KPN and ABP Launch New Tower Company Althio for Growth
KPN and ABP Launch New Tower Company Althio
Royal KPN N.V. and ABP have made a significant move in enhancing their service capabilities by announcing the establishment of a new, open Tower Company named Althio. This venture aims to optimize and expand their mobile network infrastructure, reflecting KPN's strategic vision to improve and streamline operations.
Strategic Objectives of Althio
The creation of Althio aligns perfectly with KPN's overarching strategy of 'Connect, Activate & Grow.' The new company is set to enhance KPN's operational efficiency with increased flexibility regarding mobile site management. This will facilitate strategic synergies in various areas including deployment and maintenance of the network infrastructure. By re-evaluating existing lease conditions, KPN is further demonstrating its commitment to maximizing shareholder value.
Financial Forecasts and Impact
With KPN holding a 51% stake in Althio, it will fully integrate this new entity into its financial structure as of the transaction's closing date. Consequently, KPN has increased its financial outlook for 2025, projecting an adjusted EBITDA AL of over €2,600 million and Free Cash Flow of around €920 million. These revised forecasts outline KPN's confidence in Althio's contribution to its financial performance.
KPN continues to emphasize its service revenue growth expectations of approximately 3%, with a capital expenditure forecast of about €1.25 billion. The planned increase in net debt, estimated to rise by up to €300 million, is anticipated to result in a minor pro-forma effect on KPN’s leverage ratio.
Future Contributions of Althio
This consolidation of Althio is not just a numerical boost; it represents a strategic layer to KPN’s already ambitious financial goals. The integration is expected to bring a modest yet positive impact on KPN’s financial results, complementing the company's targets set during its 2023 Capital Markets Day. KPN’s leverage ratio is expected to stabilize around 2.5x net debt/EBITDA, ensuring robust financial health moving forward.
Contact Information
For inquiries, please reach out to: Royal KPN N.V.
Head of Investor Relations: Matthijs van Leijenhorst
Inside Information: Yes
Topic: KPN and ABP announce start of new Tower Company, Althio.
Frequently Asked Questions
What is Althio?
Althio is a new open Tower Company established by KPN and ABP to enhance mobile infrastructure and operational efficiency.
What are KPN's expectations for 2025?
KPN anticipates an adjusted EBITDA AL of more than €2,600 million and Free Cash Flow around €920 million for 2025.
How will Althio benefit KPN?
Althio will provide KPN greater flexibility and strategic synergies in managing its network infrastructure, contributing to overall service efficiency.
What is KPN's financial strategy?
KPN's financial strategy focuses on optimizing shareholder value through efficient management of its assets and maintaining a strong leverage ratio.
Who should be contacted for more information?
For additional details, individuals may contact Matthijs van Leijenhorst, Head of Investor Relations at Royal KPN N.V.
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