Koninklijke Kpn Nv

Good day, ladies and gentlemen. Welcome to KPN's third quarter earnings webcast and conference call. Please note that this event is being recorded. At this time, all participants are in lesson-only mode. 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, Matthias von Leunhorst, Head of Investor Relations. You may begin.

Yeah, thank you. Good afternoon, ladies and gentlemen. Thank you for joining us today. Today we published our Q3 results. With me today are Jo Starwerk, our CEO, and Casey Gay, our CFO. And as usual, before we begin the presentation, I would like to remind you of the safe harbor on page two of the slides, 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.

Thank you, Mathijs, and welcome, everyone. Let's start with the highlights of the last quarter, third quarter. Our group service revenues increased by 1.7% with growth across all the segments. In the mix, consumer was supported by ongoing commercial momentum, both in broadband and mobile. Business was driven by mainly SME and LCE, As expected, growth slowed in the third quarter mainly due to the tailored solutions parts, and wholesale continued to grow mainly driven by sponsored roaming. Our EBITDA grew by 2.3% on a comparable basis, and as expected, our free cash flow rebounded in the third quarter up 12% year-to-date, driven by EBITDA growth. We further expanded our fighter footprint together with our joint venture, Glossport, and finally, we remain confident to deliver on the full year 2025 outlook and our 337 midterm ambition. As a reminder, our Connect, Activate, and Grow strategy is supported by three key pillars. First of all, we continue to invest in our leading networks. Second, we continue to grow and protect our customer base. And Third, we further modernize and simplify our operating model. And together, these priorities support our ambition to grow our service revenues and adjusted EBITDA by approximately 3% on average and our free cash flow by approximately 7% over the entire strategic period. And given that we are now nearly halfway through our strategic period, we look forward to sharing a strategy update with you next week, November 5th. And we hope you will join us online for the webcast. Let me now walk you through the business details. We lead the Dutch fiber market. In the third quarter, we expanded our fiber footprint by adding 74,000 homes past, together with Closport, and we connected 82,000 homes, bringing us close to 80% homes connected within the fiber footprint. The rollout pace slowed compared to previous quarters due to timings. We stick to our ambition to cover 80% of Dutch households with fiber. During our strategy update next week, we'll share how we will get there within our financial framework. Let's now have a look at the consumer segments. Consumer service revenues continue to grow, driven by consistent fiber and normal service revenue growth. Customer satisfaction remains a priority, and thanks to our CombiFordale offer, supported by super Wi-Fi, Our net promoter score rose to plus 15 year-to-date, and net promoter score even reached plus 17 during the quarter, showing how these improvements are making a real difference for our customers. Let's take a closer look at our third quarter KPIs. We saw another quarter of double-digit broadband-based growth, despite a challenging competitive environment. Thanks to a steady and healthy inflow of new fiber customers, combined with a growing RQ, our fixed service revenues continued to grow. In Momo, we maintained strong commercial momentum, adding 47,000 subscribers. And this was partly offset by ARCHU decline, driven by ongoing promotional activity in the no-fail segment. So overall, our mobile service revenue grew by 1%. Let's now turn to the B2B segments. Business service revenues increased by 1.4 year-on-year, driven by SME and LCE, and good commercial momentum. Net promoter score rose to plus five in the third quarter, reflecting customer appreciation for our stability, reliability, and the quality of our networks and services. SME service revenues increased by 3.3% year-on-year, driven by growth in cloud and workspace, broadband, and mobile. LCE service revenues increased by 1% year-on-year, supported by growth in mainly IoT, unified communications, and CPaaS. Mobile service revenues were impacted by ongoing price pressure, though this was partly offset by growing customer base. Finally, and as expected, I must say, tailored solution service revenues decreased by 2.5%, reflecting a further focus on value scaling. Then wholesale. Our wholesale service revenues continue to grow, mainly due to a strong performance in mobile, driven by the continued growth in international sponsored roaming. Broadband service revenues increased despite a decline in copper base driven by fiber. And other service revenues increased mainly due to an update in visitor roaming. Now, let me hand over to Chris to give you more details on financials.