Koninklijke KPN (KPN) Q4 2024 earnings summary

Executive summary

• FY 2024 group service revenues grew 3.4% year-over-year, with adjusted EBITDA AL at €2,508m and free cash flow at €900m, both slightly above guidance.

• Added 574,000 fiber households, now covering 63% of Dutch homes, with a record 418,000 homes connected in 2024 and a target of 80% coverage by end-2026.

• 2025 guidance: ~3% growth in service revenues and adjusted EBITDA AL (~€2,580m), CapEx of €1.25bn, free cash flow of €910m, and a 7% dividend per share increase.

• Total shareholder return projected to grow by 10% in 2025, with a €250m share buyback planned and all free cash flow returned to shareholders.

• Consumer and business segments both contributed to growth, with strong commercial momentum and robust fiber broadband and postpaid performance.

Financial highlights

• FY 2024 adjusted revenues were €5,634m (+3.4% y-o-y); adjusted EBITDA AL was €2,508m (+3.6% y-o-y); free cash flow reached €900m (+1.6% y-o-y).

• CapEx for FY 2024 totaled €1,255m, slightly above expectations due to fiber rollout and wage inflation.

• EBITDA margin was 44.5% for FY 2024 (+10bps y-o-y); ROCE improved to 14.4% (+40bps y-o-y).

• Net profit for FY 2024 was €847m (+0.6% y-o-y), impacted by one-off refinancing costs.

• Operational free cash flow for FY 2024 was €1,253m (+6.9% y-o-y).

Outlook and guidance

• 2025 guidance: ~3% organic group service revenue and adjusted EBITDA AL growth, CapEx stable at €1.25bn, free cash flow of €910m.

• Dividend per share to rise 7% to €0.182; €250m share buyback planned.

• CapEx expected to step down below €1bn from 2027, driving a significant free cash flow inflection and 7% CAGR in FCF.

• Multi-year ambition: service revenues and adjusted EBITDA AL CAGR ~3%, FCF CAGR ~7%, ROCE to 15% by 2027.