Koninklijke Kpn Nv

Good day, ladies and gentlemen. Welcome to KPN's first quarter earnings webcast and conference call. Please note that this event is being recorded. At this time, all participants are in listen and remote. We will be facilitating a question and answer session towards the end of today's prepared remarks. If you would like to ask a question, you may do so by pressing star 1 on your telephone. I will now turn the call over to your host for today, Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin.

Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van Leeuwenhorst, Head of Investor Relations. You may begin. Matthijs van which applies to any statements made during this presentation. In particular, today's presentation may include forward-looking statements, including KPM's expectations regarding its outlook and ambitions, which were also included in the press release published this morning. All such statements are subject to the safe harbor. Now, let me hand over to our CEO, Joost Farberg.

Thank you, Matthijs, and welcome, everyone. So let's start with the highlights of the first quarter of this year. On group service revenues, we increased by 3.8%, of which 0.7 is related to U-Fund. And in the mix, in consumer, the service revenue trend slightly improved in the first quarter, mainly driven by mobile. Our business segment continued to show solid growth, and wholesale service revenues accelerated, mainly driven by mobile. We delivered solid EBITDA growth, partly due to contributions from Ufone and Altio. And as expected, our free cash flow declined, partly due to high interest and tax payments, as expected, and this is also expected to recover in the second half of the year. We further expanded our FABU footprint together with our joint venture, Glassport, and we received an award from Umlaut for having the best mobile network in the Netherlands, with the highest score ever measured in the world. Our new tower company, Altio, began its operations in mid-February, and therefore we upgraded our full year 2025 outlook accordingly, which we are confident in achieving. Overall, we started the year well. Of course, there is uncertainty given the current economic and geopolitical environment. but we are confident that the direct impact of U.S. trade tariff measures on us is limited and consider our business resilient with strong demand for our essential connectivity and communication services. As a reminder, our Connect, Activate, and Grow strategy is supported by three 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. Together, these strategic priorities support our ambition 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, or simply put, our 337 CAGR framework. Let me now walk you through the business details. We continue to lead the Dutch fiber markets. In the first quarter, we expanded our fiber footprint by adding 100,000 homes together with Closport, now jointly covering 64% of Dutch households. Our efforts in connecting homes and activating customers have paid off, reaching 78% of total homes on our network, while two-thirds of our retail base now enjoys the benefits of fiber. Let's now have a look at the consumer segment. The consumer service revenues increased 4.6% year-on-year, of which a bit more than 3% is related to Ufone. We are satisfied with Ufone's performance, which enables us to better address the no-frills segment of the market. Our increased focus on loyalty and base management is further strengthened by the recent launch of our new household proposition, Combi4Deal, which rewards customers for taking multiple products for households. Currently, 60% of our fixed households have adopted the fixed mobile proposition. Our consumer net promoter score declined, influenced by challenging consumer sentiment, especially at the start of the year. However, customer satisfaction trends improved during the quarter, supported by the launch of the new household proposition I just mentioned. Now let's take a deeper look into our first quarter KPIs. We saw another quarter of broadband-based growth despite the challenging competitive environment. We maintained a constant healthy inflow of new FibreCorn customers, which combined with the growing ARPU led to continued growth in our fixed service revenues. As expected, our mobile service revenue growth improved sequentially, mainly driven by commercial improvements. And our post-paid pay increased by 21,000, while the post-paid ARPU, excluding U-phones, remained relatively stable. Let's now move to B2B. B2B delivered another strong quarter with 5.1% year-on-year growth, driven by SME and Payless solutions. Commercial momentum remained solidly mobile, and the majority of our B2B broadband customers now utilize the fiber network of KPM and Salesforce. And despite the volatile economic environment, our business net promoter score remained stable. B2B customers appreciate KPM for stability, reliability, and the quality of our network and the quality of our services. In today's complex world, we help Dutch businesses to become digitally resilient, supporting them in their digital transformation to work more securely and more efficiently. And SME continues to grow, driven by strong performance in cloud and workspace, broadband, and ongoing momentum in mobile. And to protect sleep customers from digital threats, KPN offers extra safe internet services, enhancing their digital strength against rising cybercrime. I believe more than 70% is currently already making use of that, 70% of the base. LCE service revenues remain stable with solar performance improvement, IoT and cloud workspace offset by some price pressure in mobile. And Taylor Solutions delivers S-plans, with strong growth driven by higher project revenues. And this business always remains subject to project timing and seasonality. Then our wholesale service revenues continue to improve, mainly driven by mobile as well. Broadband service revenues increased despite the declining base, mainly driven by higher fiber service revenues. Mobile service revenues remain strong, driven by ongoing growth in international sponsored roaming volumes. Furthermore, we extended the contract terms for some of our largest wholesale partners. All the service revenues in wholesale represented a slight increase, mainly due to an uptick in visitor rolling. Now, let me hand over to Chris to give you more details on our financials.