaction costs.

• Operational Free Cash Flow grew 12% year-over-year to €340m.

• Capex was €294m, down €8m year-over-year.

Outlook and guidance

• 2025 guidance: service revenue growth ~3%, adjusted EBITDA AL >€2,600m, Capex ~€1.25bn, Free Cash Flow ~€920m.

• 2027 ambitions: ~3% CAGR in service revenue and EBITDA AL, Capex <€1.0bn, ~7% CAGR in Free Cash Flow.

• Free Cash Flow expected to be back-end loaded, with stronger H2 performance.

• Share buyback program underway, targeting €250m for the year.