Sustainable Group service revenue growth (+2.8% y-on-y) in Q2 2023, supported by all segments
? Continued strong Business service revenue growth (+4.5% y-on-y), with all segments contributing
? Consumer service revenues back to growth at +1.3% y-on-y, fueled by Mobile (+5.3%) and improving Fixed trend (-0.4%)
? Strong commercial momentum driving broadband (+14k) and postpaid (+31k) base growth in Consumer
? Solid progress fiber roll-out (+125k HP), (+184k HP incl. Glaspoort)
? Adjusted EBITDA AL +0.1% y-on-y in Q2 2023, Free Cash Flow generation impacted by intra-year phasing in H1 2023
? Steadily improving ROCE at 13.7%, reflecting focus on long-term shareholder value creation
? On track to reach FY 2023 outlook for adjusted EBITDA AL and Free Cash Flow
Message from the CEO, Joost Farwerck
“We continue to make good progress with our Accelerate to Grow strategy. Group service revenues are growing sustainably, with growth across
all segments. Our commitment to customers is to deliver the best connectivity. This is also reflected by continued positive and best-in-class customer
satisfaction levels in both Consumer and Business. To sustain our network leadership position, we are on-track with our accelerated fiber roll out
and continue to decommission our copper network in fiber areas.
During the second quarter, our Business service revenues showed continued growth, with SME making a strong contribution once again. Consumer
service revenues inflected to growth, driven by ongoing mobile service revenue growth, and improving trends in fixed. We saw encouraging base
developments across the board, driven by commercial improvements and strong execution. Wholesale made a solid contribution, thanks to our
open wholesale policy.
In the second quarter, we announced the acquisitions of Primevest and Youfone. While Primevest strengthens our fiber footprint in larger cities,
the intended acquisition of Youfone will strengthen our positioning, especially in the mobile no-frills segment.
Employee engagement remains at an elevated level, as our colleagues continue to express their pride to work at KPN. We continue to make
progress on our sustainability agenda. Supporting this, we have recently launched initiatives to promote the use of bicycles for our employees.
Furthermore, I am pleased to share KPN has been recognized by MCSI, for the third year in a row, with an industry leading ESG rating of AAA.
Despite increasing costs, driven by wage indexation and higher energy prices, the sustainable service revenue growth run-rate, our robust current
performance and among others, the measures we have put in place to reduce costs, provide us with confidence to deliver on our full year outlook.
As we reach the end of the current strategic period, we look forward to sharing a strategy update at our Capital Markets Day on the 7th of
November.”
Key figures
Group financials (unaudited) Q2 2022 Q2 2023 ? y-on-y H1 2022 H1 2023 ? y-on-y
(in € m, unless stated otherwise)
Adjusted revenues 1,311 1,331 +1.6% 2,618 2,664 +1.8%
Service revenues 1,211 1,245 +2.8% 2,423 2,472 +2.0%
Adjusted EBITDA AL 595 596 +0.1% 1,189 1,180 -0.8%
As % of adjusted revenues 45.4% 44.8% 45.4% 44.3%
Operating profit (EBIT) 307 337 +9.9% 598 653 +9.3%
Net profit 186 216 +16% 365 412 +13%
Capex 295 304 +3.0% 553 602 +8.9%
As % of adjusted revenues 22.5% 22.8% 21.1% 22.6%
Operational Free Cash Flow 300 292 -2.8% 636 578 -9.2%
As % of adjusted revenues 22.9% 21.9% 24.3% 21.7%
Free Cash Flow 202 190 -6.2% 408 354 -13%
As % of adjusted revenues 15.4% 14.2% 15.6% 13.3%
Net debt 5,382 5,739
ROCE 12.0% 13.7%

Press release
24 July 2023
KPN Q2 2023 results 2
Continued strong operational momentum
? Consumer: mobile service revenues continued to grow (+5.3% y-on-y), driven by postpaid growth and higher ARPU
? Fixed-Mobile households: +10k net adds (Q1 2023: -3k); Fixed-Mobile ARPA at € 83 (+2.8% y-on-y)
? Broadband: +42k fiber net adds (Q1 2023: +35k), +14k total broadband net adds (Q1 2023: -7k)1
? Postpaid: +31k net adds (Q1 2023: +11k); ARPU 3.0% higher at € 17
? NPS remains strong at +19 (Q1 2023: +17)
? Business: service revenue growth of +4.5% y-on-y, supported by all segments
? Broadband lines: +2k net adds (Q1 2023: -2k)
? Mobile SIMs: +10k net adds (Q1 2023: +20k)
? NPS remains positive at +5 (Q1 2023: +6)
? Wholesale: back to service revenue (+3.8% y-on-y) and broadband base growth
? Broadband lines: +10k net adds (Q1 2023: flat)
? Postpaid SIMs: +17k net adds (Q1 2023: +25k)
? Network: steady expansion fiber footprint, covering 53% of the Netherlands (including Glaspoort)
? Added 125k FttH households to KPN’s fiber footprint (+184k including Glaspoort) in Q2 2023
? Mobile network recognized by Ookla for sixth consecutive time as best coverage, highest speeds and fastest 5G in the Netherlands
Solid financial performance
? Adjusted revenues increased 1.6% y-on-y, driven by continued Group service revenue growth (+2.8% y-on-y) with all segments contributing.
H1 2023 adjusted revenues increased 1.8% y-on-y
? Adjusted EBITDA AL was +0.1% y-on-y. Higher service revenues were mostly offset by higher indirect costs due to inflation. Adjusted EBITDA
AL margin at 44.8% (Q2 2022: 45.4%). H1 2023 adjusted EBITDA AL decreased 0.8% y-on-y
? Net profit of € 216m increased by € 30m or 16% y-on-y, mainly due to lower depreciation and amortization. H1 2023 net profit increased
13% y-on-y
? Capex of € 304m was € 9m higher y-on-y in Q2 2023. H1 2023 Capex increased € 49m y-on-y, mainly driven by timing of investment projects
? Operational Free Cash Flow of € 292m decreased 2.8% y-on-y due to adjusted EBITDA AL and intra-year Capex phasing. H1 2023 Operational
Free Cash Flow decreased 9.2% y-on-y
? Free Cash Flow of € 190m decreased € 13m y-on-y in Q2 2023. H1 2023 Free Cash Flow decreased € 55m compared to the same period last
year driven by higher Capex
? Steadily improving ROCE to 13.7% in H1 2023 (+169bps y-on-y), driven by operational efficiencies and lower depreciation
? Solid liquidity position of € 1,367m, covering debt maturities until 2025
Outlook 2023 reiterated
KPN maintains its FY 2023 outlook for adjusted EBITDA AL of approximately € 2,410m, Capex of € 1.2bn, and Free Cash Flow of approximately
€ 870m. KPN intends to pay a regular dividend per share of € 15.0 cents over 2023. An interim dividend of € 5.2 cents per share will be paid on
1 August 2023. The ex-dividend date is 26 July 2023.
In Q2 2023, KPN completed a share buyback program of € 300m. In total, KPN repurchased 92,401,811 ordinary shares at an average price of
€ 3.25 per share.
lees verder op
https://irpages2.eqs.com/download/companies/koninkpnnv/Results/KPN_Q2_2023_Press_release.pdf