FX.co ★ KPN Q1 Net Profit Declines; Raises 2024 Outlook

KPN disclosed that its first quarter net profit was 175 million euros, marking an 11% reduction from the previous year, which was largely due to unique refinancing costs. However, its Adjusted EBITDA AL experienced an uptick of 3.6%, reaching 605 million euros, largely propelled by heightened service revenues.

The first quarter witnessed a 3.6% increase in Group service revenues, amounting to 1.27 billion euros, which was primarily driven by sustained robust growth in both the Consumer and SME sectors. Taking divestments in LCE into account, the growth in Group service revenues was 4.0%. Moreover, adjusted revenues saw a rise of 3.3%, bringing it up to 1.38 billion euros. This was primarily led by growth in the Consumer segment.

In the wake of acquiring Youfone, KPN revised their full year 2024 prognosis for adjusted EBITDA AL and Free Cash Flow. KPN now projects an adjusted EBITDA AL of approximately 2.50 billion euros and a Free Cash Flow exceeding 890 million euros. Furthermore, they reemphasized their forecast for Group service revenue growth of about 3% and Capex of roughly 1.2 billion euros. Finally, KPN reaffirmed its mid-term ambitions.