KPN Delivers on FY 2024 Outlook; On Track Towards Mid-Term Ambitions

KPN, the leading Dutch telecommunications provider, has delivered on its full-year 2024 outlook, demonstrating strong financial performance and commitment to its mid-term ambitions. The company's strategic focus on fiber rollout and connecting households, coupled with its dedication to sustainability and ESG initiatives, has positioned it well for future growth.

KPN's focus on fiber rollout and network expansion has been a significant driver of its financial success. In FY 2024, the company expanded its fiber footprint by connecting a record number of homes, leading the Dutch fiber market. This strategic investment has contributed to KPN's overall financial performance, with Group service revenues growing by 3.4% year-on-year (y-on-y) and adjusted EBITDA AL increasing by 3.6% y-on-y. The company's free cash flow (FCF) amounted to €900m in FY 2024, reflecting its strong financial health.



KPN's commitment to ESG initiatives has also been a crucial factor in its long-term prospects. The company's near-term and long-term emission reduction targets have been validated by the Science Based Targets initiative, demonstrating its dedication to responsible business practices and sustainability. KPN's focus on energy efficiency and emission reduction, along with its customer satisfaction and social responsibility efforts, has positioned it well for future growth and innovation.

Looking ahead, KPN expects to maintain its strong financial performance, with the following projections for 2025:

* Service revenue growth of approximately 3%
* Adjusted EBITDA AL of around €2,580m
* Capex of approximately €1.25bn
* Free cash flow (FCF) of around €910m

The company also plans to increase its dividend per share (DPS) by 7% to €18.2 cents and launch a new €250m share buyback program, returning all FCF to shareholders in 2025.

In conclusion, KPN's delivery on its FY 2024 outlook and commitment to its mid-term ambitions demonstrate the company's strong financial performance and dedication to sustainability and ESG initiatives. By focusing on fiber rollout, network expansion, and ESG goals, KPN is well-positioned for future growth and success in the competitive telecommunications market. Investors should monitor the company's progress towards its sustainability goals and its continued expansion of its fiber network to assess its long-term prospects.