2024-04-25 17:43:09 ET
Koninklijke KPN N.V. (KKPNF)
Q1 2024 Results Conference Call
April 24, 2024 7:00 AM ET
Company Participants
Reinout van Ierschot - IR
Joost Farwerck - CEO
Hans Figee - CFO
Conference Call Participants
Keval Khiroya - Deutsche Bank
Andrew Lee - Goldman Sachs
Polo Tang - UBS
Maurice Patrick - Barclays
Luigi Minerva - HSBC
Nuno Vaz - Bernstein
Nawar Cristini - Morgan Stanley
Joshua Mills - BNP Paribas Exane
Georgios Ierodiaconou - Citi
Presentation
Operator
Good day, ladies and gentlemen, and welcome to KPN's First Quarter Earnings Webcast and Conference Call. Please note, this event is being recorded. [Operator Instructions] I'll now turn the call over to your host today, Reinout van Ierschot, Head of Investor Relations. Please go ahead.
Reinout van Ierschot
Yes. Good afternoon, everyone. Thank you for joining us. Welcome to KPN's First Quarter 2024 Results Webcast. With me today are Joost Farwerck, our CEO; and Hans Figee, our CFO.
As usual, before turning to our presentation, I would like to remind you of the same harbor on Page 2 of the slides, which also applies to any statements made during this presentation. In particular, today's presentation may include forward-looking statements, including KPNs expectations with respect to its outlook and ambitions, which were also included in the press release published this morning. All such statements are subject to the safe harbor. Let me now hand over to our CEO, Joost Farwerck.
Joost Farwerck
Thank you, Reinout, and welcome, everyone. Let's start with some of the highlights of the first quarter. Our group service revenues increased by 3.6%, 4% corrected for divestments. Within the mix, we continue to see positive developments in consumer, driven by both fixed and mobile. business service revenues continued to grow with SME as the main contributor and as expected, growth in wholesale leveled off a bit, but this was mainly due to lower regulated tariffs.
And together with joint venture Glaspoort, we had almost 160,000 households to our fiber footprint. We delivered EBITDA growth while free cash flow was a bit lower due to phasing of working capital. Last month, our regulator approved the Youfone acquisition that is important for us as this enables us a more effective base management strategy. And finally, our outlook, we have raised our full year guidance for EBITDA and free cash flow, reflecting the Youfone acquisition. And the other items in our outlook are reiterated, including our ambitions for 2027 as disclosed during our Capital Markets Day.
As usual, Chris will give you more details on our financials later. Our Connect, Activate & Grow strategy is supported by 3 key pillars. One, we continue to invest in our leading networks; two, we continue to grow and protect our customer base; and three, we further modernize and simplify our operating model. And together, these strategic priorities support our vision to grow our service revenues and adjusted EBITDA by 3% and our free cash flow by 7% per annum on average in the coming years, and this is simply our 337 framework. Let me now walk you through the business detail....
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Koninklijke KPN N.V. (KKPNF) Q1 2024 Earnings Call Transcript