Koninklijke KPN (KPN) Q2 2025 earnings summary

Executive summary

• Group service revenues grew 3.7% year-on-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-on-year in Q2 2025, supported by IPR settlements, Althio integration, and underlying business growth.

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

• The company leads the Dutch fiber market, now covering two-thirds of the Netherlands, with nearly 80% of homes connected within the footprint.

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

Financial highlights

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

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

• Adjusted EBITDA AL margin improved by 30 basis points to 45.5% in Q2 2025.

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

• Operational Free Cash Flow in Q2 2025 was €372m (+27% year-on-year), with margin at 25.3%.

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 for FY 2025.

• Midterm ambitions (337 CAGR framework) reiterated: ~3% annual growth in service revenues and adjusted EBITDA AL, ~7% in Free Cash Flow through 2027.

• Regular dividend per share of €18.2 cents planned for 2025; €250m share buyback program at 93% completion.

• Capex expected to step down below €1.0bn post-fiber rollout by 2027.