Koninklijke KPN (KPN) Q2 2025 earnings summary

Executive summary

• Group service revenues grew 3.7% year-over-year in Q2 2025, with all segments contributing and strong commercial momentum in both fixed and mobile consumer markets.

• Adjusted EBITDA AL increased 6.4% year-over-year, supported by IPR settlements, Althio integration, and underlying business growth.

• Free Cash Flow for H1 2025 was €309m, down 15% year-over-year due to working capital phasing, higher interest, and tax payments, but a rebound is expected in H2.

• Fiber footprint expanded to cover two-thirds of Dutch households, with 66% household coverage and 78% of homes passed connected.

• Full-year 2025 outlook for adjusted EBITDA AL and Free Cash Flow was raised, reflecting strong operational and financial progress.

Financial highlights

• Adjusted revenues grew 5.8% year-over-year in Q2 2025, driven by service revenue growth, IPR, and Althio effects.

• Net profit declined by 7.6% year-over-year in Q2 2025, mainly due to one-off hedge accounting charges.

• Adjusted EBITDA AL margin increased to 45.5% in Q2 2025, up 30bps year-over-year.

• Operational Free Cash Flow in Q2 2025 increased 27% year-over-year to €372m, driven by higher EBITDA AL and lower Capex.

• Capex for H1 2025 was €592m, down 7.5% year-over-year, mainly due to timing of fiber payments.

Outlook and guidance

• Full-year 2025 guidance for adjusted EBITDA AL raised to over €2,630m and Free Cash Flow to over €940m, reflecting IPR settlements and solid business progress.

• Group service revenue growth target remains at about 3%, with Capex stable at ~€1.25bn.

• Midterm ambitions reiterated: ~3% CAGR in service revenues and adjusted EBITDA AL, ~7% CAGR in Free Cash Flow through 2027.

• Regular dividend per share for 2025 set at €18.2 cents; interim dividend of €7.3 cents to be paid on 1 August 2025.

• €250m share buyback for 2025 is 93% complete.