KPN Earnings: Revenue, EBITDAaL and Dividends on Track; Shares Fairly Valued

As expected, narrow-moat KPN delivered on its 2024 guidance, with service revenues up 3.4% year on year to EUR 5.2 billion, compared with guidance of 3.0% growth. For 2025, KPN guided for 3% service revenue growth, EUR 2.58 billion in EBITDAaL and EUR 1.25 billion in capital expenditure. The firm's commitment on dividends also remains on track, with EUR 0.17 expected for fiscal-year 2024 and EUR 0.182 for 2025, a 7% increase. KPN remains one of our favorite picks for investors interested in European telecoms, together with Deutsche Telekom and Tele2. However, all of these names remain fairly valued at the moment. We are maintaining our EUR 3.40 fair value estimate for KPN.