KPN's Sustainable Digitization: A Path to Growth and Leadership

KPN, the leading telecommunications provider in the Netherlands, has published its Integrated Annual Report 2024, titled "Sustainably Connected." The report highlights the company's achievements in 2024 and its continued progress towards mid-term strategic and financial ambitions. KPN's commitment to sustainable digitization and renewable energy sources has not only aligned with its financial performance but also contributed to its growth and market leadership.

KPN's strategy of investing in networks and digitalization has been a key driver for its mid-term financial ambitions. The company aims to maintain solid service revenue and adjusted EBITDA growth, with a target of 3-3-7 (3% service revenue growth, 3% adjusted EBITDA growth, and 7% dividend per share growth) over the next three years. Over the next three years, KPN plans to invest more than €3 billion in its networks and the digitalization of the Netherlands, while delivering a strong return on capital employed.

One of the primary factors contributing to KPN's success is its record number of fiber homes connected. The company's investment in network infrastructure, optimized rollout process, and customer-centric approach have led to a significant increase in fiber connections. This growth has expanded KPN's customer base, particularly in the Consumer segment, driving postpaid and broadband base growth. The increase in fiber connections has also contributed to KPN's overall service revenue growth, with the Consumer segment recording a 6.1% year-on-year increase in service revenue.

KPN's commitment to sustainability has not hindered its financial performance. The company achieved a growth of more than 3% in operating profit in 2024 and made significant progress in the sustainable digitization of the Netherlands. KPN's sustainability efforts have been validated by the Science Based Targets initiative (SBTi), which has approved the company's emission reduction targets. These targets include reducing absolute scope 1 emissions by 84% and absolute scope 3 emissions by 75.6% by 2030, compared to 2015 levels, and continuing to purchase 100% renewable energy annually (scope 2). KPN also aims to be net-zero for its total emissions by 2040, including the impact of its suppliers and customers (scope 3).



KPN's strategy of investing in networks and digitalization has not only contributed to its mid-term financial ambitions but also positioned the company as a leader in the Dutch market. The company's strong fiber network provides a competitive advantage, enabling it to offer faster and more reliable internet services, attracting and retaining customers. KPN's commitment to sustainability has also contributed to its market leadership, as the company continues to lead the Dutch fiber market and expand its fiber footprint.

In conclusion, KPN's commitment to sustainable digitization and renewable energy sources has aligned with its financial performance and growth targets. The company's strategy of investing in networks and digitalization has contributed to its mid-term financial ambitions and positioned it as a leader in the Dutch market. KPN's record number of fiber homes connected, driven by its investment in network infrastructure, optimized rollout process, and customer-centric approach, has expanded the company's customer base and contributed to its overall service revenue growth. KPN's commitment to sustainability has been validated by the SBTi and has not hindered the company's financial performance. As KPN continues to invest in its networks and digitalization, it is well-positioned to maintain its market leadership and achieve its mid-term financial ambitions.