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Royal KPN NV (KKPNY)
OTHER OTC:KKPNY
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Royal KPN
(OTC:KKPNY)
Rating:68Neutral
Price Target:
$5.00
▲(7.30%Upside)
Royal KPN (KKPNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.26B
Dividend Yield0.78%
Average Volume (3M)451.79K
Price to Earnings (P/E)19.9
Beta (1Y)0.19
Revenue Growth4.33%
EPS Growth0.83%
CountryUS
Employees9,718
SectorCommunication Services
Sector Strength82
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,888,930,400
10 Day Avg. Volume960,258
30 Day Avg. Volume451,791
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)4.99
Price to Sales (P/S)0.00
P/FCF Ratio11.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.35Price Target Upside-6.65% Downside
Rating ConsensusHold
Number of Analyst Covering0
Royal KPN Business Overview & Revenue Model
Company DescriptionRoyal KPN N.V., commonly known as KPN, is a leading telecommunications and information technology service provider based in the Netherlands. The company offers a comprehensive range of services, including mobile and fixed-line telephony, internet and television services, as well as IT solutions for both consumer and business markets. KPN operates primarily in the Netherlands but has a presence in international markets through various partnerships and collaborations.
How the Company Makes MoneyKPN generates revenue through multiple streams, primarily from its consumer and business segments. The consumer segment provides mobile and fixed-line services, broadband internet, and digital television to individual customers. Revenue is derived from subscription fees, usage-based charges, and equipment sales. The business segment caters to corporate clients, offering integrated ICT solutions, data and network services, cloud computing, and cybersecurity services. KPN often enters into strategic partnerships with technology firms and other telecom operators to enhance its service offerings and expand its market reach. Additionally, the company benefits from regulatory frameworks in the Netherlands that support infrastructure investments and competitive pricing.
Royal KPN Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: -4.12%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
KPN delivered a strong quarter with notable achievements in revenue growth and fiber expansion, supported by favorable legal settlements. However, challenges remain in consumer mobile pricing and free cash flow, which declined in the first half of the year. The overall sentiment is positive due to significant progress in growth areas outweighing the challenges.Q2-2025 Updates
Positive Updates
Group Service Revenue Growth
KPN's group service revenues increased by 3.7% with growth visible across all segments, including a strong performance in both fixed and mobile consumer segments.
EBITDA and Free Cash Flow Outlook Raised
KPN raised its full-year 2025 outlook for EBITDA and free cash flow due to favorable legal settlements and solid business and financial progress.
Fiber Footprint Expansion
KPN expanded its fiber footprint, now covering 2/3 of the Netherlands, with nearly 80% of total homes connected to fiber.
B2B Segment Growth
B2B delivered a strong quarter with 5.7% year-on-year growth, driven by solid performance in Mobile, cloud services, and broadband.
Wholesale Revenue Increase
Wholesale service revenues grew by over 8% year-on-year, driven by strong performance in Mobile and international sponsored roaming business.
Negative Updates
Consumer Mobile Pricing Pressure
There was pressure on consumer mobile pricing, particularly in the no-frills segment, affecting postpaid revenue despite net add growth.
Free Cash Flow Decline in First Half
Free cash flow declined by 15% in the first half of the year compared to the previous year, primarily due to working capital phasing and higher interest payments.
Impact of Competitive Intensity
Competitive intensity, particularly in the no-frills mobile segment, remains a challenge, with increased promotional activity affecting postpaid revenue.
Company Guidance
During KPN's second quarter earnings call for fiscal year 2025, several key metrics and guidance updates were highlighted. The company reported a 3.7% increase in group service revenues, with growth across all segments, including a notable 5.7% year-on-year growth in the B2B segment. Consumer service revenues also grew by 1.3%, driven by improvements in both fixed and mobile services. KPN's EBITDA showed strong growth, partly due to a favorable intellectual property rights (IPR) settlement, with the company revising its full-year 2025 outlook for EBITDA to over EUR 2.630 billion and free cash flow to over EUR 940 million. The fiber footprint in the Netherlands expanded, now covering two-thirds of the country, contributing to a 13,000 broadband net add inflow and a 1.2% increase in fixed ARPU. Despite a temporary decline in free cash flow due to working capital changes, KPN expects a recovery in the second half of the year. The company reiterated its commitment to a 337 CAGR framework, targeting approximately 3% growth in service revenues and adjusted EBITDA, and a 7% increase in free cash flow annually over the coming years.Royal KPN Financial Statement Overview
Summary
Royal KPN shows consistent revenue and profit growth with strong margins and efficient cash flow management. Despite high leverage typical for the industry, the company maintains solid equity returns and operational efficiency, positioning it well in the telecommunications sector.Income Statement
The company has demonstrated consistent revenue growth over the years, with a 3.01% increase in 2024, following a 2.18% increase in 2023. Gross profit margin remains strong at 73.0% in 2024, indicating efficient cost management. The net profit margin is stable at 15.1%, and EBIT margin at 24.8% shows solid operational performance. The EBITDA margin is robust at 46.4%, reflecting strong earnings before non-cash expenses.75
Positive
Balance Sheet
The debt-to-equity ratio is 2.01, indicating high leverage but typical for the telecommunications industry. Return on equity is strong at 24.0%, showing effective use of equity. The equity ratio is 28.1%, suggesting a moderate reliance on debt. Despite high leverage, the company maintains a solid equity base and returns.70
Positive
Cash Flow
Free cash flow has shown stability, though slightly declining by 4.33% in 2024. Operating cash flow is strong at 2.67x net income, indicating good cash generation from operations. The free cash flow to net income ratio is 1.12, highlighting effective cash flow management and ability to cover dividends or reinvest in the business.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.60B | 5.44B | 5.32B | 5.27B | 5.28B |
| Gross Profit | 4.09B | 2.92B | 4.08B | 4.09B | 4.00B |
| EBITDA | 2.60B | 2.56B | 2.55B | 3.31B | 2.44B |
| Net Income | 848.00M | 844.00M | 760.00M | 1.29B | 560.00M |
Balance Sheet | |||||
| Total Assets | 12.55B | 12.25B | 11.96B | 12.74B | 12.08B |
| Cash, Cash Equivalents and Short-Term Investments | 802.00M | 828.00M | 527.00M | 1.11B | 867.00M |
| Total Debt | 7.10B | 6.79B | 6.29B | 7.62B | 7.44B |
| Total Liabilities | 9.01B | 8.69B | 8.31B | 9.51B | 9.46B |
| Stockholders Equity | 3.53B | 3.56B | 3.65B | 3.23B | 2.62B |
Cash Flow | |||||
| Free Cash Flow | 950.00M | 993.00M | 982.00M | 908.00M | 479.00M |
| Operating Cash Flow | 2.26B | 2.24B | 2.19B | 2.13B | 2.04B |
| Investing Cash Flow | -1.44B | -1.43B | -1.08B | -1.21B | -1.54B |
| Financing Cash Flow | -769.00M | -606.00M | -1.50B | -717.00M | -670.00M |
Royal KPN Technical Analysis
Neutral
4.66
Price Trends
4.77
Negative
4.51
Positive
4.11
Positive
Market Momentum
-0.02
Positive
42.65
Neutral
43.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KKPNY, the sentiment is Neutral. The current price of 4.66 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 4.77, and above the 200-day MA of 4.11, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KKPNY.
Royal KPN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.35B | 11.90 | 16.28% | 5.71% | -5.14% | -7.47% | |
77 Outperform | $18.09B | 17.83 | 7.95% | 0.40% | -5.69% | -0.05% | |
77 Outperform | $54.66B | 18.97 | 14.41% | 0.16% | -0.64% | 56.92% | |
68 Neutral | $18.26B | 19.91 | 33.12% | 0.78% | 4.33% | 0.83% | |
62 Neutral | $28.18B | 9.21 | -7.17% | 0.43% | 0.89% | -494.16% | |
62 Neutral | $42.18B | -1.51 | -12.07% | 2.79% | 2.09% | -71.01% | |
59 Neutral | $30.64B | ― | -0.55% | 1.01% | -2.29% | -182.68% |
* Communication Services Sector Average
Performance Comparison
KKPNY
Royal KPN
4.66
0.83
21.67%
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VIV
Telefonica Brasil
11.07
2.95
36.33%
TEF
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5.40
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25.58%
VOD
Vodafone
11.52
2.50
27.72%
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.