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 AL rose 4.7% year-over-year, supported by Youfone and Althio.

• Free cash flow declined 17%–70% 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; KPN maintains market leadership and two-thirds of retail base is on fiber.

• Upgraded 2025 outlook and ambitions reaffirmed following Althio consolidation; business considered resilient amid economic and geopolitical uncertainty.

• KPN's mobile network awarded highest global score by Umlaut.

Financial highlights

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

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

• Net profit decreased 3.5% to €169m, mainly due to one-off Althio transaction costs.

• Operational free cash flow grew 12% year-over-year to €340m, ahead of guidance.

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

Outlook and guidance

• 2025 guidance: adjusted EBITDA AL >€2.6bn, free cash flow ~€920m, CapEx stable at €1.25bn, service revenue growth ~3%.

• 2027 ambitions: service revenue and adjusted EBITDA AL CAGR ~3%, free cash flow CAGR ~7%, up to €1bn share buyback over 2024–2027.

• Free cash flow expected to be back-end loaded, with stronger H2 performance.

• Share buyback program underway, targeting €250m for the year; €34m repurchased in Q1 2025.