Education
About Us
Working with TipRanks
Follow Us
Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
Top Page
Royal KPN
(OTC:KKPNY)
Select Model
Select Model
Rating:68Neutral
Price Target:
$5.00
â–²(11.36% Upside)
Royal KPN's overall stock score reflects solid financial performance and positive earnings call highlights, tempered by technical analysis indicating a bearish trend and moderate valuation. The company's strategic initiatives in fiber expansion and service revenue growth are promising, but high leverage and cash flow concerns warrant caution.
Positive Factors
Fiber Expansion
Expanding fiber coverage enhances KPN's infrastructure, supporting long-term growth in broadband services and improving competitive positioning.
EBITDA and Free Cash Flow Improvements
Improved EBITDA and free cash flow indicate strong operational efficiency and financial health, enabling reinvestment and debt reduction.
Service Revenue Growth
Broad-based service revenue growth underscores KPN's effective market strategies and diversified revenue streams, supporting future stability.
Negative Factors
High Leverage
High leverage increases financial risk and could limit KPN's flexibility in capital allocation and response to market changes.
Declining Free Cash Flow Growth
Declining free cash flow growth may constrain KPN's ability to fund new projects, pay down debt, or return capital to shareholders.
Price Pressure in B2B Mobile
Price pressure in B2B mobile could erode margins and reduce competitiveness, impacting KPN's profitability in this segment.
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.84B
Dividend Yield3.37%
Average Volume (3M)819.62K
Price to Earnings (P/E)19.3
Beta (1Y)0.08
Revenue Growth4.33%
EPS Growth0.83%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding3,827,465,300
10 Day Avg. Volume1,759,996
30 Day Avg. Volume819,622
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)4.17
Price to Sales (P/S)2.63
P/FCF Ratio15.52
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue4.19
Enterprise Value/Gross Profit6.80
Enterprise Value/Ebitda9.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Royal KPN Business Overview & Revenue Model
Company DescriptionRoyal KPN N.V. (KKPNY) is a leading telecommunications and IT services provider based in the Netherlands. The company operates in various sectors, including mobile and fixed-line telecommunications, broadband internet, and digital services. KPN serves both residential and business customers, offering a range of core products such as mobile phone plans, high-speed internet, television services, and cloud solutions. With a strong focus on innovation and customer satisfaction, KPN aims to enhance connectivity and digital experiences for its users.
How the Company Makes MoneyRoyal KPN generates revenue through multiple streams, primarily from its telecommunications services, which include mobile and fixed-line subscriptions, data services, and broadband internet. The company earns significant income from selling mobile contracts, internet packages, and television subscriptions to both individual and corporate clients. Additionally, KPN has a growing enterprise segment that provides IT services, cloud solutions, and cybersecurity offerings to businesses, contributing to its overall revenue. Partnerships with technology providers and content distributors further enhance KPN's service offerings and revenue potential. The company also benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing and improve profitability.
Royal KPN Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there was notable growth in service revenues, EBITDA, and fiber expansion, there were challenges such as slowed consumer revenue growth, price pressure in B2B mobile, and declines in specific business areas like Tailored Solutions.Q3-2025 Updates
Positive Updates
Service Revenue Growth
Group service revenues increased by 1.7% year-on-year, with growth seen across all segments, including consumer, business, and wholesale.
EBITDA and Free Cash Flow Improvements
EBITDA grew by 2.3% on a comparable basis, and free cash flow is up by 12% year-to-date, driven by EBITDA growth.
Fiber Expansion
KPN expanded its fiber footprint by passing 74,000 homes and connected 82,000 homes in the third quarter, bringing fiber coverage close to 80%.
Successful Consumer and Business Segments
Consumer service revenues grew due to fiber and mobile growth, and business service revenues increased by 1.4%, driven by SME and LCE segments.
Net Promoter Score Improvement
The Net Promoter Score (NPS) rose to +17 during the quarter, indicating increased customer satisfaction.
Negative Updates
Slowed Consumer Revenue Growth
Consumer revenue growth slowed to 1.1% due to promotional activity and ARPU decline in the no-frills mobile segment.
Price Pressure in B2B Mobile
Ongoing price pressure in the B2B mobile segment, especially in LCE, leading to some revenue decline.
Tailored Solutions Revenue Decline
Tailored Solutions service revenues decreased by 2.5%, reflecting a focus on value steering.
Wholesale Copper Line Losses
Wholesale copper line losses continued due to brand switching and migration issues.
Company Guidance
During KPN's third-quarter earnings call, CEO Joost Farwerck and CFO Chris Figee presented a comprehensive overview of the company's financial performance and strategic outlook. Key metrics highlighted included a 1.7% increase in group service revenues, driven by growth across all segments, and a 2.3% rise in EBITDA on a comparable basis. Free cash flow rebounded with a 12% increase year-to-date, attributed to EBITDA growth. KPN's fiber footprint expanded with 74,000 homes passed and 82,000 homes connected, aiming for 80% coverage of Dutch households. In the consumer segment, service revenues grew, supported by a Net Promoter Score of +15 year-to-date, and a quarter score of +17. The B2B segment saw a 1.4% increase in service revenues, with SME service revenues up 3.3% and LCE service revenues growing by 1%. Wholesale service revenues rose by 5.2%, driven by international sponsored roaming. Figee emphasized a 4.4% growth in adjusted EBITDA after leases, with free cash flow up 12% year-to-date. The company reiterated its midterm 337 ambitions, aiming for a 3% annual growth in service revenues and EBITDA, and a 7% increase in free cash flow over the strategic period. KPN's leverage ratio stood at 2.5x, with expectations to reduce to 2.4x by year-end, supported by increased free cash flow generation. The company is set to update its strategy on November 5, 2025.Royal KPN Financial Statement Overview
Summary
Royal KPN demonstrates solid financial performance with stable revenue growth and strong profitability margins. However, high leverage and declining free cash flow growth present potential risks. The company maintains strong operational efficiency, but cost management and debt levels should be monitored closely to sustain financial health.Income Statement
Royal KPN's income statement shows a stable revenue growth rate of 1.44% in the TTM period, with a solid gross profit margin of 57.34%. The net profit margin is healthy at 14.44%, indicating efficient cost management. However, the gross profit margin has decreased from previous periods, suggesting potential cost pressures. The EBIT and EBITDA margins remain strong, reflecting robust operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.06, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 22.96%, demonstrating effective use of equity to generate profits. The equity ratio stands at 27.34%, suggesting a moderate reliance on equity financing.65
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow growth by 2.89% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is robust at 1.67, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.55 suggests adequate cash flow to support net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.75B | 5.60B | 5.44B | 5.32B | 5.27B | 5.28B |
| Gross Profit | 3.54B | 4.09B | 2.92B | 4.08B | 2.79B | 4.00B |
| EBITDA | 2.63B | 2.60B | 2.56B | 2.19B | 3.31B | 2.06B |
| Net Income | 878.00M | 848.00M | 844.00M | 760.00M | 1.29B | 560.00M |
Balance Sheet | ||||||
| Total Assets | 12.42B | 12.55B | 12.25B | 11.96B | 12.74B | 12.08B |
| Cash, Cash Equivalents and Short-Term Investments | 374.00M | 802.00M | 828.00M | 527.00M | 1.11B | 867.00M |
| Total Debt | 7.00B | 7.10B | 6.79B | 7.28B | 7.62B | 7.63B |
| Total Liabilities | 8.98B | 9.01B | 8.69B | 8.31B | 9.51B | 9.46B |
| Stockholders Equity | 3.40B | 3.53B | 3.56B | 3.65B | 3.23B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.04B | 950.00M | 993.00M | 982.00M | 908.00M | 479.00M |
| Operating Cash Flow | 1.96B | 2.26B | 2.24B | 2.19B | 2.13B | 2.04B |
| Investing Cash Flow | -558.00M | -1.44B | -1.43B | -1.08B | -1.21B | -1.54B |
| Financing Cash Flow | -4.04B | -769.00M | -606.00M | -1.50B | -717.00M | -670.00M |
Royal KPN Technical Analysis
Negative
4.49
Price Trends
4.56
Negative
4.64
Negative
4.62
Negative
Market Momentum
-0.03
Positive
36.80
Neutral
17.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Negative. The current price of 4.49 is below the 20-day moving average (MA) of 4.62, below the 50-day MA of 4.56, and below the 200-day MA of 4.62, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 17.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KKPNY.
Royal KPN Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.31B | 14.77 | 14.93% | 7.82% | -4.90% | 14.83% | |
77 Outperform | $19.59B | 18.44 | 8.36% | 5.03% | -3.16% | 4.70% | |
75 Outperform | $21.44B | 16.17 | 15.54% | 6.14% | -5.21% | -7.45% | |
68 Neutral | $16.84B | 19.31 | 33.12% | 3.37% | 4.33% | 0.83% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $31.61B | -7.36 | -7.08% | 3.77% | 19.67% | -278.51% | |
45 Neutral | $22.13B | -9.86 | -0.70% | 7.47% | -5.49% | -75.51% |
* Communication Services Sector Average
KKPNY
Royal KPN
4.46
0.88
24.58%
TLK
PT Telekomunikasi Indonesia Tbk
21.74
6.18
39.72%
VIV
Telefonica Brasil
12.06
4.19
53.24%
TEF
Telefonica
3.81
>-0.01
-0.18%
TIMB
TIM
21.30
10.46
96.57%
VOD
Vodafone
13.47
5.36
66.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.