Second quarter results 2022

Joost Farwerck

Today, KPN has announced the second quarter results 2022.

Joost Farwerck, CEO, on the results:

“We launched our Accelerate to grow strategy in November 2020 and are now halfway through the execution of our ambitious three year plan. This compelling strategy is centered around three clear pillars; to leverage and expand our superior networks, grow and strengthen our customer footprint and simplify and streamline our operating model. Over the last year and a half, we have delivered significant progress on all three. 

During the quarter, Group service revenues continued to grow supported by solid mass-market service revenue growth and inflection of our B2B service revenues. Our mobile network has received the Ookla award for best coverage and fastest 5G speeds for the fourth time in a row, proving once again the superiority of our mobile services. We continue to expand our fiber footprint and we’re consistently delivering fiber connections to households in the Netherlands. 

The mobile customer base and service revenues are showing growth across the board. In a challenging competitive environment, Consumer fiber broadband revenues showed continued growth, with copper and legacy in an anticipated decline. With the current level of fiber roll out, our commercial regional approach and attractive portfolio, we are confident that performance in Consumer Fixed will improve. 

Despite rising work pressure as a result of the war on talent, employee engagement remains at an elevated level, as our colleagues continue to express their involvement and pride to work at KPN. Thanks to their strong contribution and expertise we continue to show best-in-class customer satisfaction levels across our segments. 

Evidently, we are also not immune to inflationary effects in a challenging macro-economic environment. Wage indexation and rising energy costs will affect our cost savings run rate, but with mitigating measures we are confident of our ability to maintain healthy margins and a growing free cash flow. As a result of the progress made to date and the solid performance we have shown in the first half of the year, we raise our 2022 guidance for EBITDA and Free Cash Flow.”