KPN: boosts fiber, plans to accelerate growth

(CercleFinance.com) - Dutch telecommunications company KPN said on Tuesday that it plans to accelerate growth by stepping up the rollout of fiber-optic networks in the Netherlands.


The former monopoly said at its capital markets day this morning that fiber rollout should cross the 50% threshold in the Netherlands in 2023, before reaching a footprint of 65% by 2025.

"Working from home has become the norm. Therefore, the need for fast and reliable Internet is greater than ever," CEO Joost Farwerck said.

KPN - which makes the majority of its revenues and EBITDA in the consumer and SME markets - said it aims to return to growth on these mass-markets by the end of 2021, as well as on the wholesale segment.

The company said it is confident to deliver growth in adjusted EBITDA after leases and free cash flow, and committed to a "progressive" dividend policy.

In addition, a set of simplification and digitalisation measures are expected to deliver additional cost savings of at least 250 million euros in 2021-2023, it said.

Despite all these announcements the KPN share was trading 0.4% lower on Euronext Amsterdam on Tuesday morning.

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