KPN Earnings: EBITDAaL Growth Reaches 4.6%, Ahead of Guidance

Narrow-moat KPN's second-quarter results were slightly ahead of company-compiled consensus. Adjusted revenue grew by 4.5% year over year to EUR 1.39 billion, which flowed into the EBITDAaL line which grew by 5.6%, reaching EUR 629 million. Adjusted EBITDA after leases expanded 40 basis points to 45.2%. Management reiterated its yearly outlook, which seems conservative at this point. Management is targeting 3% growth in adjusted revenue and EBITDAaL, while these same metrics are up 3.9% and 4.6% in the first half of the year, respectively. We maintain our EUR 3.20 fair value estimate, with shares remaining slightly overvalued, trading in EUR 3.60 territory.