KPN Q2: Data Breach Tailwind Competed Away; FY26 Service Revenue Targets Reduced

Research evidence excerpt

KPN Q2: Data Breach Tailwind Competed Away; FY26 Service Revenue Targets Reduced

J P M O R G A N Europe Credit Research

22 July 2026

Neutral

KPN KPN

Q2: Data Breach Tailwind Competed Away; FY26 S&P:Fitch: BBBBBB Outlook:Outlook: StableStable

The above agency ratings are at the corporate levelService Revenue Targets Reduced

Europe Corporate Credit -

Technology, Media &

Telecommunications

Andrew Webb AC

(44-20) 7134-0121

andrew.x.webb@jpmorgan.com

• KPN delivered a small beat in Q2, with Adj. EBITDAaL 0.7% ahead and FCF Alvaro Calero Fernandez

5.6% ahead. KPN saw little sequential benefit from the Odido data breach, as (44-20) 7134-3000

competition stepped up to capture the increase in commercial activity. The alvaro.calerofernandez@jpmorgan.com

company downgraded FY26 targets for service revenues but remains on track Dihan D Udugampola, CFA

to deliver on mid-term ambitions, with net leverage ending the period at the (44-20) 3493-6714

dihan.udugampola@jpmorgan.com

upper end of its <2.5x financial policy target. We reiterate our Neutral J.P. Morgan Securities plc

recommendation on KPN (EUR/GBP notes), reflecting a more balanced

risk-reward profile as the company transitions beyond its peak

investment phase. KPN remains committed to returning all free cash flow to KPN (KPN) CDS, z+34bps as of 13:45pm,

shareholders through dividends and buybacks. At the 2025 CMD, the mid-term 22nd July 2026.

leverage ceiling was raised to ~2.8x, with incremental headroom used to

consolidate Glaspoort, bolt-on acquisitions, or shareholder returns. The

company maintains a strong position in the three-player Dutch market,

supported by mobile network quality leadership and a leading fibre franchise.

Following the ACM's decision to block the proposed Glaspoort-Delta Fibre