KPN has revealed its financial performance – revenue, profit, ARPU, broadband additions, fiber growth, Capex and Opex – during the first-quarter of 2024.
KPN said its revenues increased 3.3 percent to €1,377 million during the first-quarter of 2024, mainly driven by growth in Consumer (4.0 percent y-on-y).
KPN’s service revenue rose 3.6 percent to €1.27 billion.
Net profit of KPN increased 11 percent to 175 million.
KPN CEO Joost Farwerck in its earnings report said: “During the first quarter of our Connect, Activate & Grow strategy, we continued to deliver positive results. Group service revenues are growing sustainably, with all segments contributing.”
Capex of KPN rose 1.5 percent to 302 million. KPN said the fiber engine is running at full speed, in line with target to cover ~80 percent of the Netherlands with fiber by 2026. KPN has optimized its fiber roll out, with strong delivery of homes connected. KPN added 130k FTTH homes passed to KPN’s footprint in Q1 2024.
“We saw a healthy customer inflow, both in fixed and mobile, supported by our extensive fiber roll out and by the strong commercial performance of our new speed tiering proposition. Business service revenues continued to grow with SME as the main contributor,” Joost Farwerck said.
KPN reported Fixed-Mobile ARPA of €85 (+4.1 percent) and fixed broadband ARPU of €54 (+2.7 percent) during the first-quarter.
KPN’s service revenues increased 3.6 percent to €1,271 million, driven by strong growth in Consumer and SME.
KPN’s fixed service revenue growth accelerated to +3.1 percent, as fiber broadband service revenues continued to grow strongly (+13 percent), offsetting the decline in copper (-8.2 percent) and legacy services (-12 percent. KPN has activated 46k fiber households in the quarter (Q4 2023: +38k) or +42k excluding Kabeltex acquisition.
Broadband net adds were +13k1F 3 in Q1 2024, or +5k excluding Kabeltex acquisition. Fixed ARPU grew 2.7 percent to €54. Mobile service revenues rose 7.8 percent (Q4 2023: +9.1 percent). KPN’s postpaid base improved with 30k net adds (Q4 2023: +22k), driven by the success of KPN’s new speed tiering proposition.
Postpaid ARPU was 5.2 percent higher.
KPN on 4 April closed the Youfone acquisition. From that date, KPN added ~540k postpaid and ~55k broadband subscribers to its consumer customer base.
KPN has upgraded its FY 2024 outlook, following the closing of the Youfone acquisition. KPN expects an adjusted EBITDA AL of approximately € 2,500 million and FCF of more than € 890 million, while reiterating the outlook for Group service revenue growth of approximately 3 percent and Capex of approximately € 1.2 billion.
