KPN 22Q4 details

KPN 22Q4 reporting, details:

• 22Q4:
• contributed EUR 23m to Getronics US pension plan (lowers annual contributions by EUR 7m for 3-4 yr)
• price increase 5.8% on mobile (cap 2 EUR/mo, 221001), 3.5% for BB (220701) (increases depend on CLA wage increase (6% for 2023 = +EUR 45m))
• upselling to higher speeds (50 Mb/s sunset, lowest in fixed now 100 Mb/s)
• direct costs up (higher non-service rev (CPE), Glaspoort access costs, B2B SR mix change)
• indirect costs down
• personnel costs down (efficiency, attrition)
• IT/TI down (digitisation)
• other costs up (energy)
• cost savings EUR 4m (incl one-off cost-of-living allowance for personal for high inflation)
• total opex savings 2022 EUR 38m
• Right-of-Use asset impairment EUR 16m on closing office The Hague
• Outlook 2023:
• adj EBITDA EUR 2.41b (EUR 5-10m higher than 2022; growth skewed to 23H2, yoy decline in 23Q1 on high comparison basis)
• capex 1.2b
• FCF 870m
• div 15.0c (+4.9%)
• new SBB EUR 300m (AGM 230412, ex 230414, payment 230419)
• KPN Netwerk to report extended HP numbers (incl street presence) from 23Q1
• accounting effect on consumer BB (rev sharing with SVOD) laps from 23Q2
• LCE inflection during 23Q2
• costs up on wage indexation (+EUR 45m), energy (+EUR 50-55m; 80% of total hedged, 20% spot market), inflation (impact on leases +EUR 10-20m)
• FCF: higher cash taxes (+EUR 100m), WC improvement; FCF-to-Sales ~16% coming years
• FTTP roll-out 2023 >600k (incl Glaspoort), currently 70% is HC
• target energy consumption 2023 425-435 GW (2022: 455; 2021: 480 GW), target energy 2024 flat from 2023
• target job cuts 2023 at least as 2022 (350)
• Other
• 2021 included an acquisition qualified as capex
• Glaspoort (non-consolidated) reduces EBITDA (access costs will end once Glaspoort is consolidated) but adds minority interest (below EBITDA)
• Considers fiber update analist meeting 2023