Koninklijke KPN N.V. was incorporated in 1989 and is domiciled in the Netherlands. Koninklijke KPN N.V. (hereafter: \"KPN\" or \"the company\") is registered at the Chamber of Commerce (file no. 02045200). The address of KPN\u2019s registered office is Wilhelminakade 123, 3072 AP, Rotterdam, the Netherlands. Its shares are listed on Euronext Amsterdam.
KPN is a leading telecommunications and IT provider in the Netherlands, offering fixed and mobile telephony, fixed and mobile broadband internet and TV to retail and business consumers. KPN is market leader in infrastructure and network-related IT solutions to business customers in the Netherlands. KPN also provides wholesale network services to third parties.
The consolidated financial statements were authorized for issue by both the Supervisory Board and the Board of Management on 20 February 2026 and are subject to adoption by the annual general meeting of shareholders (AGM) on 15 April 2026.
The consolidated financial statements were authorized for issue by both the Supervisory Board and the Board of Management on 20 February 2026 and are subject to adoption by the annual general meeting of shareholders (AGM) on 15 April 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6645": { "value": "KPN's consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code, under the historical cost convention, except for certain equity investments accounted for using the equity method, and certain equity investments and derivative financial instruments measured at fair value, and on a going-concern basis.
All amounts are presented in millions euros (\u20ac) unless stated otherwise. Certain figures may not tally exactly due to rounding. In addition, certain percentages may have been calculated using rounded figures.
The non-material restatements for 2024 relate only to segment reporting for comparability, see Note 3.
The general accounting policies as applied are described below. Material accounting policies are described in the notes to the consolidated financial statements.
KPN applies new standards and amendments issued by the International Accounting Standards Board (IASB), when effective and endorsed by the European Union. KPN has not early adopted any standards.
The endorsed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability have become effective as of 1 January 2025. These amendments did not have a significant impact.
The IASB has issued several new standards and amendments to existing standards with an effective date of 1 January 2026 or later.
The following standards and amendments are effective as of 1 January 2026:
Amendments to IFRS 7 and IFRS 9: Amendments to the Classification and Measurement of Financial Instruments;
Amendments to IFRS 7 and IFRS 9: Contracts Referencing Nature-dependent Electricity;
Annual improvements to IFRS Accounting Standards - Volume 11.
The following standards and amendments are effective as of 1 January 2026 (or later) but have not yet been endorsed:
IFRS 18: Presentation and Disclosure in Financial Statements;
IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates- Translation to a Hyperinflationary Presentation Currency.
KPN does not expect that these standards and amendments will have a material impact but this assessment has not been finalized yet.
KPN\u2019s consolidated financial statements include the financial results of its subsidiaries and incorporate KPN\u2019s share of the results from associates and joint ventures.
Subsidiaries are all entities directly or indirectly controlled by KPN. \"Control\" is defined as the power over an entity, i.e. the ability to govern its financial and operating policies, resulting in obtaining the variable returns from the entity\u2019s activities and effect those returns through its power.
Subsidiaries are fully consolidated from the date on which control is obtained by KPN and are deconsolidated from the date on which KPN\u2019s control ceases. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated.
Changes in ownership interests in subsidiaries without change of control that do not result in loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
The consolidated financial statements are presented in euros (\u20ac), which is KPN\u2019s presentation currency as well as the functional currency of KPN's statutory entity.
Transactions in foreign currencies are translated into euros using the exchange rates applicable at transaction date. At reporting date, monetary assets and liabilities denominated in foreign currencies are translated to euros using the rates at reporting date. Exchange rate differences are recognized in profit or loss \u2013 except when these differences are related to qualifying cash flow hedges and qualifying net investment hedges, in which case the exchange rate differences are recorded in other comprehensive income (OCI).
Exchange rate differences on non-monetary assets and liabilities (which are carried at fair value) are reported as part of the fair value gain or loss from that asset or liability. Exchange rate differences arising from the translation of the net investment in foreign entities, of borrowings and of other currency instruments designated as hedges of such investments are recognized in OCI.
For consolidation purposes, the results and financial position of subsidiaries are translated into euros at the closing rate on the date of the financial position (assets and liabilities) or at the average exchange rates applicable for the specific reporting period (income and expenses). All resulting exchange differences are recognized in OCI.
The statement of cash flows is prepared using the indirect method. Cash flows denominated in currencies other than euros are translated at average exchange rates. Cash flows relating to interest and taxes on profits and tax deductions relating to interest on perpetual hybrid bonds are included in the cash flow from operating activities. Tax payments directly related to the disposal of subsidiaries are presented as part of the cash flows from investing activities when separately identifiable. The consideration paid in cash for acquired subsidiaries is included in the cash flow from investing activities, net of cash acquired. Cash flows resulting from the disposal of subsidiaries are disclosed separately, net of cash sold.
Significant accounting estimates, judgements and assumptions made by management are evaluated periodically and are based on historic experience and other factors, including expectations of future events thought to be reasonable under the circumstances. Actual results may deviate from the estimates applied. Estimates are revised when material changes to the underlying assumption occur.
The accounting estimates, judgements and assumptions deemed significant to KPN\u2019s consolidated financial statements relate to:
Subjects | Notes |
|---|---|
Determination of deferred tax assets for limitations on depreciation for real estate and provisions for tax contingencies | |
Determination of value-in-use of cash-generating units for goodwill impairment testing | Note 11 |
Assessments of exposure to credit risk and financial markets risk | Note 13.4 |
Assessment required to determine whether or not to recognize a provision for idle cables, which are part of a public electronic communications network | |
The assessment of the lease terms deemed reasonably certain of KPN's lease contracts and the incremental borrowing rate used to measure the lease liabilities | Note 19 |
Assessments whether revenue for variable consideration is probable or highly probable. This concerns revenue related to disputes and revenue related to VAT regarding unused multipurpose bundles. | |
Several assessments related to KPN\u2019s 50% interest in Glaspoort B.V. (classified as a joint venture): | |
Several assessments related to KPN\u2019s 51% interest i.e. control in Althio B.V.: | Note 21 |
- The purchase price allocation related to the acquisition of Althio B.V. | Note 21 |
In preparing its financial statements, KPN has applied the concept of materiality to the presentation and level of disclosures. Only essential and mandatory information is disclosed that is relevant to a reader\u2019s understanding of these financial statements.
KPN has assessed whether climate-related events, risks or strategic sustainability initiatives have a material effect on the measurement of assets and liabilities or on its financial performance.\u00a0KPN operates in a sector with relatively low direct greenhouse-gas emissions and has limited exposure to material climate-related transition risks. KPN has a sustainability strategy focused on reducing emissions throughout the value chain and improving energy and network efficiency. These developments did not have a material impact\u00a0on the measurement or presentation of assets and liabilities in the financial statements during the reporting period.
KPN has assessed whether additional disclosures are necessary to provide users of the financial statements with insight into the effects of climate-related events and conditions. Although extensive sustainability information is included in the separate sustainability statement, the company has evaluated whether such information indicates required adjustments to the financial statements or additional disclosures. The effect of climate-related risks on the valuation of assets, liabilities and financial results during the reporting period is limited. No network or IT assets were subject to material impairment or changes in useful lives as a result of climate or transition risk considerations.
Based on the above assessment, climate-related developments and KPN\u2019s sustainability initiatives do not have a material impact\u00a0on the financial statements for the reporting period. Sustainability-related objectives and performance metrics are primarily reported in the separate sustainability statement and do not result in further disclosures beyond those included in this note.
Geopolitical risk does not have an acute impact on the financial statements. However, the Financial Materiality Assessment (FMA) identifies a risk related to the scarcity of (critical) raw materials, which could affect the availability and cost of key products and services and may be amplified by geopolitical developments due to concentrated primary supply. Based on current assessments, this risk does not have a direct impact on the financial statements for the reporting period.
Operating segments are reported in accordance with IFRS 8: Operating Segments in a manner consistent with the internal reporting to KPN\u2019s CEO, who is the chief operating decision-maker.
The application of KPN\u2019s accounting policies on revenue recognition, including relevant judgements, and information about KPN\u2019s performance obligations are summarized below:
Network access is considered a separate performance obligation. Revenue is recognized over time during the subscription period. Content, e.g. TV channels and streaming services, is generally bundled with network access and revenue is recognized on a gross basis.
Revenues for streaming services which are contracted with customers additionally are recognized on a net basis when KPN acts as an agent.
One-off connection fees are not considerations for separate performance obligations as they are considered to be necessary to get network access. The fees charged to customers are recognized as a contract liability and bundled with the performance obligation for network access.
Transaction-related dealer fees paid to acquire or retain subscribers are capitalized as contract costs and expensed on a straight-line basis over the contract term of the underlying customer contract.
Installation services offered to consumers are generally considered a separate performance obligation, as these services have standalone value for the customers. Installation services that are treated as a separate performance obligation include installation of customer premises equipment (CPE), e.g. set-top boxes, setting up in-home WiFi, and installation of customers\u2019 own devices. Revenue from installation services is recognized as revenue at a point in time (at completion of the installation).
A contract asset is recognized if the amount of revenue recognized is higher than the amount charged to the customer and the right to payment of the consideration by the customer is conditional. CPE that is considered part of KPN\u2019s network is capitalized as part of property, plant and equipment as KPN retains ownership and control over the economic benefits, and is not considered a separate performance obligation nor an identified asset in terms of IFRS 16: Leases.
Transition and transformation projects for implementing new services to large business customers (for example workspace management services) are considered separate performance obligations if the customer can benefit from the project deliverables on their own and the project deliverables are separately identifiable from other goods or services promised in the contract. An example is the set-up of a new ICT environment with improved functionality for the customer that is separable from the recurring ICT services (no significant integration with KPN systems and transferable to another service provider). If the project deliverables are not sold standalone, the transaction price is allocated to both the project deliverables and the recurring services on the basis of costs plus the overall contract margin. This allocation method results in a contract asset (or liability) if the revenue allocated to the project is higher (or lower) than the one-off project fee invoiced to and paid by the customer. Project revenue is recognized over time during the project phase, using the percentage of completion method. After completion of the project, the contract asset or liability is amortized over the remaining minimum contract period of the recurring services, in principle on a linear basis.
The project is not considered a separate performance obligation if it has no independent value for the customer and is not separable from the recurring services.
Sale of peripheral equipment and/or software licenses with significant installation services or integration with other services delivered by KPN, is not considered a separate performance obligation and is recognized as service revenue in the project phase.
Revenue for licenses combined with ongoing support and/or integrated with recurring workspace services is recognized over time.
The Wholesale segment bills customers at (regulated) rates that may be disputed by other operators and regulators. KPN only recognizes revenue to the extent that it is highly probable that a subsequent significant reversal will not occur. A liability is recognized if the invoiced revenue is not considered highly probable.
New subscriptions for telecoms services may be bundled with the sale and delivery of peripheral equipment. The peripheral equipment is considered a separate performance obligation and is recognized as revenue at a point in time (upon delivery of the equipment). The total transaction price of the bundled contract is allocated to the peripheral equipment and the subscription, based on their relative standalone selling prices. A contract asset is recognized if the amount of revenue allocated to the peripheral equipment is higher than the amount charged to customers upfront if the payment to be received for the peripheral equipment is conditional on the delivery of telecoms services, whereas a financial receivable is recognized if the payment to be received is unconditional.
The handsets sold and delivered by third parties, related to KPN subscription contracts, do not qualify as performance obligations for KPN. Handset-related dealer fees result in an unbilled receivable in the statement of financial position, which is decreased when handset installments are billed to end-customers.
KPN applies the practical expedients provided in IFRS 15 under which disclosure of amounts of consideration allocated to the remaining performance obligations (unsatisfied or partially satisfied) do not need to be disclosed. This applies to contracts with an original expected duration of less than one year or when KPN bills a fixed amount for network services provided. KPN recognizes revenue from network services in the amount to which KPN has a right to invoice customers and this amount corresponds directly with the value of KPN\u2019s performance completed to date.
The core principle is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which KPN expects to be entitled in exchange for those goods or services. Revenue is recognized when it is probable that the economic benefits associated with a transaction will flow to KPN and the amount of revenue and associated costs can be measured reliably.
KPN follows IFRS 15's five-step process to recognize revenue. After a contract with a customer has been entered into, the separate performance obligations are identified, which are the distinct goods and services promised to the customer (the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer, and the transfer of goods or services to the customer is separately identifiable from other promises in the contract). Next, the transaction price is determined and allocated to the separate performance obligations, based on relative standalone selling prices (based on our price lists if the goods or services are sold separately). The final step is to recognize revenue when a performance obligation is satisfied. Revenue is recognized either at a point in time or over time. In general, telecoms and IT services are delivered over time, whereas handsets and peripheral and network equipment, if considered as separate performance obligations, are delivered at a point in time.
Revenue for variable considerations, including revenue under dispute, is recognized only when the revenue is considered highly probable, which in some cases requires significant judgment. An adjustment for the time value of money is made to a transaction price for the effects of financing if the time between recognition of revenue and cash receipt is expected to exceed 12 months and this provides the customer or KPN with a significant benefit.
For services or goods delivered by subcontractors, KPN determines whether its performance obligation is to provide the specified goods or services itself (KPN acts as a principal) or to arrange for another party to provide those goods or services (KPN acts as an agent), based on the agreed terms and conditions with the customer and the sub-contractor as well as the nature of the goods and services promised to the customer. When KPN acts as an agent, the revenue recognized is not the gross amount but the net amount that KPN is entitled to retain for its services as the agent.
Other income includes net gains on the sale of tangible or intangible assets, net gains on the sale of subsidiaries, and other gains not related to KPN\u2019s ordinary operating activities.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
Costs of goods and services are costs incurred in the context of a sales transaction and include subscriber acquisition and retention costs and traffic expenses. These costs are expensed as incurred, except handset fees paid to dealers and transaction-related dealer commissions that are capitalized and amortized over the contract term. The cost of a handset is expensed when the handset is sold (as incurred), both as an individual sale or as a component of a transaction in combination with a subscription.
Information technology (IT) expenses relate to KPN\u2019s IT environment and include licenses and maintenance expenses for software and/or IT hardware when not directly related to a sales transaction. Technical infrastructure (TI) expenses are expenses related to KPN\u2019s fixed and mobile networks. Personnel expenses are all expenses related to KPN\u2019s workforce, both related to own employees and external personnel from employment agencies.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
The current income tax expense is calculated in accordance with the prevailing tax regulations and rates, taking into account non-taxable income and non-deductible expenses. The current income tax expense reflects the amount for the current reporting period that KPN expects to recover from or pay to the tax authorities. Income tax related to items recognized directly in equity/OCI is recorded in equity/OCI and not in profit or loss, with the exception of perpetual hybrid bonds classified as equity.
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and liabilities and their carrying values. Deferred tax assets (DTAs) are recognized for deductible temporary differences, the carry-forward of unused tax credits, and any unused tax losses. DTAs are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be used. Both recognized and unrecognized DTAs are reassessed on each reporting date based on available projections. If future taxable profits are insufficiently available, derecognition may become inevitable, unless certain exceptions can be applied. DTAs are recorded for deductible temporary differences associated with investments in subsidiaries and associates. They are recorded only to the extent that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be used.
Deferred tax liabilities (DTLs) are recognized for all taxable temporary differences except when they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the profit or loss reported in the statement of profit or loss nor the taxable profit or loss. Also, no DTLs are recorded for taxable temporary differences associated with investments in subsidiaries and associates when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates KPN expects to be applicable in the year when the asset is realized or the liability is settled based on enacted or substantially enacted tax laws.
DTAs and DTLs are netted if there is a legally enforceable right to offset current tax assets against current tax liabilities and the DTAs/DTLs relate to income taxes levied by the same taxation authority on the same taxable entity or if, in the case of different taxable entities, there is an intention either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
KPN\u2019s management periodically evaluates positions taken in the tax returns against situations in which uncertainty on a tax position exists over whether the relevant taxation authority will accept the tax treatment under law. In line with IFRIC 23, these uncertain tax positions (UTP) are recognized when it is concluded that it is not probable that the taxation authority will accept an uncertain tax treatment. When these criteria are not met, these positions are classified as contingent liabilities, unless the outflow of economic resources is considered remote.
PPE category | Depreciation period |
|---|---|
Land | No depreciation |
Buildings | 14-33 years |
Network equipment | 3-7 years |
Fiber network infrastructure | 30 years |
Copper network infrastructure | 5-10 years |
Office equipment | 4-10 years |
The assets\u2019 residual values and useful lives are reviewed at least annually and adjusted if appropriate.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
Level 1: Fair value of instruments traded in active markets and based on quoted market prices.
Level 2: Instrument is not traded in an active market and fair value is determined by using valuation techniques based on maximum use of observable market data for all significant inputs.
Level 3: One or more of the significant inputs are not based on observable market data; the fair value is estimated using models and other valuation methods.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
Treasury shares are accounted for at cost, representing the market price on the acquisition date. The proceeds on delivery of the treasury shares are recognized directly in the other reserves.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
Provisions for asset retirement obligations, restructuring costs and legal claims are recognized when KPN has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, these positions are classified as contingent liabilities, unless the cash outflow is considered remote.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure required to settle the present obligation at balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.
At the commencement date of a lease (i.e. the date on which the underlying asset of the lease is available for use by KPN), KPN recognizes a lease liability measured at the present value of future lease payments to be made over the term of the lease. This includes fixed fees (including in-substance fixed payments), lease incentives (such as rent-free periods or fee discounts), variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. KPN does not have purchase options to be taken into account. Penalties for early termination of a lease are not included when KPN is reasonably certain that the related early termination will not take place.
All KPN contracts that contain variable lease payments depend on a consumer price index or a rate. However, should other types of fees occur, these variable fees will be accounted for in the operating expenses.
After the commencement date, the lease liabilities increase due to the accrual of interest and decrease due to the payments of fees due. The lease liabilities are remeasured when a change occurs in fees due, the lease term is deemed reasonably certain and/or there are changes to the scope of a lease. Upon remeasurement of the lease liability of a contract, the applied discount rate (incremental borrowing rate) is revised unless the remeasurement relates to a fee change following a change in the consumer price index or rate.
The total lease liability recognized is split into a non-current and a current portion. The current lease liabilities reflect only the part of the payments due within one year related to the repayment of the total lease liabilities.
KPN determines the lease term as the non-cancelable term of a contract together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it is reasonably certain not to be exercised.
KPN applies judgment when assessing if the use of an option is reasonably certain. Factors included are KPN\u2019s asset and network strategy, technological developments, and other circumstances that may impose an economic incentive affecting the expected use of an underlying asset. For vehicles, renewal options are not included in the initial assessment of the lease term as KPN\u2019s policy prescribes the return of vehicles to the lessor at the end of the lease term.
After the commencement of a lease, KPN reassesses the lease term if there is a significant event or change in circumstances that is within KPN\u2019s control and affects KPN\u2019s ability to exercise or not to exercise the option to renew or to terminate a lease.
The implicit discount rates of KPN\u2019s leases are not readily available, with the exception of vehicles. KPN applies its applicable incremental borrowing rate to determine the discounted value of the lease liabilities. Upon modification of a lease, the lease liability is remeasured using the applicable discount rate at the date of the remeasurement. KPN\u2019s incremental borrowing rates are mainly determined using a risk-free rate combined with a spread reflecting KPN\u2019s credit risk. The applicable rate per contract is primarily dependent on the total expected term of a lease at its commencement date (new leases) or the total expected remaining lease term in the event of a remeasurement of a lease.
Right-of-use assets are recognized at the commencement date of a lease as counterpart to the lease liabilities. The right-of-use assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for any remeasurement in the corresponding lease liabilities. The cost of the right-of-use assets includes the initially recognized amount of the corresponding lease liabilities, initial direct costs incurred in obtaining the lease (if any) and lease payments made at or before commencement of the lease. Lease incentives received are deducted from the carrying value of the right-of-use assets.
The right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Right-of-use assets are subject to impairment.
KPN does not apply the practical expedients for low-value leases (leases of an underlying asset with a value of less than \u20ac5,000) and short-term leases (leases with a total expected term of less than 12 months) except for short-term rental vehicles.
For vehicle leases, KPN applies the practical expedient not to separate non-lease components from lease components. Therefore, the full monthly lease fees are reflected in KPN\u2019s statement of financial position. For all types of leased assets, electricity and fuel-related expenses remain part of operating expenses.
Leases where KPN as lessor retains a significant portion of the risk and rewards of ownership of the lease asset are classified as operating leases. The assets remain on the balance sheet and are depreciated over the assets\u2019 useful life.
Lease payments received from lessees are recognized as revenue on a straight-line basis over the lease period.
If KPN acts as a lessor in a finance lease, the transaction is accounted for as a normal sale and the present value of the lease payments to be received is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is deferred and recognized as interest over the lease term.
Trade and other payables are classified as \"borrowings\" within KPN\u2019s financial liabilities. For the accounting policy, see Note 13.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
KPN uses the acquisition method to account for business combinations. The consideration paid is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange.
Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date. When a business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in the P&L.
Contingent considerations are recognized at fair value at acquisition date and subsequent changes to the fair value are recognized in the P&L. Contingent considerations classified as equity are not remeasured and subsequent settlement is counted for within equity.
For each business combination, KPN elects to recognize any non-controlling interest in the acquiree either at fair value or at the proportionate share in the acquiree\u2019s net assets.
Acquisition-related costs are expensed as incurred.
The excess of the consideration paid, non-controlling interests recognized and the acquisition date fair value of any previous equity interests in the acquiree over the fair value of KPN\u2019s share of the net assets acquired is recorded as goodwill. If negative goodwill occurs (bargain purchase), the difference is recognized directly in the P&L.
KPN's consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code, under the historical cost convention, except for certain equity investments accounted for using the equity method, and certain equity investments and derivative financial instruments measured at fair value, and on a going-concern basis.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i6644": { "value": "KPN's consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code, under the historical cost convention, except for certain equity investments accounted for using the equity method, and certain equity investments and derivative financial instruments measured at fair value, and on a going-concern basis.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6650": { "value": "KPN's consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union (EU) and with the statutory provisions of Part 9, Book 2 of the Dutch Civil Code, under the historical cost convention, except for certain equity investments accounted for using the equity method, and certain equity investments and derivative financial instruments measured at fair value, and on a going-concern basis.
All amounts are presented in millions euros (\u20ac) unless stated otherwise. Certain figures may not tally exactly due to rounding. In addition, certain percentages may have been calculated using rounded figures.
The non-material restatements for 2024 relate only to segment reporting for comparability, see Note 3.
KPN\u2019s segment information for 2024 includes a non-material revenue restatement (from Wholesale to Business) and expense restatements between various segments (with a maximum of \u20ac5m) mainly relating to personnel expenses due to changes in the organizational structure.
Some non-material restatements of the disaggregation of the revenues 2024 per segment have taken place for reasons of transparency and clarity. Within B2B, SME service revenues now include the mid-market segment consisting of companies with 150 to 650 FTEs, which was previously accounted for in divisions LCE and Tailored Solutions. \u20ac13m service revenues LCE and \u20ac7m service revenues Tailored Solutions have been restated to service revenues SME in 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6652": { "value": "KPN applies new standards and amendments issued by the International Accounting Standards Board (IASB), when effective and endorsed by the European Union. KPN has not early adopted any standards.
The endorsed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability have become effective as of 1 January 2025. These amendments did not have a significant impact.
The IASB has issued several new standards and amendments to existing standards with an effective date of 1 January 2026 or later.
The following standards and amendments are effective as of 1 January 2026:
Amendments to IFRS 7 and IFRS 9: Amendments to the Classification and Measurement of Financial Instruments;
Amendments to IFRS 7 and IFRS 9: Contracts Referencing Nature-dependent Electricity;
Annual improvements to IFRS Accounting Standards - Volume 11.
The following standards and amendments are effective as of 1 January 2026 (or later) but have not yet been endorsed:
IFRS 18: Presentation and Disclosure in Financial Statements;
IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates- Translation to a Hyperinflationary Presentation Currency.
KPN does not expect that these standards and amendments will have a material impact but this assessment has not been finalized yet.
KPN applies new standards and amendments issued by the International Accounting Standards Board (IASB), when effective and endorsed by the European Union. KPN has not early adopted any standards.
The endorsed amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability have become effective as of 1 January 2025. These amendments did not have a significant impact.
The IASB has issued several new standards and amendments to existing standards with an effective date of 1 January 2026 or later.
The following standards and amendments are effective as of 1 January 2026:
Amendments to IFRS 7 and IFRS 9: Amendments to the Classification and Measurement of Financial Instruments;
Amendments to IFRS 7 and IFRS 9: Contracts Referencing Nature-dependent Electricity;
Annual improvements to IFRS Accounting Standards - Volume 11.
The following standards and amendments are effective as of 1 January 2026 (or later) but have not yet been endorsed:
IFRS 18: Presentation and Disclosure in Financial Statements;
IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IFRS 19: Subsidiaries without Public Accountability- Disclosures;
Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates- Translation to a Hyperinflationary Presentation Currency.
KPN does not expect that these standards and amendments will have a material impact but this assessment has not been finalized yet.
KPN\u2019s consolidated financial statements include the financial results of its subsidiaries and incorporate KPN\u2019s share of the results from associates and joint ventures.
Subsidiaries are all entities directly or indirectly controlled by KPN. \"Control\" is defined as the power over an entity, i.e. the ability to govern its financial and operating policies, resulting in obtaining the variable returns from the entity\u2019s activities and effect those returns through its power.
Subsidiaries are fully consolidated from the date on which control is obtained by KPN and are deconsolidated from the date on which KPN\u2019s control ceases. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated.
Changes in ownership interests in subsidiaries without change of control that do not result in loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
For consolidation purposes, the results and financial position of subsidiaries are translated into euros at the closing rate on the date of the financial position (assets and liabilities) or at the average exchange rates applicable for the specific reporting period (income and expenses). All resulting exchange differences are recognized in OCI.
KPN\u2019s consolidated financial statements include the financial results of its subsidiaries and incorporate KPN\u2019s share of the results from associates and joint ventures.
Subsidiaries are all entities directly or indirectly controlled by KPN. \"Control\" is defined as the power over an entity, i.e. the ability to govern its financial and operating policies, resulting in obtaining the variable returns from the entity\u2019s activities and effect those returns through its power.
Subsidiaries are fully consolidated from the date on which control is obtained by KPN and are deconsolidated from the date on which KPN\u2019s control ceases. All intercompany transactions, balances and unrealized results on transactions with subsidiaries are eliminated.
Changes in ownership interests in subsidiaries without change of control that do not result in loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
The consolidated financial statements are presented in euros (\u20ac), which is KPN\u2019s presentation currency as well as the functional currency of KPN's statutory entity.
Transactions in foreign currencies are translated into euros using the exchange rates applicable at transaction date. At reporting date, monetary assets and liabilities denominated in foreign currencies are translated to euros using the rates at reporting date. Exchange rate differences are recognized in profit or loss \u2013 except when these differences are related to qualifying cash flow hedges and qualifying net investment hedges, in which case the exchange rate differences are recorded in other comprehensive income (OCI).
Exchange rate differences on non-monetary assets and liabilities (which are carried at fair value) are reported as part of the fair value gain or loss from that asset or liability. Exchange rate differences arising from the translation of the net investment in foreign entities, of borrowings and of other currency instruments designated as hedges of such investments are recognized in OCI.
For consolidation purposes, the results and financial position of subsidiaries are translated into euros at the closing rate on the date of the financial position (assets and liabilities) or at the average exchange rates applicable for the specific reporting period (income and expenses). All resulting exchange differences are recognized in OCI.
The statement of cash flows is prepared using the indirect method. Cash flows denominated in currencies other than euros are translated at average exchange rates. Cash flows relating to interest and taxes on profits and tax deductions relating to interest on perpetual hybrid bonds are included in the cash flow from operating activities. Tax payments directly related to the disposal of subsidiaries are presented as part of the cash flows from investing activities when separately identifiable. The consideration paid in cash for acquired subsidiaries is included in the cash flow from investing activities, net of cash acquired. Cash flows resulting from the disposal of subsidiaries are disclosed separately, net of cash sold.
Significant accounting estimates, judgements and assumptions made by management are evaluated periodically and are based on historic experience and other factors, including expectations of future events thought to be reasonable under the circumstances. Actual results may deviate from the estimates applied. Estimates are revised when material changes to the underlying assumption occur.
The accounting estimates, judgements and assumptions deemed significant to KPN\u2019s consolidated financial statements relate to:
Subjects | Notes |
|---|---|
Determination of deferred tax assets for limitations on depreciation for real estate and provisions for tax contingencies | |
Determination of value-in-use of cash-generating units for goodwill impairment testing | Note 11 |
Assessments of exposure to credit risk and financial markets risk | Note 13.4 |
Assessment required to determine whether or not to recognize a provision for idle cables, which are part of a public electronic communications network | |
The assessment of the lease terms deemed reasonably certain of KPN's lease contracts and the incremental borrowing rate used to measure the lease liabilities | Note 19 |
Assessments whether revenue for variable consideration is probable or highly probable. This concerns revenue related to disputes and revenue related to VAT regarding unused multipurpose bundles. | |
Several assessments related to KPN\u2019s 50% interest in Glaspoort B.V. (classified as a joint venture): | |
Several assessments related to KPN\u2019s 51% interest i.e. control in Althio B.V.: | Note 21 |
- The purchase price allocation related to the acquisition of Althio B.V. | Note 21 |
In preparing its financial statements, KPN has applied the concept of materiality to the presentation and level of disclosures. Only essential and mandatory information is disclosed that is relevant to a reader\u2019s understanding of these financial statements.
Revenue for variable considerations, including revenue under dispute, is recognized only when the revenue is considered highly probable, which in some cases requires significant judgment. An adjustment for the time value of money is made to a transaction price for the effects of financing if the time between recognition of revenue and cash receipt is expected to exceed 12 months and this provides the customer or KPN with a significant benefit.
| Tax loss & other carry-forwards1 | Bonds & | Land, Buildings, Property, plant and equipment3 | Lease liabilities4 | Other | Offset against deferred tax liabilities | Total |
|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 259 | 40 | 84 | 218 | 29 | -520 | 111 |
Income statement benefit/(charge) | - | -5 | -26 | -17 | 2 | - | -47 |
Transfer to current tax | -74 | - | - | - | - | - | -74 |
Tax charged to OCI | - | -6 | - | - | - | - | -6 |
Other | - | - | - | - | -1 | 17 | 16 |
Balance at 31 December 2024 | 185 | 30 | 58 | 201 | 29 | -503 | - |
Income statement benefit/(charge) | - | - | 2 | -28 | 1 | - | -25 |
Transfer to current tax | -82 | - | - | - | - | - | -82 |
Tax charged to OCI | - | -17 | - | - | - | - | -17 |
New consolidations5 | - | - | -10 | 1 | 5 | - | -4 |
Other | - | - | - | - | -2 | 130 | 128 |
Balance at 31 December 2025 | 1036 | 13 | 517 | 174 | 33 | -373 | - |
| Software development1 | Goodwill depreciation2 | PPA3 | PPE: arbitrary | Right of use assets4 | Other5 | Offset against deferred tax assets | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 77 | 117 | 27 | 111 | 187 | 1 | -520 | - |
Income statement charge/(benefit) | 6 | - | -9 | -15 | -15 | - | - | -32 |
Other | - | - | 25 | - | - | - | 17 | 42 |
Balance at 31 December 2024 | 83 | 117 | 43 | 96 | 172 | 1 | -503 | 10 |
Income statement charge/(benefit) | -4 | - | -11 | -18 | -18 | 1 | - | -49 |
New consolidations6 | - | - | 41 | - | 2 | - | - | 43 |
Other | - | - | - | - | - | - | 130 | 130 |
Balance at 31 December 2025 | 79 | 117 | 73 | 78 | 157 | 3 | -373 | 134 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
Koninklijke KPN \u2013 corporate tax1 | 400 | 103 | 103 | 719 | 185 | 185 |
Other | 1002 | 21 | - | 1132 | 24 | - |
Total KPN Group3 | 499 | 124 | 103 | 832 | 209 | 185 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
2026 | 2 | - | - | 4 | 1 | - |
2027 | - | - | - | - | - | - |
2028 | 7 | 1 | - | 8 | 2 | - |
2029 | 8 | 2 | - | - | - | - |
Later | 37 | 8 | - | 51 | 11 | - |
Unlimited | 445 | 113 | 103 | 769 | 196 | 185 |
Total | 499 | 124 | 103 | 832 | 209 | 185 |
In accordance with IAS 36, KPN assesses goodwill for impairment at the end of each year and when a triggering event occurs. The annual impairment tests at 31 December 2025 did not indicate that the book value of KPN\u2019s goodwill is not recoverable. KPN\u2019s market capitalization on 31 December 2025 was higher than the book value of its equity. A test was performed of the recoverable amount of the book value of each cash-generating unit (CGU), based on its value-in-use, which was determined by using the discounted cash flow method.
CGU | EBITDA | Capex | Discount | Terminal sales growth1 |
|---|---|---|---|---|
Consumer 2025 | 51% \u2013 54% | 18% \u2013 25% | 6% \u2013 7% | 2.0% |
Consumer 2024 | 52% \u2013 54% | 18% \u2013 27% | 6% \u2013 7% | 1.5% |
Business 2025 | 31% \u2013 33% | 12% \u2013 18% | 6% \u2013 7% | 2.0% |
Business 2024 | 32% \u2013 37% | 10% \u2013 15% | 6% \u2013 7% | 1.5% |
The EBITDA margins and capex intensity shown in the table above are the highest and lowest percentages used to determine the cash flows in the period up to 2035 and used to determine the terminal value. The wide variation in capex intensity is due to high levels of capex in the coming years related to the fiber rollout, which will be significantly lower after 2027. The discount rate shown in the table is the pre-tax weighted average cost of capital (WACC) used to determine the value-in-use.
The cash flow projections (including estimated EBITDA, capex, change in working capital) used to determine the value-in-use of each CGU are management\u2019s best estimate based on the updated strategic plan, which covers a five year period, followed by a five year extrapolation period and a terminal value for the years after 2035. During the extrapolation period, revenue growth is expected to develop linearly to the terminal growth rate used to calculate the terminal value and the EBITDA margin is kept stable. This forecast period is used because of the long investment cycles (in the telecommunications industry) and our investments planned. The focus is gradually shifting from laying the basic infrastructure, which will have a significantly smaller scale after 2027, to connecting and activating homes and offices, the effect of which will materialize after the five year planning period. Analyses of the forecasts and the actuals realized demonstrate that the forecasts were accurate in the past.
KPN has outlined a climate transition plan to address the impact of climate change and other sustainability topics on KPN's business model. For example, the demand for renewable energy exceeds supply, and energy storage technology is still developing. Limited power capacity and connections could lead to grid congestion, with the risk of disrupting KPN\u2019s networks and services through power outages. Climate change could lead to extreme weather events, such as flooding and heat stress, which could damage KPN's infrastructure and pose risks of temporary or long-term network disruptions.The climate transition plan is embedded in and aligned with KPN\u2019s overall business strategy. More specifically, it is linked to the financial and business planning of our Connect, Activate & Grow strategy and includes capex in the short and long term to, for example, mitigate the impact of climate change.
The WACC is calculated using a multi-factor pricing model. Long-term, backward looking data, provided by an independent valuation services provider, is used to determine the\u00a0equity risk premium (ERP) as input for the WACC calculation. This is based on a regular review of fluctuations in the eurozone\u2019s economic and financial market conditions, followed by periodic reassessment of the ERP. A size premium is included in the calculation of the WACC which is supported by empirical studies showing that smaller companies tend to have higher average rates of return compared with larger companies.
The terminal growth rate for the period after 10 years is updated consistently in line with realized growth and inflation expected in the long term and was 2.0% in 2025 and 1.5% in 2024 for both significant CGUs. To achieve this growth, additional capex is taken into account.
The annual impairment tests resulted in a positive headroom at 31 December 2025 and 31 December 2024.
The sensitivity analyses for both significant CGUs showed that a possible reasonable change in key assumptions would not lead to an impairment. This analysis was performed for each key assumption separately such as a 1% higher discount rate, a 20% higher capex, a 1% lower terminal growth rate or a 20% lower EBITDA. Furthemore, if the cash flow projections would be limited to the five year planning period, this would also not lead to a goodwill impairment for both significant CGUs.
Glaspoort is classified as a joint venture based on the assessment of ownership and voting power (50/50) with the joint venture partner, Drepana Investment Holding B.V., and the joint control established through the joint venture agreement between the shareholders. The assessment includes the following:
KPN's option to purchase one additional share in Glaspoort. This option is exercisable between the 5th and the 8th anniversary of the transaction (9 June 2021) provided certain criteria are met, and in any case after the 8th anniversary.
KPN's influence on Glaspoort's relevant activities through KPN's presence in the governance structure. The annual budget and substantive reserved matters requires unanimous approval by KPN and Drepana.
KPN is the anchor tenant on Glaspoort's network and will also be one of its suppliers through a number of operational contracts between KPN and Glaspoort.
The assessment as to whether joint control remains in place is reviewed when relevant facts or circumstances change.
Upon the sale in 2021 of the 50% interest in Glaspoort to Drepana Investments Holding, KPN received a cash consideration upon deal close of \u20ac233m and a contingent cash receivable of \u20ac234m. The contingent cash receivable, to be received in annual installments based on Glaspoort's rollout progress, is classified as a financial asset measured at fair value through profit or loss. The contingent cash receivable was initially valued at \u20ac218m. At 31 December 2025, the carrying value was \u20ac118m (2024: \u20ac155m), of which \u20ac34m current (2024: \u20ac40m). In 2025, the book value was increased by \u20ac6m interest (2024: \u20ac8m) and decreased by \u20ac41m (2024: \u20ac26m) due to received payment. The fair value adjustment was \u20ac2m loss (2024: nil). Both interest and fair value adjustment were recognized in other financial results in 2025.
Based on Glaspoort's current rollout plan, KPN expects the final payment in 2029. The fair value of this contingent receivable is deemed equal to the net present value of the full amount of the installments to be received according to the expected rollout schedule as included in Glaspoort's most recent business plan. A weighted average discount rate of 4.9% has been used based on the following elements:
A base-rate using mid-swap rates to account for the time value of money, plus;
A credit spread mark-up to account for the risk of non-payment based on AA-rated credit curves resulting in a weighted average spread of ~0.2% over a 3-year tenor, plus;
A mark-up to reflect the rollout risk (mostly the risk of delay).
A 50 basis points increase (decrease) in the discount rate would lead to a \u20ac0.6m decrease (increase) in the carrying value at 31 December 2025.\u00a0
KPN is exposed to a variety of financial risks. The overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on KPN\u2019s financial position and performance.
Derivatives are used to hedge certain risk exposures (see Note 13.3).
KPN\u2019s key financial risks are:
Credit and counterparty risk;
Liquidity risk;
Market risk.
KPN\u2019s Treasury department manages the financial risks according to policies approved by the Board of Management and Supervisory Board. These policies are established to identify and analyze financial risks, set appropriate risk limits and controls, and monitor adherence to those limits.
KPN\u2019s Treasury department continuously monitors conditions in relevant capital markets and the potential impact on KPN\u2019s liquidity position, sources of financing and financial counterparties, which all remained within acceptable risk limits. KPN did not suffer any material impact on its liquidity reserves and its ability to raise financing remained very strong.
Credit risk arises from the possibility of asset impairment occurring when counterparties are unable to meet their obligations in transactions involving financial instruments. KPN\u2019s counterparty policy sets limits for the maximum exposure per counterparty, which are primarily based on credit ratings, investment periods and concentration limits. The minimum counterparty credit rating is BBB- for cash balances and BBB+ for entering into new derivative transactions. Capital preservation is KPN\u2019s main priority when investing excess cash.
The provision for asset retirement obligations (ARO) relates to radio sites and leased buildings and is based on assumptions of the estimated costs of removal, discount rate and estimated period of removal, which vary per type of asset. In 2025, \u20ac13m was added to the ARO provision (2024: \u20ac6m) and \u20ac9m was released (2024: \u20ac1m). Of the addition to the ARO provision in 2025, \u20ac12m was recognized as an increase in the carrying value of the capitalized asset retirement costs (ARC), which is included in Property, plant and equipment (2024: \u20ac5m). Of the release of the ARO provision in 2025, \u20ac9m was recognized as a decrease in the carrying value of the ARC (2024: \u20ac0).
As defined in the Telecommunications Act, the obligation for landlords to tolerate cables terminates as soon as those cables have been idle for a continuous period of 10 years. The covenant the telecoms sector concluded with a representation of landlords (\"Uitvoeringsafspraken Verwijderen Ongebruikte Telecomkabels\") states there must be a clear usefulness and necessity to remove the copper cables, also taking into account the expected costs of the removal operation. There are major uncertainties as to (1) whether and when landlords will place a reasonable request for removal of idle cables that meet the conditions of the covenant and (2) the amount and timing of any outflow. In our opinion, it is therefore not possible to make a reliable estimate of the amount that is required to meet the obligation and hence no provision for future claims was recognized at 31 December 2025 nor at 31 December 2024. There were also no material actual claims that need provisioning.
Most of KPN\u2019s lease contracts include extension (renewal) or termination options in line with industry practice. In general these options do not contain rights for exercising termination options or renewing leases with favourable terms and conditions. KPN exercises significant judgment in determining whether these options are reasonably certain to be exercised (see Note 2). The assessments are updated annually or when a significant change in economic circumstances occurs. Periods covered by renewal options deemed reasonably certain or early termination options that are reasonably certain not to be exercised are included in the total lease liability.
A significant number of KPN\u2019s contracts have an unlimited number of extension options. Only those deemed reasonably certain are included in the lease term and therefore the lease liability. A reliable estimate of the potential future lease payments related to periods beyond the lease terms reflected on the balance sheet cannot be provided. This affects mostly the mobile network as well as real estate. Vehicles are generally returned by the end of their term.
On 13 February 2025, KPN and ABP completed the transaction resulting in the creation of a new open tower company, named Althio B.V. (\"Althio\"). The transaction was approved by the ACM on 6 February 2025. KPN holds 51% of the shares in Althio, while the remaining 49% shares are owned by Stichting Depositary APG Infrastructure Pool 2016, an investment entity managed by ABP.
KPN has assessed that it has control over Althio. The assessment includes, among other factors, the following:
KPN's influence on Althio's relevant activities through KPN's presence in the governance structure;
KPN has a majority of the voting rights and has the right to direct key operational and financial decisions.
The transaction resulted in a cash payment of \u20ac113m and a non cash-payment in the form of a demerger of KPN's passive mobile infrastructure to Althio in exchange for a controlling 51% interest in Althio. This demerger has been treated as the sale of a subsidiary without the loss of control. KPN recognized a book gain of \u20ac54m directly in equity for the disposal of 49% of its passive mobile infrastructure, effectively, of which the fair value is \u20ac72m.
KPN performed a purchase price allocation of the acquired passive mobile infrastructure of NOVEC and OTC amounting to \u20ac148m. The total consideration in the purchase price allocation consists of the cash payment of \u20ac113m, the fair value of \u20ac72m of KPN's passive mobile infrastructure effectively disposed less the amount of \u20ac52m allocated to the termination of the existing lease contracts. In addition, KPN will make a capital contribution of \u20ac14m. The purchase price allocation of the acquired passive mobile infrastructure of NOVEC and OTC is as stated in the table.
The goodwill of \u20ac115m reported as at 30 June 2025 was provisional, as the Purchase Price Allocation (PPA) had not yet been finalized. Goodwill is reduced with \u20ac20m for a capital contribution KPN is obliged to make and due to a reduction of the non-cash payment in the form of the demerger of KPN\u2019s passive mobile infrastructure to Althio with \u20ac28m. The latter is due to adverse changes in the (projected) performance of that business which had not yet been taken into account in determining the fair value of KPN's passive mobile infrastructure demerged to Althio.
The fair values of the identifiable assets acquired and liabilities assumed were determined using valuation techniques that require significant judgment. External valuation specialists assisted management in applying discounted cash flow models and market-based approaches. Key assumptions included expected future cash flows and discount rates. The intangible assets consist of the recognition of the external customer base of OTC and NOVEC (\u20ac153m), so excluding KPN. The goodwill recognized is based on the partial goodwill method and relates to future cash flows to be realized from transactions with KPN and additional external customers and from cost savings. This goodwill is not tax deductible.
On 4 April 2024, KPN acquired 100% of the shares in Youfone Nederland B.V. and Youfone Zakelijk B.V. (together referred to as \"Youfone\").
The purchase price allocation resulted in the recognition of customer bases (\u20ac90m), trade names (\u20ac7m), a deferred tax liability (\u20ac25m), an earn-out provision (\u20ac9m) and goodwill (\u20ac134m). The amount of goodwill deductible for tax purposes is \u20ac0.2m. The earn-out paid in 2025 amounts to \u20ac7m.
KPN is involved in a number of legal and tax proceedings that have arisen in the ordinary course of its business and in discontinued operations, including commercial, regulatory and other proceedings. Periodically, KPN carefully assesses the likelihood that legal and tax proceedings may lead to a cash in- or outflow. KPN recognizes provisions in case of a cash outflow if and when the chance is estimated as probable and a reliable estimate of the cash outflow can be made. KPN recognizes the assets in case of a cash inflow if and when the chance is estimated as virtually certain. When these criteria are not met, such matters are classified as contingent assets or liabilities, unless the cash inflow is considered possible or the cash outflow is considered remote.
However, the outcome of such proceedings can be difficult to predict with certainty and KPN can offer no assurances. In some cases, the impact of a legal proceeding may be more strategic than financial or such impact cannot properly be quantified. A description is given below of legal-related contingent assets and liabilities that could have a material impact for KPN.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6703": { "value": "Operating segments are reported in accordance with IFRS 8: Operating Segments in a manner consistent with the internal reporting to KPN\u2019s CEO, who is the chief operating decision-maker.
KPN\u2019s segment information for 2024 includes a non-material revenue restatement (from Wholesale to Business) and expense restatements between various segments (with a maximum of \u20ac5m) mainly relating to personnel expenses due to changes in the organizational structure.
Almost all of KPN\u2019s operating activities are in the Netherlands.
KPN\u2019s operating segments comprise Consumer, Business, Wholesale and Network, Operations & IT (NOI). For general information on these segments, see \"Shareholder value\" and \"Customer value\" in this Integrated annual report.
\"Other\" comprises KPN Holding, Corporate Center, group services and eliminations. KPN accounts for its interest in Glaspoort within this segment.
\"Other\" comprises activities that cannot be allocated directly to one of the operating segments. This includes departments such as group business services (including financial accounting), procurement, fiscal affairs and treasury which provides services to the consolidated KPN Group.
As part of the simplification process, KPN has limited the intercompany charges to charges that are considered relevant for tax purposes.
The EBITDA after leases (EBITDA AL) of Consumer, Business and Wholesale represents the contribution margin of these segments while the EBITDA AL of NOI mostly consists of operating expenses. Due to the fact that KPN neither allocates interest expenses to segments nor accounts for taxes in the segments, the disclosure is limited to operating profit for the year.
Investments in property, plant and equipment, and intangible assets (capex) are centrally managed and reported to KPN\u2019s chief operating decision-maker at the consolidated KPN Group level, not at segment level.
For an explanation of EBITDA, EBITDA AL and incidental transactions included in revenues, other income and EBITDA AL, see Appendix 2.
\u20ac\u00a0million | Notes | Consumer | Business | Wholesale | NOI | Total operating segments | Other1 | Total KPN Group |
|---|---|---|---|---|---|---|---|---|
Statement of profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
External revenues2 | \u00a0 | 3,072 | 1,945 | 680 | 50 | 5,748 | 48 | 5,797 |
Other income | [4.2] | - | 1 | - | 31 | 32 | - | 32 |
Inter-division revenues | \u00a0 | - | 2 | - | - | 2 | -2 | - |
Total | [4] | 3,072 | 1,948 | 680 | 82 | 5,783 | 46 | 5,829 |
Operating expenses | \u00a0 | -981 | -1,028 | -195 | -671 | -2,876 | -237 | -3,113 |
EBITDA | \u00a0 | 2,091 | 920 | 485 | -589 | 2,907 | -191 | 2,716 |
Depreciation, amortization and impairments (DA&I) | \u00a0 | -166 | -58 | -9 | -1,066 | -1,298 | -48 | -1,346 |
Operating result | \u00a0 | 1,925 | 862 | 476 | -1,655 | 1,608 | -239 | 1,370 |
Share of profit or loss of associates and joint ventures | [12] | - | 2 | - | - | 2 | -13 | -11 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
EBITDA | \u00a0 | 2,091 | 920 | 485 | -589 | 2,907 | -191 | 2,716 |
DA&I right-of-use assets | [19] | -17 | -6 | -1 | -96 | -119 | -36 | -155 |
Interest lease liabilities | [19] | -2 | - | - | -14 | -16 | -4 | -20 |
EBITDA after leases | \u00a0 | 2,072 | 914 | 484 | -699 | 2,771 | -231 | 2,540 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total assets3 | \u00a0 | 2,569 | 1,372 | 661 | 8,160 | 12,762 | -66 | 12,696 |
Total liabilities | \u00a0 | 513 | 407 | 155 | 6,640 | 7,716 | 1,420 | 9,136 |
\u20ac\u00a0million | Notes | Consumer | Business | Wholesale | NOI | Total operating segments | Other1 | Total KPN Group |
|---|---|---|---|---|---|---|---|---|
Statement of profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
External revenues2 | \u00a0 | 3,035 | 1,878 | 656 | 30 | 5,599 | 4 | 5,603 |
Other income | [4.2] | - | - | - | 29 | 29 | 1 | 31 |
Inter-division revenues | \u00a0 | - | 3 | - | - | 3 | -3 | - |
Total | [4] | 3,035 | 1,881 | 656 | 60 | 5,631 | 2 | 5,634 |
Operating expenses | \u00a0 | -997 | -974 | -173 | -622 | -2,766 | -235 | -3,001 |
EBITDA | \u00a0 | 2,037 | 907 | 483 | -562 | 2,865 | -233 | 2,632 |
Depreciation, amortization and impairments (DA&I) | \u00a0 | -163 | -55 | -9 | -965 | -1,192 | -48 | -1,240 |
Operating result | \u00a0 | 1,874 | 852 | 474 | -1,528 | 1,673 | -281 | 1,392 |
Share of profit or loss of associates and joint ventures | [12] | - | 1 | - | - | 1 | -15 | -14 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
EBITDA | \u00a0 | 2,037 | 907 | 483 | -562 | 2,865 | -233 | 2,632 |
DA&I right-of-use assets | [19] | -16 | -4 | -1 | -72 | -94 | -36 | -130 |
Interest lease liabilities | [19] | -2 | - | - | -16 | -18 | -4 | -23 |
EBITDA after leases | \u00a0 | 2,019 | 903 | 481 | -650 | 2,753 | -273 | 2,479 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total assets3 | \u00a0 | 2,445 | 1,187 | 602 | 7,773 | 12,007 | 540 | 12,547 |
Total liabilities | \u00a0 | 493 | 362 | 111 | 6,504 | 7,471 | 1,543 | 9,014 |
Some non-material restatements of the disaggregation of the revenues 2024 per segment have taken place for reasons of transparency and clarity. Within B2B, SME service revenues now include the mid-market segment consisting of companies with 150 to 650 FTEs, which was previously accounted for in divisions LCE and Tailored Solutions. \u20ac13m service revenues LCE and \u20ac7m service revenues Tailored Solutions have been restated to service revenues SME in 2024.
\u20ac\u00a0million | 2025 | 2024 (restated) |
|---|---|---|
Fixed-mobile service revenues | 1,759 | 1,675 |
Fixed-only service revenues | 700 | 731 |
Postpaid-only service revenues | 305 | 293 |
Legacy/other service revenues | 53 | 62 |
Consumer service revenues | 2,817 | 2,761 |
Non-service revenues1 | 256 | 274 |
Total Consumer revenues | 3,072 | 3,035 |
| \u00a0 | \u00a0 | \u00a0 |
Access & connectivity2 | 657 | 636 |
IT services3 | 110 | 92 |
SME service revenues | 767 | 729 |
Access & connectivity2 | 524 | 512 |
IT services & other3 | 237 | 243 |
LCE service revenues | 761 | 755 |
Tailored Solutions service revenues | 327 | 306 |
Business service revenues | 1,854 | 1,790 |
Non-service & other revenues1 | 93 | 91 |
Total Business revenues | 1,947 | 1,880 |
| \u00a0 | \u00a0 | \u00a0 |
Mobile service revenues | 173 | 156 |
Broadband service revenues | 318 | 316 |
Other service revenues4 | 184 | 180 |
Wholesale service revenues | 676 | 653 |
Non-service revenues | 5 | 3 |
Total Wholesale revenues | 680 | 656 |
| \u00a0 | \u00a0 | \u00a0 |
NOI | 50 | 30 |
Other (incl. eliminations)5 | 46 | 2 |
Total | 5,797 | 5,603 |
Operating segments are reported in accordance with IFRS 8: Operating Segments in a manner consistent with the internal reporting to KPN\u2019s CEO, who is the chief operating decision-maker.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "principalplaceofbusiness-inlinetag-i6702": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7138": { "value": "\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Service revenues | 5,357 | 5,215 |
Non-service revenues | 339 | 356 |
Revenues from contracts with customers | 5,696 | 5,571 |
Rentals and other revenues | 101 | 32 |
Revenues | 5,797 | 5,603 |
Service revenues are all revenues recognized over time and include fees for usage of KPN\u2019s network and facilities, e.g. monthly subscription fees and revenues from customer-specific IT solutions.
Non-service revenues are revenues recognized at a specific point in time and include, for example, sales of handsets and peripheral equipment as well as software licenses sold separately without significant installation or integration with other services.
Rentals and other revenues include royalties related to intellectual property rights (IPR) and site-sharing revenues. The revenue increase in 2025 mainly relates to the settlement of two IPR claims with telecoms vendors in 2025, and to the increase of site-sharing revenues due to the acquisition of Althio.
The application of KPN\u2019s accounting policies on revenue recognition, including relevant judgements, and information about KPN\u2019s performance obligations are summarized below:
Network access is considered a separate performance obligation. Revenue is recognized over time during the subscription period. Content, e.g. TV channels and streaming services, is generally bundled with network access and revenue is recognized on a gross basis.
Revenues for streaming services which are contracted with customers additionally are recognized on a net basis when KPN acts as an agent.
One-off connection fees are not considerations for separate performance obligations as they are considered to be necessary to get network access. The fees charged to customers are recognized as a contract liability and bundled with the performance obligation for network access.
Transaction-related dealer fees paid to acquire or retain subscribers are capitalized as contract costs and expensed on a straight-line basis over the contract term of the underlying customer contract.
Installation services offered to consumers are generally considered a separate performance obligation, as these services have standalone value for the customers. Installation services that are treated as a separate performance obligation include installation of customer premises equipment (CPE), e.g. set-top boxes, setting up in-home WiFi, and installation of customers\u2019 own devices. Revenue from installation services is recognized as revenue at a point in time (at completion of the installation).
A contract asset is recognized if the amount of revenue recognized is higher than the amount charged to the customer and the right to payment of the consideration by the customer is conditional. CPE that is considered part of KPN\u2019s network is capitalized as part of property, plant and equipment as KPN retains ownership and control over the economic benefits, and is not considered a separate performance obligation nor an identified asset in terms of IFRS 16: Leases.
Transition and transformation projects for implementing new services to large business customers (for example workspace management services) are considered separate performance obligations if the customer can benefit from the project deliverables on their own and the project deliverables are separately identifiable from other goods or services promised in the contract. An example is the set-up of a new ICT environment with improved functionality for the customer that is separable from the recurring ICT services (no significant integration with KPN systems and transferable to another service provider). If the project deliverables are not sold standalone, the transaction price is allocated to both the project deliverables and the recurring services on the basis of costs plus the overall contract margin. This allocation method results in a contract asset (or liability) if the revenue allocated to the project is higher (or lower) than the one-off project fee invoiced to and paid by the customer. Project revenue is recognized over time during the project phase, using the percentage of completion method. After completion of the project, the contract asset or liability is amortized over the remaining minimum contract period of the recurring services, in principle on a linear basis.
The project is not considered a separate performance obligation if it has no independent value for the customer and is not separable from the recurring services.
Sale of peripheral equipment and/or software licenses with significant installation services or integration with other services delivered by KPN, is not considered a separate performance obligation and is recognized as service revenue in the project phase.
Revenue for licenses combined with ongoing support and/or integrated with recurring workspace services is recognized over time.
The Wholesale segment bills customers at (regulated) rates that may be disputed by other operators and regulators. KPN only recognizes revenue to the extent that it is highly probable that a subsequent significant reversal will not occur. A liability is recognized if the invoiced revenue is not considered highly probable.
New subscriptions for telecoms services may be bundled with the sale and delivery of peripheral equipment. The peripheral equipment is considered a separate performance obligation and is recognized as revenue at a point in time (upon delivery of the equipment). The total transaction price of the bundled contract is allocated to the peripheral equipment and the subscription, based on their relative standalone selling prices. A contract asset is recognized if the amount of revenue allocated to the peripheral equipment is higher than the amount charged to customers upfront if the payment to be received for the peripheral equipment is conditional on the delivery of telecoms services, whereas a financial receivable is recognized if the payment to be received is unconditional.
The handsets sold and delivered by third parties, related to KPN subscription contracts, do not qualify as performance obligations for KPN. Handset-related dealer fees result in an unbilled receivable in the statement of financial position, which is decreased when handset installments are billed to end-customers.
In 2024 and 2025, the financing component was not significant and therefore not recorded.
Generally, the payment term is between 5 days and 30 days.
In 2025, no revenue was recognized from variable considerations related to performance obligations satisfied (or partially satisfied) in previous years (2024: \u20ac1m).
KPN applies the practical expedients provided in IFRS 15 under which disclosure of amounts of consideration allocated to the remaining performance obligations (unsatisfied or partially satisfied) do not need to be disclosed. This applies to contracts with an original expected duration of less than one year or when KPN bills a fixed amount for network services provided. KPN recognizes revenue from network services in the amount to which KPN has a right to invoice customers and this amount corresponds directly with the value of KPN\u2019s performance completed to date.
Some non-material restatements of the disaggregation of the revenues 2024 per segment have taken place for reasons of transparency and clarity. Within B2B, SME service revenues now include the mid-market segment consisting of companies with 150 to 650 FTEs, which was previously accounted for in divisions LCE and Tailored Solutions. \u20ac13m service revenues LCE and \u20ac7m service revenues Tailored Solutions have been restated to service revenues SME in 2024.
\u20ac\u00a0million | 2025 | 2024 (restated) |
|---|---|---|
Fixed-mobile service revenues | 1,759 | 1,675 |
Fixed-only service revenues | 700 | 731 |
Postpaid-only service revenues | 305 | 293 |
Legacy/other service revenues | 53 | 62 |
Consumer service revenues | 2,817 | 2,761 |
Non-service revenues1 | 256 | 274 |
Total Consumer revenues | 3,072 | 3,035 |
| \u00a0 | \u00a0 | \u00a0 |
Access & connectivity2 | 657 | 636 |
IT services3 | 110 | 92 |
SME service revenues | 767 | 729 |
Access & connectivity2 | 524 | 512 |
IT services & other3 | 237 | 243 |
LCE service revenues | 761 | 755 |
Tailored Solutions service revenues | 327 | 306 |
Business service revenues | 1,854 | 1,790 |
Non-service & other revenues1 | 93 | 91 |
Total Business revenues | 1,947 | 1,880 |
| \u00a0 | \u00a0 | \u00a0 |
Mobile service revenues | 173 | 156 |
Broadband service revenues | 318 | 316 |
Other service revenues4 | 184 | 180 |
Wholesale service revenues | 676 | 653 |
Non-service revenues | 5 | 3 |
Total Wholesale revenues | 680 | 656 |
| \u00a0 | \u00a0 | \u00a0 |
NOI | 50 | 30 |
Other (incl. eliminations)5 | 46 | 2 |
Total | 5,797 | 5,603 |
The core principle is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which KPN expects to be entitled in exchange for those goods or services. Revenue is recognized when it is probable that the economic benefits associated with a transaction will flow to KPN and the amount of revenue and associated costs can be measured reliably.
KPN follows IFRS 15's five-step process to recognize revenue. After a contract with a customer has been entered into, the separate performance obligations are identified, which are the distinct goods and services promised to the customer (the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer, and the transfer of goods or services to the customer is separately identifiable from other promises in the contract). Next, the transaction price is determined and allocated to the separate performance obligations, based on relative standalone selling prices (based on our price lists if the goods or services are sold separately). The final step is to recognize revenue when a performance obligation is satisfied. Revenue is recognized either at a point in time or over time. In general, telecoms and IT services are delivered over time, whereas handsets and peripheral and network equipment, if considered as separate performance obligations, are delivered at a point in time.
Revenue for variable considerations, including revenue under dispute, is recognized only when the revenue is considered highly probable, which in some cases requires significant judgment. An adjustment for the time value of money is made to a transaction price for the effects of financing if the time between recognition of revenue and cash receipt is expected to exceed 12 months and this provides the customer or KPN with a significant benefit.
For services or goods delivered by subcontractors, KPN determines whether its performance obligation is to provide the specified goods or services itself (KPN acts as a principal) or to arrange for another party to provide those goods or services (KPN acts as an agent), based on the agreed terms and conditions with the customer and the sub-contractor as well as the nature of the goods and services promised to the customer. When KPN acts as an agent, the revenue recognized is not the gross amount but the net amount that KPN is entitled to retain for its services as the agent.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Contract assets | 88 | 67 | 79 | 27 |
Costs to obtain a contract | 28 | 38 | 31 | 65 |
Costs to fulfill a contract | 1 | - | 1 | - |
Total | 118 | 105 | 111 | 91 |
In 2025, discounts/fees paid in relation to wholesale contracts were reclassified from costs to obtain a contract to contract assets.
A contract asset is recognized if the earned consideration is conditional. Upon invoicing of contract assets, the invoiced amounts are recognized as trade receivables.
Contract assets include:
Installation services and hardware delivered at the start of the contract if the amount of revenue recognized is higher than the amounts charged upfront;
Deferred discounts invoiced to customers if the discount is only granted in the first period of the service contract and the discount is recognized on a straight-line basis over the contract term;
The consideration to be received regarding those additional scope projects sold to Glaspoort in December 2021 of which the rollout activities have started, at which point other income is recognized. KPN has received 35% of the total consideration in cash upon closing the transaction and the remaining amount is to be received based on rollout progress (see Note 12 for the sale to Glaspoort of additional scope projects);
Transition projects for business customers when the revenue recognized is higher than the amounts invoiced for the transition phase.
The costs to be capitalized as costs to obtain or fulfill a contract are the costs that relate directly to a contract, provided it is probable that these costs will be recovered. Contract costs include:
Transaction-related dealer fees paid to acquire or retain mobile subscribers.
Transaction-related fees for door-to-door sales of subscriptions fixed network.
Costs incurred during the transition phase of projects for business customers to be able to deliver recurring services that are not treated as a separate performance obligation. These costs are capitalized as costs to fulfill a contract and expensed, in principle, on a straight-line basis over the remaining contract term in which such recurring services are delivered.
In 2025, the amortization of the contract costs amounted to \u20ac64m (2024: \u20ac54m).
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Contract liabilities | 178 | 151 | 164 | 130 |
Of which variable considerations | - | 103 | - | 100 |
The contract liabilities primarily relate to the consideration received from customers before satisfying performance obligations, such as advances for subscriptions and airtime. KPN recognizes a contract liability for postpaid and prepaid bundled minutes and data increasingly based on the passage of time of these bundles per proposition. The utilization percentage is the actual pro-rata period as a percentage of total credits granted for that period.
A contract liability is also recognized for:
Mobile connection fees charged to the customer if the connection is not treated as a separate performance obligation;
Fees invoiced for transition projects for business customers if the project is not treated as a separate performance obligation. If the transition project is treated as a separate performance obligation, a contract liability is recognized if the amount invoiced is higher than the amount of revenue allocated to the project.
Contract liabilities are recognized for variable considerations which are not deemed highly probable. The introduction of new mobile consumer propositions in August 2016 caused a change in the VAT calculation methodology, which resulted in a lower remittance of VAT from August 2016 until December 2018. KPN\u2019s view is not shared by the Dutch tax authorities. KPN has concluded, based on the applicable regulations, that a positive outcome of this dispute is not highly probable and has therefore recorded a contract liability for the VAT amount. Additionally, an amount for the corresponding interest amount has been accounted for. A potential final negative outcome of the current court proceedings will lead to cash outflow for an amount up to the non-current variable considerations (\u20ac103m), which includes accrued interest.
The year\u2019s revenues include the current portion of the contract liability balance at the beginning of the year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7139": { "value": "\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Service revenues | 5,357 | 5,215 |
Non-service revenues | 339 | 356 |
Revenues from contracts with customers | 5,696 | 5,571 |
Rentals and other revenues | 101 | 32 |
Revenues | 5,797 | 5,603 |
Service revenues are all revenues recognized over time and include fees for usage of KPN\u2019s network and facilities, e.g. monthly subscription fees and revenues from customer-specific IT solutions.
Non-service revenues are revenues recognized at a specific point in time and include, for example, sales of handsets and peripheral equipment as well as software licenses sold separately without significant installation or integration with other services.
Rentals and other revenues include royalties related to intellectual property rights (IPR) and site-sharing revenues. The revenue increase in 2025 mainly relates to the settlement of two IPR claims with telecoms vendors in 2025, and to the increase of site-sharing revenues due to the acquisition of Althio.
The application of KPN\u2019s accounting policies on revenue recognition, including relevant judgements, and information about KPN\u2019s performance obligations are summarized below:
Network access is considered a separate performance obligation. Revenue is recognized over time during the subscription period. Content, e.g. TV channels and streaming services, is generally bundled with network access and revenue is recognized on a gross basis.
Revenues for streaming services which are contracted with customers additionally are recognized on a net basis when KPN acts as an agent.
One-off connection fees are not considerations for separate performance obligations as they are considered to be necessary to get network access. The fees charged to customers are recognized as a contract liability and bundled with the performance obligation for network access.
Transaction-related dealer fees paid to acquire or retain subscribers are capitalized as contract costs and expensed on a straight-line basis over the contract term of the underlying customer contract.
Installation services offered to consumers are generally considered a separate performance obligation, as these services have standalone value for the customers. Installation services that are treated as a separate performance obligation include installation of customer premises equipment (CPE), e.g. set-top boxes, setting up in-home WiFi, and installation of customers\u2019 own devices. Revenue from installation services is recognized as revenue at a point in time (at completion of the installation).
A contract asset is recognized if the amount of revenue recognized is higher than the amount charged to the customer and the right to payment of the consideration by the customer is conditional. CPE that is considered part of KPN\u2019s network is capitalized as part of property, plant and equipment as KPN retains ownership and control over the economic benefits, and is not considered a separate performance obligation nor an identified asset in terms of IFRS 16: Leases.
Transition and transformation projects for implementing new services to large business customers (for example workspace management services) are considered separate performance obligations if the customer can benefit from the project deliverables on their own and the project deliverables are separately identifiable from other goods or services promised in the contract. An example is the set-up of a new ICT environment with improved functionality for the customer that is separable from the recurring ICT services (no significant integration with KPN systems and transferable to another service provider). If the project deliverables are not sold standalone, the transaction price is allocated to both the project deliverables and the recurring services on the basis of costs plus the overall contract margin. This allocation method results in a contract asset (or liability) if the revenue allocated to the project is higher (or lower) than the one-off project fee invoiced to and paid by the customer. Project revenue is recognized over time during the project phase, using the percentage of completion method. After completion of the project, the contract asset or liability is amortized over the remaining minimum contract period of the recurring services, in principle on a linear basis.
The project is not considered a separate performance obligation if it has no independent value for the customer and is not separable from the recurring services.
Sale of peripheral equipment and/or software licenses with significant installation services or integration with other services delivered by KPN, is not considered a separate performance obligation and is recognized as service revenue in the project phase.
Revenue for licenses combined with ongoing support and/or integrated with recurring workspace services is recognized over time.
The Wholesale segment bills customers at (regulated) rates that may be disputed by other operators and regulators. KPN only recognizes revenue to the extent that it is highly probable that a subsequent significant reversal will not occur. A liability is recognized if the invoiced revenue is not considered highly probable.
New subscriptions for telecoms services may be bundled with the sale and delivery of peripheral equipment. The peripheral equipment is considered a separate performance obligation and is recognized as revenue at a point in time (upon delivery of the equipment). The total transaction price of the bundled contract is allocated to the peripheral equipment and the subscription, based on their relative standalone selling prices. A contract asset is recognized if the amount of revenue allocated to the peripheral equipment is higher than the amount charged to customers upfront if the payment to be received for the peripheral equipment is conditional on the delivery of telecoms services, whereas a financial receivable is recognized if the payment to be received is unconditional.
The handsets sold and delivered by third parties, related to KPN subscription contracts, do not qualify as performance obligations for KPN. Handset-related dealer fees result in an unbilled receivable in the statement of financial position, which is decreased when handset installments are billed to end-customers.
In 2024 and 2025, the financing component was not significant and therefore not recorded.
Generally, the payment term is between 5 days and 30 days.
In 2025, no revenue was recognized from variable considerations related to performance obligations satisfied (or partially satisfied) in previous years (2024: \u20ac1m).
KPN applies the practical expedients provided in IFRS 15 under which disclosure of amounts of consideration allocated to the remaining performance obligations (unsatisfied or partially satisfied) do not need to be disclosed. This applies to contracts with an original expected duration of less than one year or when KPN bills a fixed amount for network services provided. KPN recognizes revenue from network services in the amount to which KPN has a right to invoice customers and this amount corresponds directly with the value of KPN\u2019s performance completed to date.
Some non-material restatements of the disaggregation of the revenues 2024 per segment have taken place for reasons of transparency and clarity. Within B2B, SME service revenues now include the mid-market segment consisting of companies with 150 to 650 FTEs, which was previously accounted for in divisions LCE and Tailored Solutions. \u20ac13m service revenues LCE and \u20ac7m service revenues Tailored Solutions have been restated to service revenues SME in 2024.
\u20ac\u00a0million | 2025 | 2024 (restated) |
|---|---|---|
Fixed-mobile service revenues | 1,759 | 1,675 |
Fixed-only service revenues | 700 | 731 |
Postpaid-only service revenues | 305 | 293 |
Legacy/other service revenues | 53 | 62 |
Consumer service revenues | 2,817 | 2,761 |
Non-service revenues1 | 256 | 274 |
Total Consumer revenues | 3,072 | 3,035 |
| \u00a0 | \u00a0 | \u00a0 |
Access & connectivity2 | 657 | 636 |
IT services3 | 110 | 92 |
SME service revenues | 767 | 729 |
Access & connectivity2 | 524 | 512 |
IT services & other3 | 237 | 243 |
LCE service revenues | 761 | 755 |
Tailored Solutions service revenues | 327 | 306 |
Business service revenues | 1,854 | 1,790 |
Non-service & other revenues1 | 93 | 91 |
Total Business revenues | 1,947 | 1,880 |
| \u00a0 | \u00a0 | \u00a0 |
Mobile service revenues | 173 | 156 |
Broadband service revenues | 318 | 316 |
Other service revenues4 | 184 | 180 |
Wholesale service revenues | 676 | 653 |
Non-service revenues | 5 | 3 |
Total Wholesale revenues | 680 | 656 |
| \u00a0 | \u00a0 | \u00a0 |
NOI | 50 | 30 |
Other (incl. eliminations)5 | 46 | 2 |
Total | 5,797 | 5,603 |
The core principle is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which KPN expects to be entitled in exchange for those goods or services. Revenue is recognized when it is probable that the economic benefits associated with a transaction will flow to KPN and the amount of revenue and associated costs can be measured reliably.
KPN follows IFRS 15's five-step process to recognize revenue. After a contract with a customer has been entered into, the separate performance obligations are identified, which are the distinct goods and services promised to the customer (the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer, and the transfer of goods or services to the customer is separately identifiable from other promises in the contract). Next, the transaction price is determined and allocated to the separate performance obligations, based on relative standalone selling prices (based on our price lists if the goods or services are sold separately). The final step is to recognize revenue when a performance obligation is satisfied. Revenue is recognized either at a point in time or over time. In general, telecoms and IT services are delivered over time, whereas handsets and peripheral and network equipment, if considered as separate performance obligations, are delivered at a point in time.
Revenue for variable considerations, including revenue under dispute, is recognized only when the revenue is considered highly probable, which in some cases requires significant judgment. An adjustment for the time value of money is made to a transaction price for the effects of financing if the time between recognition of revenue and cash receipt is expected to exceed 12 months and this provides the customer or KPN with a significant benefit.
For services or goods delivered by subcontractors, KPN determines whether its performance obligation is to provide the specified goods or services itself (KPN acts as a principal) or to arrange for another party to provide those goods or services (KPN acts as an agent), based on the agreed terms and conditions with the customer and the sub-contractor as well as the nature of the goods and services promised to the customer. When KPN acts as an agent, the revenue recognized is not the gross amount but the net amount that KPN is entitled to retain for its services as the agent.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Contract assets | 88 | 67 | 79 | 27 |
Costs to obtain a contract | 28 | 38 | 31 | 65 |
Costs to fulfill a contract | 1 | - | 1 | - |
Total | 118 | 105 | 111 | 91 |
In 2025, discounts/fees paid in relation to wholesale contracts were reclassified from costs to obtain a contract to contract assets.
A contract asset is recognized if the earned consideration is conditional. Upon invoicing of contract assets, the invoiced amounts are recognized as trade receivables.
Contract assets include:
Installation services and hardware delivered at the start of the contract if the amount of revenue recognized is higher than the amounts charged upfront;
Deferred discounts invoiced to customers if the discount is only granted in the first period of the service contract and the discount is recognized on a straight-line basis over the contract term;
The consideration to be received regarding those additional scope projects sold to Glaspoort in December 2021 of which the rollout activities have started, at which point other income is recognized. KPN has received 35% of the total consideration in cash upon closing the transaction and the remaining amount is to be received based on rollout progress (see Note 12 for the sale to Glaspoort of additional scope projects);
Transition projects for business customers when the revenue recognized is higher than the amounts invoiced for the transition phase.
The costs to be capitalized as costs to obtain or fulfill a contract are the costs that relate directly to a contract, provided it is probable that these costs will be recovered. Contract costs include:
Transaction-related dealer fees paid to acquire or retain mobile subscribers.
Transaction-related fees for door-to-door sales of subscriptions fixed network.
Costs incurred during the transition phase of projects for business customers to be able to deliver recurring services that are not treated as a separate performance obligation. These costs are capitalized as costs to fulfill a contract and expensed, in principle, on a straight-line basis over the remaining contract term in which such recurring services are delivered.
In 2025, the amortization of the contract costs amounted to \u20ac64m (2024: \u20ac54m).
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Contract liabilities | 178 | 151 | 164 | 130 |
Of which variable considerations | - | 103 | - | 100 |
The contract liabilities primarily relate to the consideration received from customers before satisfying performance obligations, such as advances for subscriptions and airtime. KPN recognizes a contract liability for postpaid and prepaid bundled minutes and data increasingly based on the passage of time of these bundles per proposition. The utilization percentage is the actual pro-rata period as a percentage of total credits granted for that period.
A contract liability is also recognized for:
Mobile connection fees charged to the customer if the connection is not treated as a separate performance obligation;
Fees invoiced for transition projects for business customers if the project is not treated as a separate performance obligation. If the transition project is treated as a separate performance obligation, a contract liability is recognized if the amount invoiced is higher than the amount of revenue allocated to the project.
Contract liabilities are recognized for variable considerations which are not deemed highly probable. The introduction of new mobile consumer propositions in August 2016 caused a change in the VAT calculation methodology, which resulted in a lower remittance of VAT from August 2016 until December 2018. KPN\u2019s view is not shared by the Dutch tax authorities. KPN has concluded, based on the applicable regulations, that a positive outcome of this dispute is not highly probable and has therefore recorded a contract liability for the VAT amount. Additionally, an amount for the corresponding interest amount has been accounted for. A potential final negative outcome of the current court proceedings will lead to cash outflow for an amount up to the non-current variable considerations (\u20ac103m), which includes accrued interest.
The year\u2019s revenues include the current portion of the contract liability balance at the beginning of the year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i7104": { "value": "The application of KPN\u2019s accounting policies on revenue recognition, including relevant judgements, and information about KPN\u2019s performance obligations are summarized below:
Network access is considered a separate performance obligation. Revenue is recognized over time during the subscription period. Content, e.g. TV channels and streaming services, is generally bundled with network access and revenue is recognized on a gross basis.
Revenues for streaming services which are contracted with customers additionally are recognized on a net basis when KPN acts as an agent.
One-off connection fees are not considerations for separate performance obligations as they are considered to be necessary to get network access. The fees charged to customers are recognized as a contract liability and bundled with the performance obligation for network access.
Transaction-related dealer fees paid to acquire or retain subscribers are capitalized as contract costs and expensed on a straight-line basis over the contract term of the underlying customer contract.
Installation services offered to consumers are generally considered a separate performance obligation, as these services have standalone value for the customers. Installation services that are treated as a separate performance obligation include installation of customer premises equipment (CPE), e.g. set-top boxes, setting up in-home WiFi, and installation of customers\u2019 own devices. Revenue from installation services is recognized as revenue at a point in time (at completion of the installation).
A contract asset is recognized if the amount of revenue recognized is higher than the amount charged to the customer and the right to payment of the consideration by the customer is conditional. CPE that is considered part of KPN\u2019s network is capitalized as part of property, plant and equipment as KPN retains ownership and control over the economic benefits, and is not considered a separate performance obligation nor an identified asset in terms of IFRS 16: Leases.
Transition and transformation projects for implementing new services to large business customers (for example workspace management services) are considered separate performance obligations if the customer can benefit from the project deliverables on their own and the project deliverables are separately identifiable from other goods or services promised in the contract. An example is the set-up of a new ICT environment with improved functionality for the customer that is separable from the recurring ICT services (no significant integration with KPN systems and transferable to another service provider). If the project deliverables are not sold standalone, the transaction price is allocated to both the project deliverables and the recurring services on the basis of costs plus the overall contract margin. This allocation method results in a contract asset (or liability) if the revenue allocated to the project is higher (or lower) than the one-off project fee invoiced to and paid by the customer. Project revenue is recognized over time during the project phase, using the percentage of completion method. After completion of the project, the contract asset or liability is amortized over the remaining minimum contract period of the recurring services, in principle on a linear basis.
The project is not considered a separate performance obligation if it has no independent value for the customer and is not separable from the recurring services.
Sale of peripheral equipment and/or software licenses with significant installation services or integration with other services delivered by KPN, is not considered a separate performance obligation and is recognized as service revenue in the project phase.
Revenue for licenses combined with ongoing support and/or integrated with recurring workspace services is recognized over time.
The Wholesale segment bills customers at (regulated) rates that may be disputed by other operators and regulators. KPN only recognizes revenue to the extent that it is highly probable that a subsequent significant reversal will not occur. A liability is recognized if the invoiced revenue is not considered highly probable.
New subscriptions for telecoms services may be bundled with the sale and delivery of peripheral equipment. The peripheral equipment is considered a separate performance obligation and is recognized as revenue at a point in time (upon delivery of the equipment). The total transaction price of the bundled contract is allocated to the peripheral equipment and the subscription, based on their relative standalone selling prices. A contract asset is recognized if the amount of revenue allocated to the peripheral equipment is higher than the amount charged to customers upfront if the payment to be received for the peripheral equipment is conditional on the delivery of telecoms services, whereas a financial receivable is recognized if the payment to be received is unconditional.
The handsets sold and delivered by third parties, related to KPN subscription contracts, do not qualify as performance obligations for KPN. Handset-related dealer fees result in an unbilled receivable in the statement of financial position, which is decreased when handset installments are billed to end-customers.
KPN applies the practical expedients provided in IFRS 15 under which disclosure of amounts of consideration allocated to the remaining performance obligations (unsatisfied or partially satisfied) do not need to be disclosed. This applies to contracts with an original expected duration of less than one year or when KPN bills a fixed amount for network services provided. KPN recognizes revenue from network services in the amount to which KPN has a right to invoice customers and this amount corresponds directly with the value of KPN\u2019s performance completed to date.
The core principle is that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which KPN expects to be entitled in exchange for those goods or services. Revenue is recognized when it is probable that the economic benefits associated with a transaction will flow to KPN and the amount of revenue and associated costs can be measured reliably.
KPN follows IFRS 15's five-step process to recognize revenue. After a contract with a customer has been entered into, the separate performance obligations are identified, which are the distinct goods and services promised to the customer (the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer, and the transfer of goods or services to the customer is separately identifiable from other promises in the contract). Next, the transaction price is determined and allocated to the separate performance obligations, based on relative standalone selling prices (based on our price lists if the goods or services are sold separately). The final step is to recognize revenue when a performance obligation is satisfied. Revenue is recognized either at a point in time or over time. In general, telecoms and IT services are delivered over time, whereas handsets and peripheral and network equipment, if considered as separate performance obligations, are delivered at a point in time.
Revenue for variable considerations, including revenue under dispute, is recognized only when the revenue is considered highly probable, which in some cases requires significant judgment. An adjustment for the time value of money is made to a transaction price for the effects of financing if the time between recognition of revenue and cash receipt is expected to exceed 12 months and this provides the customer or KPN with a significant benefit.
For services or goods delivered by subcontractors, KPN determines whether its performance obligation is to provide the specified goods or services itself (KPN acts as a principal) or to arrange for another party to provide those goods or services (KPN acts as an agent), based on the agreed terms and conditions with the customer and the sub-contractor as well as the nature of the goods and services promised to the customer. When KPN acts as an agent, the revenue recognized is not the gross amount but the net amount that KPN is entitled to retain for its services as the agent.
KPN applies the practical expedients provided in IFRS 15 under which disclosure of amounts of consideration allocated to the remaining performance obligations (unsatisfied or partially satisfied) do not need to be disclosed. This applies to contracts with an original expected duration of less than one year or when KPN bills a fixed amount for network services provided. KPN recognizes revenue from network services in the amount to which KPN has a right to invoice customers and this amount corresponds directly with the value of KPN\u2019s performance completed to date.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Contract liabilities | 178 | 151 | 164 | 130 |
Of which variable considerations | - | 103 | - | 100 |
The contract liabilities primarily relate to the consideration received from customers before satisfying performance obligations, such as advances for subscriptions and airtime. KPN recognizes a contract liability for postpaid and prepaid bundled minutes and data increasingly based on the passage of time of these bundles per proposition. The utilization percentage is the actual pro-rata period as a percentage of total credits granted for that period.
A contract liability is also recognized for:
Mobile connection fees charged to the customer if the connection is not treated as a separate performance obligation;
Fees invoiced for transition projects for business customers if the project is not treated as a separate performance obligation. If the transition project is treated as a separate performance obligation, a contract liability is recognized if the amount invoiced is higher than the amount of revenue allocated to the project.
Contract liabilities are recognized for variable considerations which are not deemed highly probable. The introduction of new mobile consumer propositions in August 2016 caused a change in the VAT calculation methodology, which resulted in a lower remittance of VAT from August 2016 until December 2018. KPN\u2019s view is not shared by the Dutch tax authorities. KPN has concluded, based on the applicable regulations, that a positive outcome of this dispute is not highly probable and has therefore recorded a contract liability for the VAT amount. Additionally, an amount for the corresponding interest amount has been accounted for. A potential final negative outcome of the current court proceedings will lead to cash outflow for an amount up to the non-current variable considerations (\u20ac103m), which includes accrued interest.
The year\u2019s revenues include the current portion of the contract liability balance at the beginning of the year.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7302": { "value": "\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Other income | 32 | 31 |
Other income mainly relates to \u20ac31m book gains (2024: \u20ac30m) realized on the sale of various tangible and intangible (legacy) assets.
Other income includes net gains on the sale of tangible or intangible assets, net gains on the sale of subsidiaries, and other gains not related to KPN\u2019s ordinary operating activities.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Other income | 32 | 31 |
Other income mainly relates to \u20ac31m book gains (2024: \u20ac30m) realized on the sale of various tangible and intangible (legacy) assets.
Other income includes net gains on the sale of tangible or intangible assets, net gains on the sale of subsidiaries, and other gains not related to KPN\u2019s ordinary operating activities.
Operating expenses are divided into:
Direct costs: costs of goods & services;
Indirect costs: information technology / technical infrastructure (IT/TI), personnel expenses, other operating expenses and depreciation, amortization & impairments (DA&I).
See Note 5 for the disclosure of personnel expenses and Notes 10, 11 and 19 for DA&I.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Cost of goods sold | 389 | 397 |
Cost of services | 804 | 754 |
Subscriber acquisition & retention costs | 158 | 146 |
Traffic expenses | 155 | 131 |
Cost of goods & services | 1,506 | 1,428 |
Cost of services in 2025 includes costs related to the settlement of two IPR claims with telecom vendors (\u20ac19m).
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Marketing & communication | 120 | 122 |
Billing & collection | 5 | 25 |
Housing & facilities | 143 | 155 |
Other fixed costs | 88 | 82 |
Addition to restructuring provision | 37 | 28 |
Other operating expenses | 392 | 412 |
The fees recognized as expenses in the 2025 financial year relate to the services provided to KPN and its consolidated group entities by PricewaterhouseCoopers Accountants N.V. and other members of the PwC network.
The fees recognized as expenses in the 2024 financial year relate to the services provided to KPN and its consolidated group entities by EY Accountants B.V., as well as by other Dutch and foreign-based EY individual partnerships and legal entities.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | PwC Netherlands | Other PwC network | EY Netherlands | Other EY network |
Financial statements audit fees | 4.2 | - | 4.3 | - |
Audit of annual statutory financial statements of subsidiaries\u200b\u200b | 0.3 | 0.1 | - | 0.1 |
Other assurance fees | 1.2 | - | 1.6 | - |
Tax advisory services | - | - | - | - |
Other non-audit services | - | - | - | - |
Total auditor's fees | 5.7 | 0.2 | 5.9 | 0.1 |
The auditor's fees include the fees for professional services rendered for the audit of KPN\u2019s annual financial statements and the fees for the audit of annual statutory financial statements of subsidiaries or for services that are normally provided by the auditor in connection with the audits. The audit fees are the total fees for the examination of the financial statements for the reporting period to which the financial statements relate, irrespective of whether the work of the auditor was performed during that reporting period.
Other assurance fees include the fees for the assurance on KPN's sustainability statement and the fees incurred for assurance and related services that are reasonably related to the performance of the audit or review of KPN\u2019s financial statements, such as revenue and IT-related assurance services and regulatory-related assurance services.
Costs of goods and services are costs incurred in the context of a sales transaction and include subscriber acquisition and retention costs and traffic expenses. These costs are expensed as incurred, except handset fees paid to dealers and transaction-related dealer commissions that are capitalized and amortized over the contract term. The cost of a handset is expensed when the handset is sold (as incurred), both as an individual sale or as a component of a transaction in combination with a subscription.
Information technology (IT) expenses relate to KPN\u2019s IT environment and include licenses and maintenance expenses for software and/or IT hardware when not directly related to a sales transaction. Technical infrastructure (TI) expenses are expenses related to KPN\u2019s fixed and mobile networks. Personnel expenses are all expenses related to KPN\u2019s workforce, both related to own employees and external personnel from employment agencies.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Salaries and wages | 827 | 791 |
Retirement benefits | 94 | 87 |
Social security contributions | 112 | 109 |
Share-based payments1 | 13 | 11 |
Additional labor capacity | 32 | 33 |
Own work capitalized | -242 | -226 |
Other (including e.g. training, travel) | 40 | 44 |
Total personnel expenses | 876 | 849 |
Employee termination benefits of \u20ac37m (2024: \u20ac28m) are not included in personnel expenses but in other operating expenses (see Note 6, as part of restructuring personnel).
Number of own personnel (FTEs) per segment1 | 31 December 2025 | 31 December 2024 |
|---|---|---|
Consumer | 2,693 | 2,931 |
Business | 2,740 | 2,811 |
Wholesale | 202 | 210 |
NOI | 2,628 | 2,772 |
Other | 873 | 939 |
Total FTEs | 9,1362 | 9,6643 |
> Of which discontinued operations | 0 | 0 |
KPN has granted conditional share awards (equity-settled) to the members of the Board of Management, and conditional share-based awards (cash-settled) based on KPN shares to members of senior management. Vesting of these shares and awards is subject to performance conditions over a three-year vesting period. Further information on the conditions of the conditional share awards for members of the Board of Management can be found under \"Long-term incentives\" in the \"Remuneration report\".
The targets for the LTI plan are set as follows:
70% financial targets, of which 45% (20% as of the 2024 plan) on cumulative free cash flow over the plan period, 25% (30% as of the 2024 plan) on relative total shareholder return (TSR) measured against the STOXX Europe 600 Telecommunications index, and 20% (as of the 2024 plan) on return on capital employed;
30% non-financial targets, determined at the start of a new plan from the following categories: (i) sustainability; (ii) reputation; (iii) social; (iv) key business projects; and (v) market share.
The main features of the awards granted to KPN management are summarized in the following table.
| \u00a0 | Board of Management | Senior management | Settlement type1 | Vesting period | Holding period after vesting of/until | Maximum term |
|---|---|---|---|---|---|---|
2021 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2022 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2023 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2024 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2025 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
The related liability (for cash-settled shares) on 31 December 2025 was \u20ac10m (31 December 2024: \u20ac9m). This liability is included in other payables. For the 2022 equity share plan and share-based awards, the service conditions were met in 2025. The total intrinsic value at vesting was \u20ac10m (2024: \u20ac15m).
The following table presents the number of shares and share-based awards in thousands under the share plans.
| \u00a0 | Total | Granted/ additional vesting1 | Exercised/ vested | Forfeited | Total | Granted/ additional vesting2 | Exercised/ vested3 | Forfeited | Total | -of which: |
|---|---|---|---|---|---|---|---|---|---|---|
2021 Share-based awards sr. man. | 1,695 | 848 | -2,543 | - | - | - | - | - | - | - |
2021 Shares BoM | 1,357 | 679 | -2,036 | - | - | - | - | - | - | - |
2022 Share-based awards sr. man. | 1,633 | - | - | - | 1,633 | 91 | -1,724 | - | - | - |
2022 Shares BoM | 1,002 | - | - | - | 1,002 | 56 | -1,058 | - | - | - |
2023 Share-based awards sr. man. | 1,790 | 58 | - | - | 1,848 | - | - | - | 1,848 | 1,848 |
2023 Shares BoM | 1,187 | - | - | - | 1,187 | - | - | - | 1,187 | 1,187 |
2024 Share-based awards sr. man. | - | 1,892 | - | - | 1,892 | 22 | - | - | 1,914 | 1,914 |
2024 Shares BoM | - | 1,243 | - | - | 1,243 | \u00a0 | - | - | 1,243 | 1,243 |
2025 Share-based awards sr. man. | - | - | - | - | - | 1,903 | - | - | 1,903 | 1,903 |
2025 Shares BoM | - | - | - | - | - | 1,167 | - | - | 1,167 | 1,167 |
The fair value of each award at the grant date is determined using the following assumptions:
Assumptions | 2025 LTI | 2024 LTI |
|---|---|---|
Risk-free interest rate based on euro government bonds for remaining time to maturity of 2.7 years | 1.8% | 3.0% |
Expected dividend for KPN (based on one year\u2019s historical daily data preceding the date of award) | 4.7% | 4.5% |
Expected volatility (PSP grant based on 2.7 years\u2019 historical daily data) used for TSR | 13.7% | 14.5% |
Share price at date of award (closing at grant date) | \u20ac4,05 | \u20ac3,38 |
See the \"Remuneration report\" for the executive pay policy and for the number of shares under the share plans per individual board member. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
See the \"Insider transactions\" section for stock ownership of members of the Board of Management and Supervisory Board.
See the \"Remuneration report\" for the actual fees received by each member of the Supervisory Board. The following table presents key management remuneration in euros.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Short-term employee benefits Board of Management (BoM) | 7,134,601 | 6,407,346 |
Post-employment benefits BoM | 836,060 | 820,182 |
Share-based payments BoM | 3,902,263 | 3,442,539 |
Total remuneration BoM | 11,872,924 | 10,670,066 |
Supervisory Board | 743,847 | 725,347 |
Total remuneration key management | 12,616,771 | 11,395,413 |
No loans, advance payments, or guarantees were provided to members of the Board of Management or the Supervisory Board.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
Operating expenses are divided into:
Direct costs: costs of goods & services;
Indirect costs: information technology / technical infrastructure (IT/TI), personnel expenses, other operating expenses and depreciation, amortization & impairments (DA&I).
See Note 5 for the disclosure of personnel expenses and Notes 10, 11 and 19 for DA&I.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Cost of goods sold | 389 | 397 |
Cost of services | 804 | 754 |
Subscriber acquisition & retention costs | 158 | 146 |
Traffic expenses | 155 | 131 |
Cost of goods & services | 1,506 | 1,428 |
Cost of services in 2025 includes costs related to the settlement of two IPR claims with telecom vendors (\u20ac19m).
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Marketing & communication | 120 | 122 |
Billing & collection | 5 | 25 |
Housing & facilities | 143 | 155 |
Other fixed costs | 88 | 82 |
Addition to restructuring provision | 37 | 28 |
Other operating expenses | 392 | 412 |
The fees recognized as expenses in the 2025 financial year relate to the services provided to KPN and its consolidated group entities by PricewaterhouseCoopers Accountants N.V. and other members of the PwC network.
The fees recognized as expenses in the 2024 financial year relate to the services provided to KPN and its consolidated group entities by EY Accountants B.V., as well as by other Dutch and foreign-based EY individual partnerships and legal entities.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | PwC Netherlands | Other PwC network | EY Netherlands | Other EY network |
Financial statements audit fees | 4.2 | - | 4.3 | - |
Audit of annual statutory financial statements of subsidiaries\u200b\u200b | 0.3 | 0.1 | - | 0.1 |
Other assurance fees | 1.2 | - | 1.6 | - |
Tax advisory services | - | - | - | - |
Other non-audit services | - | - | - | - |
Total auditor's fees | 5.7 | 0.2 | 5.9 | 0.1 |
The auditor's fees include the fees for professional services rendered for the audit of KPN\u2019s annual financial statements and the fees for the audit of annual statutory financial statements of subsidiaries or for services that are normally provided by the auditor in connection with the audits. The audit fees are the total fees for the examination of the financial statements for the reporting period to which the financial statements relate, irrespective of whether the work of the auditor was performed during that reporting period.
Other assurance fees include the fees for the assurance on KPN's sustainability statement and the fees incurred for assurance and related services that are reasonably related to the performance of the audit or review of KPN\u2019s financial statements, such as revenue and IT-related assurance services and regulatory-related assurance services.
Costs of goods and services are costs incurred in the context of a sales transaction and include subscriber acquisition and retention costs and traffic expenses. These costs are expensed as incurred, except handset fees paid to dealers and transaction-related dealer commissions that are capitalized and amortized over the contract term. The cost of a handset is expensed when the handset is sold (as incurred), both as an individual sale or as a component of a transaction in combination with a subscription.
Information technology (IT) expenses relate to KPN\u2019s IT environment and include licenses and maintenance expenses for software and/or IT hardware when not directly related to a sales transaction. Technical infrastructure (TI) expenses are expenses related to KPN\u2019s fixed and mobile networks. Personnel expenses are all expenses related to KPN\u2019s workforce, both related to own employees and external personnel from employment agencies.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Total net financial results improved by \u20ac5m to a net cost of \u20ac287m.
Finance income decreased by \u20ac27m to \u20ac14m compared with 2024, mainly due to lower average cash balances and lower yields on cash.
Finance costs decreased by \u20ac12m to \u20ac267m, which was mainly related to lower interest on borrowings of \u20ac230m (2024: \u20ac245m) including a non-cash amount of \u20ac6m (2024: \u20ac5m) relating to debt issuance costs including premiums and/or discounts, which are amortized over the life of the respective bonds using the effective interest rate method. Other interest expenses increased by \u20ac\u00a08m mainly due to interest cost on Althio's term loan.
Other financial results improved by \u20ac21m to a net cost of \u20ac34m (2024: \u20ac55m net cost) which is mainly the result of \u20ac14m charges related to the termination of hedge accounting on unwound swaps compared to \u20ac60m charges in 2024 related to a bond tender and \u20ac10m loss due to exchange rate differences compared to a gain of \u20ac12m in 2024.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Current tax | -159 | -149 |
Deferred taxes | -58 | -89 |
Income tax (charge)/benefit from continuing operations | -217 | -238 |
The reconciliation from the Dutch statutory tax rate of 25.8% (2024: 25.8%) to the effective tax rate (ETR) of 20.0% (2024: 21.7%) is explained in the following table:
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
| \u00a0 | \u20ac\u00a0million | ETR | \u20ac\u00a0million | ETR |
Profit before income tax from continuing operations excluding | 1,082 | \u00a0 | 1,100 | \u00a0 |
Taxes at Dutch statutory tax rates | -279 | 25.8% | -284 | 25.8% |
Non-taxable income, non-deductible expenses | -4 | 0.4% | -4 | 0.4% |
Participation exemption on the sale of subsidiaries | -3 | 0.3% | - | 0.0% |
Innovation tax facilities current year | 32 | -3.0% | 31 | -2.8% |
Deferred tax related to current year | 241 | -2.2% | 3 | -0.3% |
Tax benefit perpetual hybrid bonds | 14 | -1.3% | 12 | -1.1% |
Other | -1 | 0.1% | 3 | -0.3% |
Income tax benefit/(charge) from continuing operations | -217 | 20.0% | -238 | 21.7% |
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Salaries and wages | 827 | 791 |
Retirement benefits | 94 | 87 |
Social security contributions | 112 | 109 |
Share-based payments1 | 13 | 11 |
Additional labor capacity | 32 | 33 |
Own work capitalized | -242 | -226 |
Other (including e.g. training, travel) | 40 | 44 |
Total personnel expenses | 876 | 849 |
Employee termination benefits of \u20ac37m (2024: \u20ac28m) are not included in personnel expenses but in other operating expenses (see Note 6, as part of restructuring personnel).
Retirement benefits are provided through a number of defined contribution plans and funded and unfunded defined benefit plans. The most significant plans are described below.
KPN\u2019s main pension plan covers employees in the Netherlands who are subject to KPN\u2019s collective labor agreement and employees with an individual labor agreement, and is externally funded through Stichting Pensioenfonds KPN. This plan is a collective defined contribution pension plan. It is accounted for as a defined contribution plan because KPN has no other obligation than to pay the annual contribution. This is a fixed percentage of the pensionable base for a period of three years. After this three-year period the annual contribution is reassessed based on a fixed and agreed method in which no reflection of past service or the funded status of the fund is included.
On 30 May 2023, the Dutch Senate adopted the new Dutch Pension Act to reform the Dutch pension system. This will impact every employer with a pension scheme in place. In practice, all pension arrangements with employees and contracts with pension providers will need to be renewed. The deadline for transition is 1 January 2028. The new pension scheme that is expected to be implemented on 1 October 2026 will continue to be accounted for as a defined contribution plan. The fixed percentage of the pensionable base which KPN has paid as a contribution since 1 January 2023 is extended until the new pension scheme has been implemented, after which a new fixed percentage will be paid.
The Getronics UK operations were divested in 2012. The closed and frozen pension plan of the former UK operations remained with KPN. The plan consists of a defined benefit section and a smaller defined contribution section with a guaranteed minimum pension (GMP) underpin. The assets in the plan are held separately from KPN in an independently administered fund. The UK plan operates under the regulations of the The Pensions Regulator. The plan is managed by independent trustees who have a fiduciary duty to act in the best interests of the plan members. Responsibilities for plan governance include setting investment strategy, monitoring fund performance, and ensuring compliance with relevant legislation. A funding agreement applies whereby KPN provides contributions to the plan on the basis set out in the triennial statutory actuarial valuation, for Pension Protection Fund levies and certain other costs in relation to the plan.
The deficit in the plan's funding must be recovered by the investment returns of the plan assets and contributions by KPN. It has been agreed with the trustees that the contributions for 2026 amount to \u00a34m and that from 1 January 2027 no contributions are payable other than the Pension Protection Fund levies.
The pension plan exposes KPN to a number of risks, which could have an impact on the future contributions by KPN and the liability recorded in its balance sheet. The most significant risks are summarized below:
Asset volatility risk: The pension plan\u2019s assets are partially invested in equity securities and other return-seeking assets, so the plan's funding levels are exposed to equity market risks. For example, geographic conflicts and interest rate fluctuations could cause significant volatility;
Interest rate risk: A fall in interest rates will increase the plan's liabilities, although this will be largely offset by an increase in the value of the plan's liability-driven investments;
Inflation risk: The indexation of part of the plan's accrued benefits is based on a combination of consumer and retail price indices, so the plan is exposed to inflation risk, although the indexation is capped and this risk is largely hedged with inflation-linked bonds;
Life expectancy risk: The plan provides benefits for the life of the participants, so increases in life expectancy will result in an increase in the plan's liabilities.
GMP is a portion of pension that was accrued by individuals who were contracted out of the additional state pension prior to 6 April 1997. At present there is an inequality of benefits between male and female members who have GMP. The UK High Court ruled in 2018 that equalization will be required for affected defined benefit pension schemes. In the course of 2025, the method for equalizing has been formally agreed with the trustees and this will be implemented in 2026. Since 2018, the benefit obligations have been increased by a fixed percentage to reflect the expected cost of GMP equalisation. The final cost to the UK plan for equalizing depends on a complex interaction between the benefit design and membership profile.
The Getronics US operations were divested in 2008. The closed and frozen pension plan of the former US operations remained with KPN and was accounted for as a defined benefit plan. The assets of the plan were held separately from KPN in independently administered funds. The plan operated under the provisions of the Employee Retirement Income Security Act (ERISA). In 2023, KPN started the process to terminate the plan and settle all of the plan's liabilities. In 2024, KPN acquired from the plan its investment in the Townsend Real Estate Fund at fair market value (\u20ac10m, see Note 13.1) and made a final contribution to the plan of \u20ac2m to fully fund the plan. The plan was terminated in 2025 and excess assets of \u20ac1m were transferred to KPN.
KPN has a number of other funded (insured) plans in the Netherlands which are all closed to new entrants. KPN is not entitled to any excess profits. In 2025, these plans were classified as defined contribution going forward, after a risk reassesment. KPN is not entitled to any excess profits nor obliged to make additional contributions other than those related to value transfers. The risk therefore does not fall in substance on the employer. Under Dutch law, KPN could be required to make contributions if participants of these plans require a value transfer to another pension fund or insurer.
In 2022, a new early retirement plan was implemented for a limited group of employees, for which an expense of \u20ac1m was recorded in 2025 and in 2024. This plan has been treated as a defined benefit.
The provisions for retirement benefit obligations consist of the net defined benefit liability regarding pension plans and early retirement plans, which are accounted for as defined benefit plans as described above. See the table below for a specification of the balance sheet position.
| \u00a0 | Defined benefit obligation1 | Fair value of assets | Net defined benefit liability (asset) | |||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Balance at 1 January | 280 | 386 | -263 | -353 | 17 | 33 |
Included in profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Operating expense2 | -27 | -92 | 29 | 96 | 2 | 4 |
Interest expense (income) | 14 | 16 | -13 | -14 | -1 | 2 |
Included in OCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Remeasurements loss (gain): | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Actuarial loss (gain)3 | - | -20 | - | - | - | -20 |
Return on plan assets excluding interest income | - | - | -2 | 16 | -2 | 16 |
Effect of movements in exchange rates | -12 | 14 | 12 | -12 | - | 2 |
Total | -12 | -6 | 10 | 4 | -2 | -2 |
Other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Employer\u2019s contribution | - | - | -10 | -20 | -10 | -20 |
Benefits paid | -17 | -24 | 17 | 24 | - | - |
Balance at 31 December | 238 | 280 | -230 | -263 | 7 | 17 |
The key actuarial assumptions used in the calculation of the defined benefit obligations are as follows:
| \u00a0 | 31 December 2025 | 31 December 2024 | |
|---|---|---|---|
| \u00a0 | Getronics UK | Getronics UK | Other |
Discount rate (%) | 5.4 | 5.5 | 3.4 |
Expected salary increases (%) | n/a | n/a | 2.0 |
Expected benefit increases/indexation (%) | 2.2-2.6 | 2.4-2.9 | 0.0 |
Life expectancy for pensioners at retirement age: | \u00a0 | \u00a0 | \u00a0 |
Men | 22.1 | 21.7 | 21.8 |
Women | 24.0 | 23.8 | 23.8 |
The discount rate is based on the yield of AA corporate bonds with maturities equal to the duration of the benefit obligations and in the applicable currency. At 31 December 2025, the duration of the defined benefit obligation was 10 years.
Assumptions regarding life expectancy are based on published statistics and mortality tables that include allowances for future improvement in mortality. The mortality tables used in the UK are the scaling factors of 97% for men and 102% for women of the SAPS S3PXA tables, which include the Continuous Mortality Investigation 2024 projection of a 1.0% long-term improvement. Life expectancy in the UK at the age of 65 is expected to increase in the next 20 years by between 1 and 2 years.
The following table shows the approximate impact on the defined benefit obligation of a change in the key actuarial assumptions of 0.5% and of a change in life expectancy of one year.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Increase | Decrease | Increase | Decrease |
Discount rate | -11 | 12 | -14 | 15 |
Expected salary increases | - | - | - | - |
Expected benefit increases | 7 | -7 | 7 | -7 |
Life expectancy | 8 | -8 | 11 | -11 |
This sensitivity analysis assumes changes in one variable while holding others constant, which may not reflect real-world interdependencies.
The assets of all defined benefit pension plans at 31 December 2025 and 2024 comprise:
| \u00a0 | 31 December 2025 | 31 December 2024 |
|---|---|---|
Quoted in active markets: | \u00a0 | \u00a0 |
Equity securities | 22% | 17% |
Fixed-income securities | 53% | 50% |
Real estate | 1% | 2% |
Other | 2% | 0% |
Not quoted in active markets: | \u00a0 | \u00a0 |
Fixed-income securities | 14% | 13% |
Other | 8% | 18% |
The strategic asset allocations of the defined benefit plans at year-end 2025 were as follows:
\u20ac\u00a0million | Getronics UK |
|---|---|
Equity securities | 20% |
Fixed-income securities (including inflation-linked bonds) | 60% |
Other | 20% |
Total | 100% |
The Getronics UK pension fund maintains liability hedge ratios on a technical provision basis of 100% of assets for both interest rate and inflation exposure, resulting in higher hedge ratios as its funded status improves. As the UK pension fund invests in global investment funds, a minimal part of these investments could be related to KPN equities. The pension funds do not have direct investments in KPN equities.
In 2025, the total employer\u2019s contributions and benefit payments for all defined benefit and defined contribution plans amounted to \u20ac102m, consisting of \u20ac92m in employer\u2019s premiums for defined contribution plans, \u20ac9m in contributions for funded defined benefit plans and \u20ac1m in payments for unfunded plans.
The amount of employer\u2019s contributions in 2026 for remaining defined benefit pension plans is estimated to be \u20ac5m for the funded plan (UK pension plan) and \u20ac1m for the unfunded plan (early retirement plan). The total amount of employer\u2019s premiums to be paid in 2026 for the defined contribution plans is estimated to be \u20ac96m.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
\u20ac\u00a0million | Personnel | Contractual | Total restructuring | Asset retirement obligation | Other provisions | Total provisions |
|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 22 | 2 | 24 | 75 | 36 | 135 |
of which: current portion | 22 | 1 | 23 | 4 | 5 | 32 |
Additions | 28 | - | 28 | 6 | 9 | 43 |
Releases | - | - | - | -1 | -1 | -2 |
Usage | -33 | -1 | -34 | -3 | -6 | -42 |
Balance at 31 December 2024 | 17 | 1 | 19 | 77 | 38 | 134 |
of which: current portion | 17 | 1 | 18 | 4 | 7 | 29 |
Additions | 37 | - | 37 | 13 | 5 | 55 |
Releases | - | - | - | -9 | -2 | -12 |
Usage | -35 | -1 | -35 | -2 | -8 | -46 |
Changes in consolidation1 | - | - | - | 13 | - | 13 |
Balance at 31 December 2025 | 19 | 1 | 20 | 92 | 33 | 145 |
< 1 year | 18 | 1 | 19 | 5 | 6 | 30 |
1-5 years | 1 | - | 1 | 13 | 7 | 20 |
> 5 years | - | - | - | 74 | 20 | 94 |
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
Number of own personnel (FTEs) per segment1 | 31 December 2025 | 31 December 2024 |
|---|---|---|
Consumer | 2,693 | 2,931 |
Business | 2,740 | 2,811 |
Wholesale | 202 | 210 |
NOI | 2,628 | 2,772 |
Other | 873 | 939 |
Total FTEs | 9,1362 | 9,6643 |
> Of which discontinued operations | 0 | 0 |
KPN has granted conditional share awards (equity-settled) to the members of the Board of Management, and conditional share-based awards (cash-settled) based on KPN shares to members of senior management. Vesting of these shares and awards is subject to performance conditions over a three-year vesting period. Further information on the conditions of the conditional share awards for members of the Board of Management can be found under \"Long-term incentives\" in the \"Remuneration report\".
The targets for the LTI plan are set as follows:
70% financial targets, of which 45% (20% as of the 2024 plan) on cumulative free cash flow over the plan period, 25% (30% as of the 2024 plan) on relative total shareholder return (TSR) measured against the STOXX Europe 600 Telecommunications index, and 20% (as of the 2024 plan) on return on capital employed;
30% non-financial targets, determined at the start of a new plan from the following categories: (i) sustainability; (ii) reputation; (iii) social; (iv) key business projects; and (v) market share.
The main features of the awards granted to KPN management are summarized in the following table.
| \u00a0 | Board of Management | Senior management | Settlement type1 | Vesting period | Holding period after vesting of/until | Maximum term |
|---|---|---|---|---|---|---|
2021 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2022 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2023 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2024 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
2025 | X | \u00a0 | Equity2 | 3 years | 3 years | 6 years |
| \u00a0 | \u00a0 | X | Cash | 3 years | \u2013 | 3 years |
The related liability (for cash-settled shares) on 31 December 2025 was \u20ac10m (31 December 2024: \u20ac9m). This liability is included in other payables. For the 2022 equity share plan and share-based awards, the service conditions were met in 2025. The total intrinsic value at vesting was \u20ac10m (2024: \u20ac15m).
The following table presents the number of shares and share-based awards in thousands under the share plans.
| \u00a0 | Total | Granted/ additional vesting1 | Exercised/ vested | Forfeited | Total | Granted/ additional vesting2 | Exercised/ vested3 | Forfeited | Total | -of which: |
|---|---|---|---|---|---|---|---|---|---|---|
2021 Share-based awards sr. man. | 1,695 | 848 | -2,543 | - | - | - | - | - | - | - |
2021 Shares BoM | 1,357 | 679 | -2,036 | - | - | - | - | - | - | - |
2022 Share-based awards sr. man. | 1,633 | - | - | - | 1,633 | 91 | -1,724 | - | - | - |
2022 Shares BoM | 1,002 | - | - | - | 1,002 | 56 | -1,058 | - | - | - |
2023 Share-based awards sr. man. | 1,790 | 58 | - | - | 1,848 | - | - | - | 1,848 | 1,848 |
2023 Shares BoM | 1,187 | - | - | - | 1,187 | - | - | - | 1,187 | 1,187 |
2024 Share-based awards sr. man. | - | 1,892 | - | - | 1,892 | 22 | - | - | 1,914 | 1,914 |
2024 Shares BoM | - | 1,243 | - | - | 1,243 | \u00a0 | - | - | 1,243 | 1,243 |
2025 Share-based awards sr. man. | - | - | - | - | - | 1,903 | - | - | 1,903 | 1,903 |
2025 Shares BoM | - | - | - | - | - | 1,167 | - | - | 1,167 | 1,167 |
The fair value of each award at the grant date is determined using the following assumptions:
Assumptions | 2025 LTI | 2024 LTI |
|---|---|---|
Risk-free interest rate based on euro government bonds for remaining time to maturity of 2.7 years | 1.8% | 3.0% |
Expected dividend for KPN (based on one year\u2019s historical daily data preceding the date of award) | 4.7% | 4.5% |
Expected volatility (PSP grant based on 2.7 years\u2019 historical daily data) used for TSR | 13.7% | 14.5% |
Share price at date of award (closing at grant date) | \u20ac4,05 | \u20ac3,38 |
See the \"Remuneration report\" for the executive pay policy and for the number of shares under the share plans per individual board member. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
See the \"Insider transactions\" section for stock ownership of members of the Board of Management and Supervisory Board.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
See the \"Remuneration report\" for the executive pay policy and for the number of shares under the share plans per individual board member. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
See the \"Insider transactions\" section for stock ownership of members of the Board of Management and Supervisory Board.
See the \"Remuneration report\" for the actual fees received by each member of the Supervisory Board. The following table presents key management remuneration in euros.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Short-term employee benefits Board of Management (BoM) | 7,134,601 | 6,407,346 |
Post-employment benefits BoM | 836,060 | 820,182 |
Share-based payments BoM | 3,902,263 | 3,442,539 |
Total remuneration BoM | 11,872,924 | 10,670,066 |
Supervisory Board | 743,847 | 725,347 |
Total remuneration key management | 12,616,771 | 11,395,413 |
No loans, advance payments, or guarantees were provided to members of the Board of Management or the Supervisory Board.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
For details of the relationship between directors and the company, see the remuneration report section of this integrated annual report. Directors in this respect are defined as key management and relate to those having authority and responsibility for planning, directing and controlling the activities of an entity, either directly or indirectly. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
The members of KPN\u2019s Board of Management and Supervisory Board or close members of their families are also members of supervisory boards or management boards of other companies or are shareholders of other companies, without having (joint) control, with which KPN maintains relations in the ordinary course of business. All transactions with these companies are carried out on an arm\u2019s length basis.
See the \"Remuneration report\" for the executive pay policy and for the number of shares under the share plans per individual board member. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
See the \"Insider transactions\" section for stock ownership of members of the Board of Management and Supervisory Board.
See the \"Remuneration report\" for the actual fees received by each member of the Supervisory Board. The following table presents key management remuneration in euros.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Short-term employee benefits Board of Management (BoM) | 7,134,601 | 6,407,346 |
Post-employment benefits BoM | 836,060 | 820,182 |
Share-based payments BoM | 3,902,263 | 3,442,539 |
Total remuneration BoM | 11,872,924 | 10,670,066 |
Supervisory Board | 743,847 | 725,347 |
Total remuneration key management | 12,616,771 | 11,395,413 |
No loans, advance payments, or guarantees were provided to members of the Board of Management or the Supervisory Board.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
KPN considers none of its related-party transactions to be material on an individual basis. Transactions between group companies are not included in the description below as these are eliminated in the \"Consolidated financial statements\".
Pursuant to the Dutch Financial Supervisory Act (\u2018Wet op het financieel toezicht\u2019 or \u2018Wft\u2019), any persons must immediately notify the Dutch Authority for the Financial Markets (\u2018AFM\u2019)\u00a0when its shareholding or voting right equals, exceeds or falls below certain thresholds of a company\u2019s issued capital, starting at a 3% threshold. The AFM discloses such reports in its public register. Below is an overview, based on this register, of shareholdings or voting rights of 3% or more in KPN\u2019s issued capital per 31 December 2025.
Date of notification to the AFM | Notification by | % of shares | % of voting rights |
|---|---|---|---|
2 August 2022 | Capital Research and Management Company | - | 9.70 |
9 February 2024 | BlackRock, Inc. | 6.44 | 7.70 |
24 April 2025 | The Income Fund of America | 3.66 | 3.66 |
20 June 2025 | State Street Corporation | 3.16 | 2.25 |
27 August 2025 | Amundi Asset Management | 3.12 | 3.12 |
11 September 2025 | Canada Pension Plan Investment Board | 3.00 | 3.00 |
13 November 2025 | JP Morgan Asset Management Holdings, Inc. | 3.02 | 2.58 |
KPN did not enter into agreements with shareholders that could have a material impact on KPN\u2019s financial statements.
On 9 June 2021, KPN sold 50% of the shares of its subsidiary Glaspoort and entered into a joint venture agreement with ABP (see Note 12). As of 9 June 2021, KPN's remaining 50% interest in Glaspoort is classified as a joint venture and accounted for using the equity method. KPN is the anchor tenant on Glaspoort's network and also supplies services to Glaspoort. In 2024, KPN and ABP agreed on an adjustment to the Glaspoort demarcation which was part of the joint venture agreement in 2021. The transaction is an exchange of geographical areas between KPN and Glaspoort, which will be used by KPN and Glaspoort for similar purposes and have comparable risk profiles and fair values. Other than the settlement of costs already incurred by KPN (\u20ac19m), there is no other financial compensation.\u00a0
The value of the services delivered to and acquired from Glaspoort, and its joint venture GlasDraad, amounted to \u20ac23m and \u20ac71m respectively in 2025 (2024: \u20ac17m and \u20ac49m respectively). Moreover, in December 2021, KPN, ABP and Glaspoort signed an agreement to extend the scope of Glaspoort's fiber rollout. It was agreed that KPN will receive \u20ac170m (pre-tax) from Glaspoort for the sale of the additional scope projects in annual installments based on the fiber rollout starting in 2023. At 31 December 2025, KPN had received \u20ac165m of the total consideration agreed upon (\u20ac60m in cash upon closing of the transaction in 2021, \u20ac51m during 2023, \u20ac31m during 2024 and \u20ac23m during 2025). During 2025, Glaspoort received additional share premium contributions from its shareholders. KPN contributed \u20ac56m (2024: \u20ac20m). Trade and other receivables with respect to Glaspoort at 31 December 2025 amounted to \u20ac5m (2024: \u20ac18m), trade and other payables to \u20ac9m (2024: \u20ac13m), non-current contract assets to nil (2024: \u20ac5m), and current contract assets to \u20ac5m (2024: \u20ac23m); there were no current contract liabilities.
The following table shows the total value of the transactions by KPN with other associated and non-consolidated companies for the relevant year:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Sales in the year | 3 | 14 |
Purchases in the year | 16 | 17 |
Trade receivables at 31 December | <1 | <1 |
Trade payables at 31 December | <1 | <1 |
For details of the relationship between directors and the company, see the remuneration report section of this integrated annual report. Directors in this respect are defined as key management and relate to those having authority and responsibility for planning, directing and controlling the activities of an entity, either directly or indirectly. At KPN, key management consists of the members of the Board of Management and the Supervisory Board.
The members of KPN\u2019s Board of Management and Supervisory Board or close members of their families are also members of supervisory boards or management boards of other companies or are shareholders of other companies, without having (joint) control, with which KPN maintains relations in the ordinary course of business. All transactions with these companies are carried out on an arm\u2019s length basis.
Name of significant subsidiaries and other principal interests | Country of incorporation |
|---|---|
KPN B.V. | Netherlands |
- Althio B.V. | Netherlands |
- Broadband Hosting B.V. | Netherlands |
- E-Zorg B.V. | Netherlands |
- Glaspoort B.V. | Netherlands |
- GroupIT B.V. | Netherlands |
- RoutIT B.V. | Netherlands |
- Inspark Holding B.V. | Netherlands |
- InSpark B.V. | Netherlands |
- KPN Finance B.V. | Netherlands |
- Reggefiber Group B.V. | Netherlands |
- Reggefiber Operator B.V. | Netherlands |
- Reggefiber ttH B.V. | Netherlands |
- Netwerk Exploitatiemaatschappij B.V. | Netherlands |
- Solcon Internetdiensten B.V. | Netherlands |
- Youfone Nederland B.V. | Netherlands |
- Youfone Zakelijk B.V. | Netherlands |
KPN Mobile Holding B.V. | Netherlands |
- KPN Mobile N.V. | Netherlands |
KPN Ventures B.V. | Netherlands |
Getronics B.V. | Netherlands |
- Getronics Finance Holdings B.V. | Netherlands |
- Getronics Pensions UK Ltd. | UK |
- Getronics US Operations, Inc. | US |
KPN Insurance Company DAC | Ireland |
The percentage ownership/voting interest of these entities is 100%, except for:
Althio B.V. (51% interest)
Joint venture Glaspoort B.V. (50% interest)
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
Costs of goods and services are costs incurred in the context of a sales transaction and include subscriber acquisition and retention costs and traffic expenses. These costs are expensed as incurred, except handset fees paid to dealers and transaction-related dealer commissions that are capitalized and amortized over the contract term. The cost of a handset is expensed when the handset is sold (as incurred), both as an individual sale or as a component of a transaction in combination with a subscription.
Information technology (IT) expenses relate to KPN\u2019s IT environment and include licenses and maintenance expenses for software and/or IT hardware when not directly related to a sales transaction. Technical infrastructure (TI) expenses are expenses related to KPN\u2019s fixed and mobile networks. Personnel expenses are all expenses related to KPN\u2019s workforce, both related to own employees and external personnel from employment agencies.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
The current income tax expense is calculated in accordance with the prevailing tax regulations and rates, taking into account non-taxable income and non-deductible expenses. The current income tax expense reflects the amount for the current reporting period that KPN expects to recover from or pay to the tax authorities. Income tax related to items recognized directly in equity/OCI is recorded in equity/OCI and not in profit or loss, with the exception of perpetual hybrid bonds classified as equity.
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and liabilities and their carrying values. Deferred tax assets (DTAs) are recognized for deductible temporary differences, the carry-forward of unused tax credits, and any unused tax losses. DTAs are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be used. Both recognized and unrecognized DTAs are reassessed on each reporting date based on available projections. If future taxable profits are insufficiently available, derecognition may become inevitable, unless certain exceptions can be applied. DTAs are recorded for deductible temporary differences associated with investments in subsidiaries and associates. They are recorded only to the extent that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be used.
Deferred tax liabilities (DTLs) are recognized for all taxable temporary differences except when they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the profit or loss reported in the statement of profit or loss nor the taxable profit or loss. Also, no DTLs are recorded for taxable temporary differences associated with investments in subsidiaries and associates when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates KPN expects to be applicable in the year when the asset is realized or the liability is settled based on enacted or substantially enacted tax laws.
DTAs and DTLs are netted if there is a legally enforceable right to offset current tax assets against current tax liabilities and the DTAs/DTLs relate to income taxes levied by the same taxation authority on the same taxable entity or if, in the case of different taxable entities, there is an intention either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
KPN\u2019s management periodically evaluates positions taken in the tax returns against situations in which uncertainty on a tax position exists over whether the relevant taxation authority will accept the tax treatment under law. In line with IFRIC 23, these uncertain tax positions (UTP) are recognized when it is concluded that it is not probable that the taxation authority will accept an uncertain tax treatment. When these criteria are not met, these positions are classified as contingent liabilities, unless the outflow of economic resources is considered remote.
For equity-settled plans, the fair value of shares granted to employees is measured at grant date. For cash-settled plans, the fair value of the liability for the awards granted is remeasured at each reporting date and at settlement date. The fair value measured for the awards made under the plans includes the impact of market conditions.
The costs of share-based compensation plans are determined based on the fair value of the shares and the number of shares expected to vest. On each balance date, KPN determines whether it is necessary to revise the expectation of the number of shares that will vest. The fair value is recognized as personnel expense in profit or loss over the vesting period of the shares against an increase in equity in the case of equity-settled share-based compensation plans and against the recognition of a liability in the case of cash-settled share-based compensation plans.
Operating expenses are divided into:
Direct costs: costs of goods & services;
Indirect costs: information technology / technical infrastructure (IT/TI), personnel expenses, other operating expenses and depreciation, amortization & impairments (DA&I).
See Note 5 for the disclosure of personnel expenses and Notes 10, 11 and 19 for DA&I.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Cost of goods sold | 389 | 397 |
Cost of services | 804 | 754 |
Subscriber acquisition & retention costs | 158 | 146 |
Traffic expenses | 155 | 131 |
Cost of goods & services | 1,506 | 1,428 |
Cost of services in 2025 includes costs related to the settlement of two IPR claims with telecom vendors (\u20ac19m).
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Marketing & communication | 120 | 122 |
Billing & collection | 5 | 25 |
Housing & facilities | 143 | 155 |
Other fixed costs | 88 | 82 |
Addition to restructuring provision | 37 | 28 |
Other operating expenses | 392 | 412 |
The fees recognized as expenses in the 2025 financial year relate to the services provided to KPN and its consolidated group entities by PricewaterhouseCoopers Accountants N.V. and other members of the PwC network.
The fees recognized as expenses in the 2024 financial year relate to the services provided to KPN and its consolidated group entities by EY Accountants B.V., as well as by other Dutch and foreign-based EY individual partnerships and legal entities.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | PwC Netherlands | Other PwC network | EY Netherlands | Other EY network |
Financial statements audit fees | 4.2 | - | 4.3 | - |
Audit of annual statutory financial statements of subsidiaries\u200b\u200b | 0.3 | 0.1 | - | 0.1 |
Other assurance fees | 1.2 | - | 1.6 | - |
Tax advisory services | - | - | - | - |
Other non-audit services | - | - | - | - |
Total auditor's fees | 5.7 | 0.2 | 5.9 | 0.1 |
The auditor's fees include the fees for professional services rendered for the audit of KPN\u2019s annual financial statements and the fees for the audit of annual statutory financial statements of subsidiaries or for services that are normally provided by the auditor in connection with the audits. The audit fees are the total fees for the examination of the financial statements for the reporting period to which the financial statements relate, irrespective of whether the work of the auditor was performed during that reporting period.
Other assurance fees include the fees for the assurance on KPN's sustainability statement and the fees incurred for assurance and related services that are reasonably related to the performance of the audit or review of KPN\u2019s financial statements, such as revenue and IT-related assurance services and regulatory-related assurance services.
Costs of goods and services are costs incurred in the context of a sales transaction and include subscriber acquisition and retention costs and traffic expenses. These costs are expensed as incurred, except handset fees paid to dealers and transaction-related dealer commissions that are capitalized and amortized over the contract term. The cost of a handset is expensed when the handset is sold (as incurred), both as an individual sale or as a component of a transaction in combination with a subscription.
Information technology (IT) expenses relate to KPN\u2019s IT environment and include licenses and maintenance expenses for software and/or IT hardware when not directly related to a sales transaction. Technical infrastructure (TI) expenses are expenses related to KPN\u2019s fixed and mobile networks. Personnel expenses are all expenses related to KPN\u2019s workforce, both related to own employees and external personnel from employment agencies.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
The fees recognized as expenses in the 2025 financial year relate to the services provided to KPN and its consolidated group entities by PricewaterhouseCoopers Accountants N.V. and other members of the PwC network.
The fees recognized as expenses in the 2024 financial year relate to the services provided to KPN and its consolidated group entities by EY Accountants B.V., as well as by other Dutch and foreign-based EY individual partnerships and legal entities.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | PwC Netherlands | Other PwC network | EY Netherlands | Other EY network |
Financial statements audit fees | 4.2 | - | 4.3 | - |
Audit of annual statutory financial statements of subsidiaries\u200b\u200b | 0.3 | 0.1 | - | 0.1 |
Other assurance fees | 1.2 | - | 1.6 | - |
Tax advisory services | - | - | - | - |
Other non-audit services | - | - | - | - |
Total auditor's fees | 5.7 | 0.2 | 5.9 | 0.1 |
The auditor's fees include the fees for professional services rendered for the audit of KPN\u2019s annual financial statements and the fees for the audit of annual statutory financial statements of subsidiaries or for services that are normally provided by the auditor in connection with the audits. The audit fees are the total fees for the examination of the financial statements for the reporting period to which the financial statements relate, irrespective of whether the work of the auditor was performed during that reporting period.
Other assurance fees include the fees for the assurance on KPN's sustainability statement and the fees incurred for assurance and related services that are reasonably related to the performance of the audit or review of KPN\u2019s financial statements, such as revenue and IT-related assurance services and regulatory-related assurance services.
See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
PPE category | Depreciation period |
|---|---|
Land | No depreciation |
Buildings | 14-33 years |
Network equipment | 3-7 years |
Fiber network infrastructure | 30 years |
Copper network infrastructure | 5-10 years |
Office equipment | 4-10 years |
The assets\u2019 residual values and useful lives are reviewed at least annually and adjusted if appropriate.
PPE are depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. PPE are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the assets\u2019 book value exceeds their recoverable amount.
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
The right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Right-of-use assets are subject to impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i7811": { "value": "See Notes 10, 11 and 19 for the accounting policy regarding depreciation, amortization and impairments.
Impairments of PPE are reversed if and to the extent that the reasons for previously recognized impairment losses no longer exist. The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value-in-use.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7926": { "value": "\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Total net financial results improved by \u20ac5m to a net cost of \u20ac287m.
Finance income decreased by \u20ac27m to \u20ac14m compared with 2024, mainly due to lower average cash balances and lower yields on cash.
Finance costs decreased by \u20ac12m to \u20ac267m, which was mainly related to lower interest on borrowings of \u20ac230m (2024: \u20ac245m) including a non-cash amount of \u20ac6m (2024: \u20ac5m) relating to debt issuance costs including premiums and/or discounts, which are amortized over the life of the respective bonds using the effective interest rate method. Other interest expenses increased by \u20ac\u00a08m mainly due to interest cost on Althio's term loan.
Other financial results improved by \u20ac21m to a net cost of \u20ac34m (2024: \u20ac55m net cost) which is mainly the result of \u20ac14m charges related to the termination of hedge accounting on unwound swaps compared to \u20ac60m charges in 2024 related to a bond tender and \u20ac10m loss due to exchange rate differences compared to a gain of \u20ac12m in 2024.
\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Finance income decreased by \u20ac27m to \u20ac14m compared with 2024, mainly due to lower average cash balances and lower yields on cash.
Finance costs decreased by \u20ac12m to \u20ac267m, which was mainly related to lower interest on borrowings of \u20ac230m (2024: \u20ac245m) including a non-cash amount of \u20ac6m (2024: \u20ac5m) relating to debt issuance costs including premiums and/or discounts, which are amortized over the life of the respective bonds using the effective interest rate method. Other interest expenses increased by \u20ac\u00a08m mainly due to interest cost on Althio's term loan.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i7817": { "value": "\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Finance costs decreased by \u20ac12m to \u20ac267m, which was mainly related to lower interest on borrowings of \u20ac230m (2024: \u20ac245m) including a non-cash amount of \u20ac6m (2024: \u20ac5m) relating to debt issuance costs including premiums and/or discounts, which are amortized over the life of the respective bonds using the effective interest rate method. Other interest expenses increased by \u20ac\u00a08m mainly due to interest cost on Althio's term loan.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i7818": { "value": "Finance income decreased by \u20ac27m to \u20ac14m compared with 2024, mainly due to lower average cash balances and lower yields on cash.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i7819": { "value": "\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Total net financial results improved by \u20ac5m to a net cost of \u20ac287m.
Finance costs decreased by \u20ac12m to \u20ac267m, which was mainly related to lower interest on borrowings of \u20ac230m (2024: \u20ac245m) including a non-cash amount of \u20ac6m (2024: \u20ac5m) relating to debt issuance costs including premiums and/or discounts, which are amortized over the life of the respective bonds using the effective interest rate method. Other interest expenses increased by \u20ac\u00a08m mainly due to interest cost on Althio's term loan.
Other financial results improved by \u20ac21m to a net cost of \u20ac34m (2024: \u20ac55m net cost) which is mainly the result of \u20ac14m charges related to the termination of hedge accounting on unwound swaps compared to \u20ac60m charges in 2024 related to a bond tender and \u20ac10m loss due to exchange rate differences compared to a gain of \u20ac12m in 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i7820": { "value": "\u20ac\u00a0million | Notes | 2025 | 2024 |
|---|---|---|---|
Finance income | \u00a0 | 14 | 41 |
Interest on borrowings | \u00a0 | -230 | -245 |
Interest expense lease liability | [19] | -20 | -23 |
Interest on other provisions | \u00a0 | -1 | -1 |
Other interest expenses | \u00a0 | -17 | -9 |
Finance costs | \u00a0 | -267 | -279 |
Hedge ineffectiveness | \u00a0 | -8 | -7 |
Amortization of discontinued or restructured cash flow hedges | \u00a0 | -13 | -12 |
Amortization of discontinued fair value hedges | \u00a0 | 9 | 18 |
Derivative financial instruments not qualified for hedge accounting | [13.3] | - | -7 |
Exchange rate differences | \u00a0 | -10 | 12 |
Fair value change on contingent cash receivable Glaspoort | [13.1] | -2 | - |
Bond tender premiums and swap unwind | [13.2] | -14 | -60 |
Other | \u00a0 | 5 | 1 |
Other financial results | \u00a0 | -34 | -55 |
Total | \u00a0 | -287 | -293 |
Total net financial results improved by \u20ac5m to a net cost of \u20ac287m.
Finance income decreased by \u20ac27m to \u20ac14m compared with 2024, mainly due to lower average cash balances and lower yields on cash.
Other financial results improved by \u20ac21m to a net cost of \u20ac34m (2024: \u20ac55m net cost) which is mainly the result of \u20ac14m charges related to the termination of hedge accounting on unwound swaps compared to \u20ac60m charges in 2024 related to a bond tender and \u20ac10m loss due to exchange rate differences compared to a gain of \u20ac12m in 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i7930": { "value": "The book loss recognized as a result of the sale of E-Plus in 2014 was used to offset KPN\u2019s taxable income in the Netherlands in 2014 up to and including 2025, and will be used to offset a part of KPN\u2019s taxable income in the Netherlands in the year hereafter.
KPN applies a temporary mandatory relief from deferred tax accounting for the impacts of the new legislation to implement the global minimum tax rate (Pillar Two) and will account for it as a current tax (if any). Based on the transitional safe harbor rules, and the most recent information available regarding the financial performance of the entities in scope, KPN\u2019s effective tax rate is above 15% in the Netherlands and has limited substance in all other jurisdictions in which it operates (de minimis test or an immaterial exposure). KPN currently estimates that it is not subject to material Pillar Two \u201ctop-up\u201d taxes in 2025. Management does not expect that this estimate might change significantly. See \"Tax governance\" section.
KPN has an agreement with the Dutch tax authorities with respect to the application of the Dutch innovation box tax regime. This is a facility under Dutch corporate income tax law whereby profits attributable to innovation are taxed at an effective rate of 9.0% (2024: 9.0%). The application of the innovation box resulted in a benefit of \u20ac32m in 2025 (2024: \u20ac31m).
See Note 21 for the impact of the acquisitions and disposals of subsidiaries and business units.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Current tax | -159 | -149 |
Deferred taxes | -58 | -89 |
Income tax (charge)/benefit from continuing operations | -217 | -238 |
The reconciliation from the Dutch statutory tax rate of 25.8% (2024: 25.8%) to the effective tax rate (ETR) of 20.0% (2024: 21.7%) is explained in the following table:
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
| \u00a0 | \u20ac\u00a0million | ETR | \u20ac\u00a0million | ETR |
Profit before income tax from continuing operations excluding | 1,082 | \u00a0 | 1,100 | \u00a0 |
Taxes at Dutch statutory tax rates | -279 | 25.8% | -284 | 25.8% |
Non-taxable income, non-deductible expenses | -4 | 0.4% | -4 | 0.4% |
Participation exemption on the sale of subsidiaries | -3 | 0.3% | - | 0.0% |
Innovation tax facilities current year | 32 | -3.0% | 31 | -2.8% |
Deferred tax related to current year | 241 | -2.2% | 3 | -0.3% |
Tax benefit perpetual hybrid bonds | 14 | -1.3% | 12 | -1.1% |
Other | -1 | 0.1% | 3 | -0.3% |
Income tax benefit/(charge) from continuing operations | -217 | 20.0% | -238 | 21.7% |
| Tax loss & other carry-forwards1 | Bonds & | Land, Buildings, Property, plant and equipment3 | Lease liabilities4 | Other | Offset against deferred tax liabilities | Total |
|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 259 | 40 | 84 | 218 | 29 | -520 | 111 |
Income statement benefit/(charge) | - | -5 | -26 | -17 | 2 | - | -47 |
Transfer to current tax | -74 | - | - | - | - | - | -74 |
Tax charged to OCI | - | -6 | - | - | - | - | -6 |
Other | - | - | - | - | -1 | 17 | 16 |
Balance at 31 December 2024 | 185 | 30 | 58 | 201 | 29 | -503 | - |
Income statement benefit/(charge) | - | - | 2 | -28 | 1 | - | -25 |
Transfer to current tax | -82 | - | - | - | - | - | -82 |
Tax charged to OCI | - | -17 | - | - | - | - | -17 |
New consolidations5 | - | - | -10 | 1 | 5 | - | -4 |
Other | - | - | - | - | -2 | 130 | 128 |
Balance at 31 December 2025 | 1036 | 13 | 517 | 174 | 33 | -373 | - |
| Software development1 | Goodwill depreciation2 | PPA3 | PPE: arbitrary | Right of use assets4 | Other5 | Offset against deferred tax assets | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 77 | 117 | 27 | 111 | 187 | 1 | -520 | - |
Income statement charge/(benefit) | 6 | - | -9 | -15 | -15 | - | - | -32 |
Other | - | - | 25 | - | - | - | 17 | 42 |
Balance at 31 December 2024 | 83 | 117 | 43 | 96 | 172 | 1 | -503 | 10 |
Income statement charge/(benefit) | -4 | - | -11 | -18 | -18 | 1 | - | -49 |
New consolidations6 | - | - | 41 | - | 2 | - | - | 43 |
Other | - | - | - | - | - | - | 130 | 130 |
Balance at 31 December 2025 | 79 | 117 | 73 | 78 | 157 | 3 | -373 | 134 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
Koninklijke KPN \u2013 corporate tax1 | 400 | 103 | 103 | 719 | 185 | 185 |
Other | 1002 | 21 | - | 1132 | 24 | - |
Total KPN Group3 | 499 | 124 | 103 | 832 | 209 | 185 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
2026 | 2 | - | - | 4 | 1 | - |
2027 | - | - | - | - | - | - |
2028 | 7 | 1 | - | 8 | 2 | - |
2029 | 8 | 2 | - | - | - | - |
Later | 37 | 8 | - | 51 | 11 | - |
Unlimited | 445 | 113 | 103 | 769 | 196 | 185 |
Total | 499 | 124 | 103 | 832 | 209 | 185 |
The current income tax expense is calculated in accordance with the prevailing tax regulations and rates, taking into account non-taxable income and non-deductible expenses. The current income tax expense reflects the amount for the current reporting period that KPN expects to recover from or pay to the tax authorities. Income tax related to items recognized directly in equity/OCI is recorded in equity/OCI and not in profit or loss, with the exception of perpetual hybrid bonds classified as equity.
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and liabilities and their carrying values. Deferred tax assets (DTAs) are recognized for deductible temporary differences, the carry-forward of unused tax credits, and any unused tax losses. DTAs are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be used. Both recognized and unrecognized DTAs are reassessed on each reporting date based on available projections. If future taxable profits are insufficiently available, derecognition may become inevitable, unless certain exceptions can be applied. DTAs are recorded for deductible temporary differences associated with investments in subsidiaries and associates. They are recorded only to the extent that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be used.
Deferred tax liabilities (DTLs) are recognized for all taxable temporary differences except when they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the profit or loss reported in the statement of profit or loss nor the taxable profit or loss. Also, no DTLs are recorded for taxable temporary differences associated with investments in subsidiaries and associates when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates KPN expects to be applicable in the year when the asset is realized or the liability is settled based on enacted or substantially enacted tax laws.
DTAs and DTLs are netted if there is a legally enforceable right to offset current tax assets against current tax liabilities and the DTAs/DTLs relate to income taxes levied by the same taxation authority on the same taxable entity or if, in the case of different taxable entities, there is an intention either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
KPN\u2019s management periodically evaluates positions taken in the tax returns against situations in which uncertainty on a tax position exists over whether the relevant taxation authority will accept the tax treatment under law. In line with IFRIC 23, these uncertain tax positions (UTP) are recognized when it is concluded that it is not probable that the taxation authority will accept an uncertain tax treatment. When these criteria are not met, these positions are classified as contingent liabilities, unless the outflow of economic resources is considered remote.
| Tax loss & other carry-forwards1 | Bonds & | Land, Buildings, Property, plant and equipment3 | Lease liabilities4 | Other | Offset against deferred tax liabilities | Total |
|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 259 | 40 | 84 | 218 | 29 | -520 | 111 |
Income statement benefit/(charge) | - | -5 | -26 | -17 | 2 | - | -47 |
Transfer to current tax | -74 | - | - | - | - | - | -74 |
Tax charged to OCI | - | -6 | - | - | - | - | -6 |
Other | - | - | - | - | -1 | 17 | 16 |
Balance at 31 December 2024 | 185 | 30 | 58 | 201 | 29 | -503 | - |
Income statement benefit/(charge) | - | - | 2 | -28 | 1 | - | -25 |
Transfer to current tax | -82 | - | - | - | - | - | -82 |
Tax charged to OCI | - | -17 | - | - | - | - | -17 |
New consolidations5 | - | - | -10 | 1 | 5 | - | -4 |
Other | - | - | - | - | -2 | 130 | 128 |
Balance at 31 December 2025 | 1036 | 13 | 517 | 174 | 33 | -373 | - |
| Software development1 | Goodwill depreciation2 | PPA3 | PPE: arbitrary | Right of use assets4 | Other5 | Offset against deferred tax assets | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 31 December 2023 | 77 | 117 | 27 | 111 | 187 | 1 | -520 | - |
Income statement charge/(benefit) | 6 | - | -9 | -15 | -15 | - | - | -32 |
Other | - | - | 25 | - | - | - | 17 | 42 |
Balance at 31 December 2024 | 83 | 117 | 43 | 96 | 172 | 1 | -503 | 10 |
Income statement charge/(benefit) | -4 | - | -11 | -18 | -18 | 1 | - | -49 |
New consolidations6 | - | - | 41 | - | 2 | - | - | 43 |
Other | - | - | - | - | - | - | 130 | 130 |
Balance at 31 December 2025 | 79 | 117 | 73 | 78 | 157 | 3 | -373 | 134 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
Koninklijke KPN \u2013 corporate tax1 | 400 | 103 | 103 | 719 | 185 | 185 |
Other | 1002 | 21 | - | 1132 | 24 | - |
Total KPN Group3 | 499 | 124 | 103 | 832 | 209 | 185 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset | Tax loss carry-forward | Maximum deferred tax asset | Recognized deferred tax asset |
2026 | 2 | - | - | 4 | 1 | - |
2027 | - | - | - | - | - | - |
2028 | 7 | 1 | - | 8 | 2 | - |
2029 | 8 | 2 | - | - | - | - |
Later | 37 | 8 | - | 51 | 11 | - |
Unlimited | 445 | 113 | 103 | 769 | 196 | 185 |
Total | 499 | 124 | 103 | 832 | 209 | 185 |
The current income tax expense is calculated in accordance with the prevailing tax regulations and rates, taking into account non-taxable income and non-deductible expenses. The current income tax expense reflects the amount for the current reporting period that KPN expects to recover from or pay to the tax authorities. Income tax related to items recognized directly in equity/OCI is recorded in equity/OCI and not in profit or loss, with the exception of perpetual hybrid bonds classified as equity.
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and liabilities and their carrying values. Deferred tax assets (DTAs) are recognized for deductible temporary differences, the carry-forward of unused tax credits, and any unused tax losses. DTAs are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be used. Both recognized and unrecognized DTAs are reassessed on each reporting date based on available projections. If future taxable profits are insufficiently available, derecognition may become inevitable, unless certain exceptions can be applied. DTAs are recorded for deductible temporary differences associated with investments in subsidiaries and associates. They are recorded only to the extent that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be used.
Deferred tax liabilities (DTLs) are recognized for all taxable temporary differences except when they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the profit or loss reported in the statement of profit or loss nor the taxable profit or loss. Also, no DTLs are recorded for taxable temporary differences associated with investments in subsidiaries and associates when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates KPN expects to be applicable in the year when the asset is realized or the liability is settled based on enacted or substantially enacted tax laws.
DTAs and DTLs are netted if there is a legally enforceable right to offset current tax assets against current tax liabilities and the DTAs/DTLs relate to income taxes levied by the same taxation authority on the same taxable entity or if, in the case of different taxable entities, there is an intention either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
KPN\u2019s management periodically evaluates positions taken in the tax returns against situations in which uncertainty on a tax position exists over whether the relevant taxation authority will accept the tax treatment under law. In line with IFRIC 23, these uncertain tax positions (UTP) are recognized when it is concluded that it is not probable that the taxation authority will accept an uncertain tax treatment. When these criteria are not met, these positions are classified as contingent liabilities, unless the outflow of economic resources is considered remote.
Deferred income tax positions are recognized for temporary differences between the tax basis of assets and liabilities and their carrying values. Deferred tax assets (DTAs) are recognized for deductible temporary differences, the carry-forward of unused tax credits, and any unused tax losses. DTAs are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be used. Both recognized and unrecognized DTAs are reassessed on each reporting date based on available projections. If future taxable profits are insufficiently available, derecognition may become inevitable, unless certain exceptions can be applied. DTAs are recorded for deductible temporary differences associated with investments in subsidiaries and associates. They are recorded only to the extent that it is probable that the temporary differences will reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be used.
Deferred tax liabilities (DTLs) are recognized for all taxable temporary differences except when they arise from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the profit or loss reported in the statement of profit or loss nor the taxable profit or loss. Also, no DTLs are recorded for taxable temporary differences associated with investments in subsidiaries and associates when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax positions are stated at nominal value and are measured at the corporate income tax rates KPN expects to be applicable in the year when the asset is realized or the liability is settled based on enacted or substantially enacted tax laws.
DTAs and DTLs are netted if there is a legally enforceable right to offset current tax assets against current tax liabilities and the DTAs/DTLs relate to income taxes levied by the same taxation authority on the same taxable entity or if, in the case of different taxable entities, there is an intention either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i8455": { "value": "The following table shows the income and shares data used in the calculations of basic and diluted EPS.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Profit for the year from continuing operations | 855 | 847 |
Profit for the year from discontinued operations | - | - |
Profit for the year | 855 | 848 |
Profit attributable to non-controlling interests | - | - |
Deduction for perpetual capital securities1 | -55 | -50 |
Adjusted profit (loss) attributable to ordinary shareholders of the company | 800 | 798 |
Weighted average number of subscribed ordinary shares | 3,847,674,749 | 3,897,111,038 |
Dilution effects: non-vested shares | 3,492,618 | 3,345,533 |
Weighted average number of subscribed ordinary shares including dilution effects | 3,851,167,366 | 3,900,456,571 |
Earnings per ordinary share after taxes attributable to equity holders of the company for the year:
\u20ac | 2025 | 2024 |
|---|---|---|
Basic (continuing operations) | 0.21 | 0.20 |
Diluted (continuing operations) | 0.21 | 0.20 |
Basic (discontinued operations) | - | - |
Diluted (discontinued operations) | - | - |
Basic (total, including discontinued operations) | 0.21 | 0.20 |
Diluted (total, including discontinued operations) | 0.21 | 0.20 |
Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Non-vested shares are regarded to have potential dilutive effects on the ordinary shares.
The total basic earnings per share include \u20ac0.06 (2024: \u20ac0.06) in tax expenses.
Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Non-vested shares are regarded to have potential dilutive effects on the ordinary shares.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i8676": { "value": "\u20ac\u00a0million | Land and buildings | Plant and equipment | Other tangible non-current assets | Assets under construction | Total |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 361 | 5,312 | 24 | 247 | 5,943 |
Investments | 5 | 4 | 1 | 996 | 1,007 |
Transfers from AuC to other PPE | 46 | 1,044 | 8 | -1,098 | - |
Depreciation | -40 | -675 | -10 | - | -725 |
Impairments and retirements | -2 | -6 | - | -2 | -10 |
Changes in consolidation1 | 3 | 20 | - | - | 23 |
Other | -2 | -18 | - | - | -20 |
Closing net book value | 371 | 5,681 | 23 | 144 | 6,219 |
Cost | 1,572 | 9,746 | 52 | 144 | 11,514 |
Accumulated depreciation/impairments | -1,202 | -4,065 | -29 | - | -5,295 |
Balance at 31 December 2024 | 371 | 5,681 | 23 | 144 | 6,219 |
Investments | 9 | 6 | 2 | 1,019 | 1,037 |
Transfers from AuC to other PPE | 58 | 908 | 9 | -974 | - |
Depreciation | -55 | -711 | -11 | - | -777 |
Impairments and retirements | -3 | -13 | - | -1 | -17 |
Changes in consolidation2 | 116 | - | 1 | -2 | 114 |
Other | 2 | 1 | - | -6 | -4 |
Closing net book value | 497 | 5,872 | 24 | 179 | 6,571 |
Cost | 1,710 | 10,283 | 56 | 179 | 12,228 |
Accumulated depreciation/impairments | -1,213 | -4,411 | -32 | - | -5,656 |
Balance at 31 December 2025 | 497 | 5,872 | 24 | 179 | 6,571 |
PPE category | Depreciation period |
|---|---|
Land | No depreciation |
Buildings | 14-33 years |
Network equipment | 3-7 years |
Fiber network infrastructure | 30 years |
Copper network infrastructure | 5-10 years |
Office equipment | 4-10 years |
The assets\u2019 residual values and useful lives are reviewed at least annually and adjusted if appropriate.
In early 2020, KPN announced its plans to phase out its copper network in early 2023. This applied to existing addresses where fiber service delivery has been available since early 2020, as well as to addresses included in fiber rollout projects that had already been announced and were under construction at that time. Together with the current fiber rollout, these overlay addresses receive an announcement that copper will be phased out after three years. The depreciation of this part of the copper network was accelerated for an additional amount of \u20ac2m in 2025 (2024: \u20ac2m).
PPE are valued at cost less depreciation and impairment. The cost includes direct costs (materials, direct labor and work contracted out) and directly attributable overhead costs.
Asset retirement obligations are capitalized as part of the cost of tangible fixed assets and expensed as either depreciation over the assets\u2019 estimated useful life or as impairment charges.
Impairments of PPE are reversed if and to the extent that the reasons for previously recognized impairment losses no longer exist. The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value-in-use.
PPE are depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. PPE are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the assets\u2019 book value exceeds their recoverable amount.
Interest is capitalized as an increase in PPE if the construction of assets takes a substantial period of time and the amount is material.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Recognized amounts of identifiable assets acquired and liabilities assumed: | \u00a0 | \u00a0 |
Intangible assets | - | - |
Property, plant and equipment | - | 8 |
Deferred income tax asset | - | - |
Trade and other receivables, prepayments and accrued income | - | - |
Net cash and cash equivalents | - | - |
Trade and other payables and accrued expenses | - | - |
Total net assets | - | 8 |
Total transaction costs | - | - |
Cash consideration | - | 8 |
Contingent cash consideration | - | - |
Total consideration | - | 8 |
On 3 July 2024, KPN purchased the fiber networks of GNB Lochem B.V. and added approximately 4,071 homes passed to KPN's own fiber footprint. As the assets acquired and liabilities assumed do not constitute a business, the transaction has been accounted for as an asset acquisition and no goodwill has been recognized. The total consideration paid (\u20ac8m) has been allocated to the assets acquired and liabilities assumed on a relative fair value basis.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i8457": { "value": "PPE category | Depreciation period |
|---|---|
Land | No depreciation |
Buildings | 14-33 years |
Network equipment | 3-7 years |
Fiber network infrastructure | 30 years |
Copper network infrastructure | 5-10 years |
Office equipment | 4-10 years |
The assets\u2019 residual values and useful lives are reviewed at least annually and adjusted if appropriate.
PPE are valued at cost less depreciation and impairment. The cost includes direct costs (materials, direct labor and work contracted out) and directly attributable overhead costs.
Asset retirement obligations are capitalized as part of the cost of tangible fixed assets and expensed as either depreciation over the assets\u2019 estimated useful life or as impairment charges.
Impairments of PPE are reversed if and to the extent that the reasons for previously recognized impairment losses no longer exist. The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value-in-use.
PPE are depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. PPE are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the assets\u2019 book value exceeds their recoverable amount.
Interest is capitalized as an increase in PPE if the construction of assets takes a substantial period of time and the amount is material.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i8458": { "value": "\u20ac\u00a0million | Land and buildings | Plant and equipment | Other tangible non-current assets | Assets under construction | Total |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 361 | 5,312 | 24 | 247 | 5,943 |
Investments | 5 | 4 | 1 | 996 | 1,007 |
Transfers from AuC to other PPE | 46 | 1,044 | 8 | -1,098 | - |
Depreciation | -40 | -675 | -10 | - | -725 |
Impairments and retirements | -2 | -6 | - | -2 | -10 |
Changes in consolidation1 | 3 | 20 | - | - | 23 |
Other | -2 | -18 | - | - | -20 |
Closing net book value | 371 | 5,681 | 23 | 144 | 6,219 |
Cost | 1,572 | 9,746 | 52 | 144 | 11,514 |
Accumulated depreciation/impairments | -1,202 | -4,065 | -29 | - | -5,295 |
Balance at 31 December 2024 | 371 | 5,681 | 23 | 144 | 6,219 |
Investments | 9 | 6 | 2 | 1,019 | 1,037 |
Transfers from AuC to other PPE | 58 | 908 | 9 | -974 | - |
Depreciation | -55 | -711 | -11 | - | -777 |
Impairments and retirements | -3 | -13 | - | -1 | -17 |
Changes in consolidation2 | 116 | - | 1 | -2 | 114 |
Other | 2 | 1 | - | -6 | -4 |
Closing net book value | 497 | 5,872 | 24 | 179 | 6,571 |
Cost | 1,710 | 10,283 | 56 | 179 | 12,228 |
Accumulated depreciation/impairments | -1,213 | -4,411 | -32 | - | -5,656 |
Balance at 31 December 2025 | 497 | 5,872 | 24 | 179 | 6,571 |
PPE category | Depreciation period |
|---|---|
Land | No depreciation |
Buildings | 14-33 years |
Network equipment | 3-7 years |
Fiber network infrastructure | 30 years |
Copper network infrastructure | 5-10 years |
Office equipment | 4-10 years |
The assets\u2019 residual values and useful lives are reviewed at least annually and adjusted if appropriate.
In early 2020, KPN announced its plans to phase out its copper network in early 2023. This applied to existing addresses where fiber service delivery has been available since early 2020, as well as to addresses included in fiber rollout projects that had already been announced and were under construction at that time. Together with the current fiber rollout, these overlay addresses receive an announcement that copper will be phased out after three years. The depreciation of this part of the copper network was accelerated for an additional amount of \u20ac2m in 2025 (2024: \u20ac2m).
PPE are depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. PPE are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the assets\u2019 book value exceeds their recoverable amount.
\u20ac\u00a0million | Goodwill | Customer relationships | Software | Software | Software | Licenses | Other | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 1,451 | 103 | 61 | 300 | 59 | 832 | 4 | 2,809 |
Investments | 135 | - | 1 | 2 | 246 | 60 | - | 445 |
Transfers from SiD to Software in use | - | - | 20 | 256 | -276 | - | - | - |
Changes in consolidation1 | -1 | 90 | - | - | - | - | 8 | 98 |
Amortization | - | -30 | -23 | -212 | - | -102 | - | -368 |
Impairments | - | -2 | - | -5 | - | - | - | -8 |
Reclassifications | - | -3 | -19 | 21 | -2 | - | - | -2 |
Closing net book value | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Cost | 2,243 | 383 | 92 | 704 | 28 | 1,839 | 23 | 5,311 |
Accumulated amortization/impairments | -657 | -225 | -53 | -343 | - | -1,048 | -11 | -2,336 |
Balance at 31 December 2024 | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Investments | 972 | - | 2 | 3 | 242 | - | - | 345 |
Transfers from SiD to Software in use | - | - | 22 | 212 | -234 | - | - | - |
Changes in consolidation3 | - | 153 | - | - | - | - | - | 153 |
Amortization | - | -36 | -22 | -230 | - | -104 | -1 | -392 |
Impairments | - | - | - | -3 | -1 | - | - | -4 |
Reclassifications | - | 5 | -1 | 1 | -1 | - | -5 | - |
Closing net book value | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Cost | 2,340 | 506 | 103 | 737 | 35 | 1,839 | 7 | 5,566 |
Accumulated amortization/impairments | -657 | -225 | -63 | -393 | - | -1,152 | -1 | -2,491 |
Balance at 31 December 2025 | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
\u20ac\u00a0million | Mobile network | Fixed network & data centers | Real estate | Vehicles | Other | Total |
|---|---|---|---|---|---|---|
Accumulated cost | 1,065 | 77 | 484 | 104 | 30 | 1,760 |
Accumulated depreciation & impairment | -485 | -64 | -332 | -53 | -11 | -945 |
Balance at 1 January 2024 | 580 | 13 | 152 | 51 | 19 | 815 |
Additions | 19 | - | 1 | 47 | 3 | 71 |
Remeasurement & lease modifications | -5 | - | 3 | -3 | 2 | -3 |
Change in consolidation | - | - | - | - | - | - |
Depreciation | -65 | -6 | -31 | -24 | -7 | -132 |
Impairments | - | - | - | - | - | - |
Closing net book value | 529 | 7 | 125 | 72 | 17 | 750 |
Accumulated cost | 1,051 | 37 | 484 | 121 | 34 | 1,727 |
Accumulated depreciation & impairment | -522 | -30 | -359 | -50 | -17 | -977 |
Balance at 31 December 2024 | 529 | 7 | 125 | 72 | 17 | 750 |
Additions | 10 | 0 | 4 | 15 | 14 | 43 |
Remeasurement & lease modifications | -631 | 1 | -11 | 1 | 1 | -71 |
Change in consolidation2 | 54 | - | - | - | - | 54 |
Depreciation | -53 | -3 | -30 | -23 | -8 | -117 |
Impairments | - | - | - | - | - | - |
Closing net book value | 476 | 6 | 89 | 64 | 24 | 659 |
Accumulated cost | 751 | 31 | 439 | 121 | 48 | 1,390 |
Accumulated depreciation & impairment | -276 | -25 | -349 | -57 | -24 | -731 |
Balance at 31 December 2025 | 476 | 6 | 89 | 64 | 24 | 659 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total estimated lease term at commencement of a lease (in years) | 5-15 | 5-20 | 5-20 | 5-7 | <5 | \u00a0 |
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Depreciation of right-of-use assets | -117 | -132 |
Impairment (-) or impairment reversal right-of-use assets | - | - |
Gain or loss (-) on early terminations | -381 | 2 |
Total depreciation & impairments presented in the P&L | -155 | -130 |
Interest on lease liabilities | -20 | -23 |
Total amount recognized in profit or loss | -175 | -153 |
The right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Right-of-use assets are subject to impairment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i8459": { "value": "\u20ac\u00a0million | Land and buildings | Plant and equipment | Other tangible non-current assets | Assets under construction | Total |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 361 | 5,312 | 24 | 247 | 5,943 |
Investments | 5 | 4 | 1 | 996 | 1,007 |
Transfers from AuC to other PPE | 46 | 1,044 | 8 | -1,098 | - |
Depreciation | -40 | -675 | -10 | - | -725 |
Impairments and retirements | -2 | -6 | - | -2 | -10 |
Changes in consolidation1 | 3 | 20 | - | - | 23 |
Other | -2 | -18 | - | - | -20 |
Closing net book value | 371 | 5,681 | 23 | 144 | 6,219 |
Cost | 1,572 | 9,746 | 52 | 144 | 11,514 |
Accumulated depreciation/impairments | -1,202 | -4,065 | -29 | - | -5,295 |
Balance at 31 December 2024 | 371 | 5,681 | 23 | 144 | 6,219 |
Investments | 9 | 6 | 2 | 1,019 | 1,037 |
Transfers from AuC to other PPE | 58 | 908 | 9 | -974 | - |
Depreciation | -55 | -711 | -11 | - | -777 |
Impairments and retirements | -3 | -13 | - | -1 | -17 |
Changes in consolidation2 | 116 | - | 1 | -2 | 114 |
Other | 2 | 1 | - | -6 | -4 |
Closing net book value | 497 | 5,872 | 24 | 179 | 6,571 |
Cost | 1,710 | 10,283 | 56 | 179 | 12,228 |
Accumulated depreciation/impairments | -1,213 | -4,411 | -32 | - | -5,656 |
Balance at 31 December 2025 | 497 | 5,872 | 24 | 179 | 6,571 |
Impairments of PPE are reversed if and to the extent that the reasons for previously recognized impairment losses no longer exist. The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value-in-use.
PPE are depreciated using the straight-line method, based on estimated useful life, taking into account residual value. Land is not depreciated. PPE are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the assets concerned may not be recoverable. An impairment loss is recognized for the amount by which the assets\u2019 book value exceeds their recoverable amount.
\u20ac\u00a0million | Goodwill | Customer relationships | Software | Software | Software | Licenses | Other | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 1,451 | 103 | 61 | 300 | 59 | 832 | 4 | 2,809 |
Investments | 135 | - | 1 | 2 | 246 | 60 | - | 445 |
Transfers from SiD to Software in use | - | - | 20 | 256 | -276 | - | - | - |
Changes in consolidation1 | -1 | 90 | - | - | - | - | 8 | 98 |
Amortization | - | -30 | -23 | -212 | - | -102 | - | -368 |
Impairments | - | -2 | - | -5 | - | - | - | -8 |
Reclassifications | - | -3 | -19 | 21 | -2 | - | - | -2 |
Closing net book value | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Cost | 2,243 | 383 | 92 | 704 | 28 | 1,839 | 23 | 5,311 |
Accumulated amortization/impairments | -657 | -225 | -53 | -343 | - | -1,048 | -11 | -2,336 |
Balance at 31 December 2024 | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Investments | 972 | - | 2 | 3 | 242 | - | - | 345 |
Transfers from SiD to Software in use | - | - | 22 | 212 | -234 | - | - | - |
Changes in consolidation3 | - | 153 | - | - | - | - | - | 153 |
Amortization | - | -36 | -22 | -230 | - | -104 | -1 | -392 |
Impairments | - | - | - | -3 | -1 | - | - | -4 |
Reclassifications | - | 5 | -1 | 1 | -1 | - | -5 | - |
Closing net book value | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Cost | 2,340 | 506 | 103 | 737 | 35 | 1,839 | 7 | 5,566 |
Accumulated amortization/impairments | -657 | -225 | -63 | -393 | - | -1,152 | -1 | -2,491 |
Balance at 31 December 2025 | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
In accordance with IAS 36, KPN assesses goodwill for impairment at the end of each year and when a triggering event occurs. The annual impairment tests at 31 December 2025 did not indicate that the book value of KPN\u2019s goodwill is not recoverable. KPN\u2019s market capitalization on 31 December 2025 was higher than the book value of its equity. A test was performed of the recoverable amount of the book value of each cash-generating unit (CGU), based on its value-in-use, which was determined by using the discounted cash flow method.
CGU | EBITDA | Capex | Discount | Terminal sales growth1 |
|---|---|---|---|---|
Consumer 2025 | 51% \u2013 54% | 18% \u2013 25% | 6% \u2013 7% | 2.0% |
Consumer 2024 | 52% \u2013 54% | 18% \u2013 27% | 6% \u2013 7% | 1.5% |
Business 2025 | 31% \u2013 33% | 12% \u2013 18% | 6% \u2013 7% | 2.0% |
Business 2024 | 32% \u2013 37% | 10% \u2013 15% | 6% \u2013 7% | 1.5% |
The EBITDA margins and capex intensity shown in the table above are the highest and lowest percentages used to determine the cash flows in the period up to 2035 and used to determine the terminal value. The wide variation in capex intensity is due to high levels of capex in the coming years related to the fiber rollout, which will be significantly lower after 2027. The discount rate shown in the table is the pre-tax weighted average cost of capital (WACC) used to determine the value-in-use.
The cash flow projections (including estimated EBITDA, capex, change in working capital) used to determine the value-in-use of each CGU are management\u2019s best estimate based on the updated strategic plan, which covers a five year period, followed by a five year extrapolation period and a terminal value for the years after 2035. During the extrapolation period, revenue growth is expected to develop linearly to the terminal growth rate used to calculate the terminal value and the EBITDA margin is kept stable. This forecast period is used because of the long investment cycles (in the telecommunications industry) and our investments planned. The focus is gradually shifting from laying the basic infrastructure, which will have a significantly smaller scale after 2027, to connecting and activating homes and offices, the effect of which will materialize after the five year planning period. Analyses of the forecasts and the actuals realized demonstrate that the forecasts were accurate in the past.
KPN has outlined a climate transition plan to address the impact of climate change and other sustainability topics on KPN's business model. For example, the demand for renewable energy exceeds supply, and energy storage technology is still developing. Limited power capacity and connections could lead to grid congestion, with the risk of disrupting KPN\u2019s networks and services through power outages. Climate change could lead to extreme weather events, such as flooding and heat stress, which could damage KPN's infrastructure and pose risks of temporary or long-term network disruptions.The climate transition plan is embedded in and aligned with KPN\u2019s overall business strategy. More specifically, it is linked to the financial and business planning of our Connect, Activate & Grow strategy and includes capex in the short and long term to, for example, mitigate the impact of climate change.
The WACC is calculated using a multi-factor pricing model. Long-term, backward looking data, provided by an independent valuation services provider, is used to determine the\u00a0equity risk premium (ERP) as input for the WACC calculation. This is based on a regular review of fluctuations in the eurozone\u2019s economic and financial market conditions, followed by periodic reassessment of the ERP. A size premium is included in the calculation of the WACC which is supported by empirical studies showing that smaller companies tend to have higher average rates of return compared with larger companies.
The terminal growth rate for the period after 10 years is updated consistently in line with realized growth and inflation expected in the long term and was 2.0% in 2025 and 1.5% in 2024 for both significant CGUs. To achieve this growth, additional capex is taken into account.
The annual impairment tests resulted in a positive headroom at 31 December 2025 and 31 December 2024.
The sensitivity analyses for both significant CGUs showed that a possible reasonable change in key assumptions would not lead to an impairment. This analysis was performed for each key assumption separately such as a 1% higher discount rate, a 20% higher capex, a 1% lower terminal growth rate or a 20% lower EBITDA. Furthemore, if the cash flow projections would be limited to the five year planning period, this would also not lead to a goodwill impairment for both significant CGUs.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i8657": { "value": "Asset retirement obligations are capitalized as part of the cost of tangible fixed assets and expensed as either depreciation over the assets\u2019 estimated useful life or as impairment charges.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i8660": { "value": "Impairments of PPE are reversed if and to the extent that the reasons for previously recognized impairment losses no longer exist. The recoverable amount is defined as the higher of an asset's fair value less costs of disposal and its value-in-use.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i9014": { "value": "\u20ac\u00a0million | Goodwill | Customer relationships | Software | Software | Software | Licenses | Other | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 1,451 | 103 | 61 | 300 | 59 | 832 | 4 | 2,809 |
Investments | 135 | - | 1 | 2 | 246 | 60 | - | 445 |
Transfers from SiD to Software in use | - | - | 20 | 256 | -276 | - | - | - |
Changes in consolidation1 | -1 | 90 | - | - | - | - | 8 | 98 |
Amortization | - | -30 | -23 | -212 | - | -102 | - | -368 |
Impairments | - | -2 | - | -5 | - | - | - | -8 |
Reclassifications | - | -3 | -19 | 21 | -2 | - | - | -2 |
Closing net book value | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Cost | 2,243 | 383 | 92 | 704 | 28 | 1,839 | 23 | 5,311 |
Accumulated amortization/impairments | -657 | -225 | -53 | -343 | - | -1,048 | -11 | -2,336 |
Balance at 31 December 2024 | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Investments | 972 | - | 2 | 3 | 242 | - | - | 345 |
Transfers from SiD to Software in use | - | - | 22 | 212 | -234 | - | - | - |
Changes in consolidation3 | - | 153 | - | - | - | - | - | 153 |
Amortization | - | -36 | -22 | -230 | - | -104 | -1 | -392 |
Impairments | - | - | - | -3 | -1 | - | - | -4 |
Reclassifications | - | 5 | -1 | 1 | -1 | - | -5 | - |
Closing net book value | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Cost | 2,340 | 506 | 103 | 737 | 35 | 1,839 | 7 | 5,566 |
Accumulated amortization/impairments | -657 | -225 | -63 | -393 | - | -1,152 | -1 | -2,491 |
Balance at 31 December 2025 | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Consumer | 924 | 888 |
Business | 677 | 662 |
Wholesale | 49 | 35 |
Althio | 32 | - |
Total | 1,683 | 1,585 |
Althio is not a separate segment but is part of the operating segment Networks, Operations &\u00a0IT (NOI).
NOI is treated as a cost center as its primary responsibility is the operation of KPN\u2019s mobile and fixed networks and to provide IT services. For goodwill impairment testing purposes, opex, capex and capital employed of NOI, as well as a small amount of external revenues, are allocated to KPN\u2019s customer-facing segments.
The purpose of the Althio acquisition was to obtain higher flexibility over a substantial part of KPN\u2019s mobile infrastructure. The majority of Althio\u2019s revenue is internal to KPN. Since Althio also independently generates external revenues, goodwill is allocated to this level and monitored for internal management purposes. KPN concluded that Althio must be treated as a separate CGU, as far as Althio\u2019s external revenues and external customer base are concerned.\u00a0An amount of \u20ac32m of the total amount of goodwill of \u20ac95m arising in the Althio acquisition (see Note 21) has been allocated to the Althio CGU. The remainder of the goodwill is allocated to the other CGUs based on the extent to which the CGUs are expected to benefit from the acquisition of Althio.
In accordance with IAS 36, KPN assesses goodwill for impairment at the end of each year and when a triggering event occurs. The annual impairment tests at 31 December 2025 did not indicate that the book value of KPN\u2019s goodwill is not recoverable. KPN\u2019s market capitalization on 31 December 2025 was higher than the book value of its equity. A test was performed of the recoverable amount of the book value of each cash-generating unit (CGU), based on its value-in-use, which was determined by using the discounted cash flow method.
The key assumptions used to determine the value-in-use for the significant CGUs are as follows:
CGU | EBITDA | Capex | Discount | Terminal sales growth1 |
|---|---|---|---|---|
Consumer 2025 | 51% \u2013 54% | 18% \u2013 25% | 6% \u2013 7% | 2.0% |
Consumer 2024 | 52% \u2013 54% | 18% \u2013 27% | 6% \u2013 7% | 1.5% |
Business 2025 | 31% \u2013 33% | 12% \u2013 18% | 6% \u2013 7% | 2.0% |
Business 2024 | 32% \u2013 37% | 10% \u2013 15% | 6% \u2013 7% | 1.5% |
The EBITDA margins and capex intensity shown in the table above are the highest and lowest percentages used to determine the cash flows in the period up to 2035 and used to determine the terminal value. The wide variation in capex intensity is due to high levels of capex in the coming years related to the fiber rollout, which will be significantly lower after 2027. The discount rate shown in the table is the pre-tax weighted average cost of capital (WACC) used to determine the value-in-use.
The cash flow projections (including estimated EBITDA, capex, change in working capital) used to determine the value-in-use of each CGU are management\u2019s best estimate based on the updated strategic plan, which covers a five year period, followed by a five year extrapolation period and a terminal value for the years after 2035. During the extrapolation period, revenue growth is expected to develop linearly to the terminal growth rate used to calculate the terminal value and the EBITDA margin is kept stable. This forecast period is used because of the long investment cycles (in the telecommunications industry) and our investments planned. The focus is gradually shifting from laying the basic infrastructure, which will have a significantly smaller scale after 2027, to connecting and activating homes and offices, the effect of which will materialize after the five year planning period. Analyses of the forecasts and the actuals realized demonstrate that the forecasts were accurate in the past.
KPN has outlined a climate transition plan to address the impact of climate change and other sustainability topics on KPN's business model. For example, the demand for renewable energy exceeds supply, and energy storage technology is still developing. Limited power capacity and connections could lead to grid congestion, with the risk of disrupting KPN\u2019s networks and services through power outages. Climate change could lead to extreme weather events, such as flooding and heat stress, which could damage KPN's infrastructure and pose risks of temporary or long-term network disruptions.The climate transition plan is embedded in and aligned with KPN\u2019s overall business strategy. More specifically, it is linked to the financial and business planning of our Connect, Activate & Grow strategy and includes capex in the short and long term to, for example, mitigate the impact of climate change.
The WACC is calculated using a multi-factor pricing model. Long-term, backward looking data, provided by an independent valuation services provider, is used to determine the\u00a0equity risk premium (ERP) as input for the WACC calculation. This is based on a regular review of fluctuations in the eurozone\u2019s economic and financial market conditions, followed by periodic reassessment of the ERP. A size premium is included in the calculation of the WACC which is supported by empirical studies showing that smaller companies tend to have higher average rates of return compared with larger companies.
The terminal growth rate for the period after 10 years is updated consistently in line with realized growth and inflation expected in the long term and was 2.0% in 2025 and 1.5% in 2024 for both significant CGUs. To achieve this growth, additional capex is taken into account.
The annual impairment tests resulted in a positive headroom at 31 December 2025 and 31 December 2024.
The sensitivity analyses for both significant CGUs showed that a possible reasonable change in key assumptions would not lead to an impairment. This analysis was performed for each key assumption separately such as a 1% higher discount rate, a 20% higher capex, a 1% lower terminal growth rate or a 20% lower EBITDA. Furthemore, if the cash flow projections would be limited to the five year planning period, this would also not lead to a goodwill impairment for both significant CGUs.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
\u20ac\u00a0million | Goodwill | Customer relationships | Software | Software | Software | Licenses | Other | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 1,451 | 103 | 61 | 300 | 59 | 832 | 4 | 2,809 |
Investments | 135 | - | 1 | 2 | 246 | 60 | - | 445 |
Transfers from SiD to Software in use | - | - | 20 | 256 | -276 | - | - | - |
Changes in consolidation1 | -1 | 90 | - | - | - | - | 8 | 98 |
Amortization | - | -30 | -23 | -212 | - | -102 | - | -368 |
Impairments | - | -2 | - | -5 | - | - | - | -8 |
Reclassifications | - | -3 | -19 | 21 | -2 | - | - | -2 |
Closing net book value | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Cost | 2,243 | 383 | 92 | 704 | 28 | 1,839 | 23 | 5,311 |
Accumulated amortization/impairments | -657 | -225 | -53 | -343 | - | -1,048 | -11 | -2,336 |
Balance at 31 December 2024 | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Investments | 972 | - | 2 | 3 | 242 | - | - | 345 |
Transfers from SiD to Software in use | - | - | 22 | 212 | -234 | - | - | - |
Changes in consolidation3 | - | 153 | - | - | - | - | - | 153 |
Amortization | - | -36 | -22 | -230 | - | -104 | -1 | -392 |
Impairments | - | - | - | -3 | -1 | - | - | -4 |
Reclassifications | - | 5 | -1 | 1 | -1 | - | -5 | - |
Closing net book value | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Cost | 2,340 | 506 | 103 | 737 | 35 | 1,839 | 7 | 5,566 |
Accumulated amortization/impairments | -657 | -225 | -63 | -393 | - | -1,152 | -1 | -2,491 |
Balance at 31 December 2025 | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Consumer | 924 | 888 |
Business | 677 | 662 |
Wholesale | 49 | 35 |
Althio | 32 | - |
Total | 1,683 | 1,585 |
Althio is not a separate segment but is part of the operating segment Networks, Operations &\u00a0IT (NOI).
NOI is treated as a cost center as its primary responsibility is the operation of KPN\u2019s mobile and fixed networks and to provide IT services. For goodwill impairment testing purposes, opex, capex and capital employed of NOI, as well as a small amount of external revenues, are allocated to KPN\u2019s customer-facing segments.
The purpose of the Althio acquisition was to obtain higher flexibility over a substantial part of KPN\u2019s mobile infrastructure. The majority of Althio\u2019s revenue is internal to KPN. Since Althio also independently generates external revenues, goodwill is allocated to this level and monitored for internal management purposes. KPN concluded that Althio must be treated as a separate CGU, as far as Althio\u2019s external revenues and external customer base are concerned.\u00a0An amount of \u20ac32m of the total amount of goodwill of \u20ac95m arising in the Althio acquisition (see Note 21) has been allocated to the Althio CGU. The remainder of the goodwill is allocated to the other CGUs based on the extent to which the CGUs are expected to benefit from the acquisition of Althio.
In accordance with IAS 36, KPN assesses goodwill for impairment at the end of each year and when a triggering event occurs. The annual impairment tests at 31 December 2025 did not indicate that the book value of KPN\u2019s goodwill is not recoverable. KPN\u2019s market capitalization on 31 December 2025 was higher than the book value of its equity. A test was performed of the recoverable amount of the book value of each cash-generating unit (CGU), based on its value-in-use, which was determined by using the discounted cash flow method.
CGU | EBITDA | Capex | Discount | Terminal sales growth1 |
|---|---|---|---|---|
Consumer 2025 | 51% \u2013 54% | 18% \u2013 25% | 6% \u2013 7% | 2.0% |
Consumer 2024 | 52% \u2013 54% | 18% \u2013 27% | 6% \u2013 7% | 1.5% |
Business 2025 | 31% \u2013 33% | 12% \u2013 18% | 6% \u2013 7% | 2.0% |
Business 2024 | 32% \u2013 37% | 10% \u2013 15% | 6% \u2013 7% | 1.5% |
The EBITDA margins and capex intensity shown in the table above are the highest and lowest percentages used to determine the cash flows in the period up to 2035 and used to determine the terminal value. The wide variation in capex intensity is due to high levels of capex in the coming years related to the fiber rollout, which will be significantly lower after 2027. The discount rate shown in the table is the pre-tax weighted average cost of capital (WACC) used to determine the value-in-use.
The cash flow projections (including estimated EBITDA, capex, change in working capital) used to determine the value-in-use of each CGU are management\u2019s best estimate based on the updated strategic plan, which covers a five year period, followed by a five year extrapolation period and a terminal value for the years after 2035. During the extrapolation period, revenue growth is expected to develop linearly to the terminal growth rate used to calculate the terminal value and the EBITDA margin is kept stable. This forecast period is used because of the long investment cycles (in the telecommunications industry) and our investments planned. The focus is gradually shifting from laying the basic infrastructure, which will have a significantly smaller scale after 2027, to connecting and activating homes and offices, the effect of which will materialize after the five year planning period. Analyses of the forecasts and the actuals realized demonstrate that the forecasts were accurate in the past.
KPN has outlined a climate transition plan to address the impact of climate change and other sustainability topics on KPN's business model. For example, the demand for renewable energy exceeds supply, and energy storage technology is still developing. Limited power capacity and connections could lead to grid congestion, with the risk of disrupting KPN\u2019s networks and services through power outages. Climate change could lead to extreme weather events, such as flooding and heat stress, which could damage KPN's infrastructure and pose risks of temporary or long-term network disruptions.The climate transition plan is embedded in and aligned with KPN\u2019s overall business strategy. More specifically, it is linked to the financial and business planning of our Connect, Activate & Grow strategy and includes capex in the short and long term to, for example, mitigate the impact of climate change.
The WACC is calculated using a multi-factor pricing model. Long-term, backward looking data, provided by an independent valuation services provider, is used to determine the\u00a0equity risk premium (ERP) as input for the WACC calculation. This is based on a regular review of fluctuations in the eurozone\u2019s economic and financial market conditions, followed by periodic reassessment of the ERP. A size premium is included in the calculation of the WACC which is supported by empirical studies showing that smaller companies tend to have higher average rates of return compared with larger companies.
The terminal growth rate for the period after 10 years is updated consistently in line with realized growth and inflation expected in the long term and was 2.0% in 2025 and 1.5% in 2024 for both significant CGUs. To achieve this growth, additional capex is taken into account.
The annual impairment tests resulted in a positive headroom at 31 December 2025 and 31 December 2024.
The sensitivity analyses for both significant CGUs showed that a possible reasonable change in key assumptions would not lead to an impairment. This analysis was performed for each key assumption separately such as a 1% higher discount rate, a 20% higher capex, a 1% lower terminal growth rate or a 20% lower EBITDA. Furthemore, if the cash flow projections would be limited to the five year planning period, this would also not lead to a goodwill impairment for both significant CGUs.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i8681": { "value": "\u20ac\u00a0million | Goodwill | Customer relationships | Software | Software | Software | Licenses | Other | Total |
|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 1,451 | 103 | 61 | 300 | 59 | 832 | 4 | 2,809 |
Investments | 135 | - | 1 | 2 | 246 | 60 | - | 445 |
Transfers from SiD to Software in use | - | - | 20 | 256 | -276 | - | - | - |
Changes in consolidation1 | -1 | 90 | - | - | - | - | 8 | 98 |
Amortization | - | -30 | -23 | -212 | - | -102 | - | -368 |
Impairments | - | -2 | - | -5 | - | - | - | -8 |
Reclassifications | - | -3 | -19 | 21 | -2 | - | - | -2 |
Closing net book value | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Cost | 2,243 | 383 | 92 | 704 | 28 | 1,839 | 23 | 5,311 |
Accumulated amortization/impairments | -657 | -225 | -53 | -343 | - | -1,048 | -11 | -2,336 |
Balance at 31 December 2024 | 1,585 | 158 | 39 | 361 | 28 | 791 | 11 | 2,974 |
Investments | 972 | - | 2 | 3 | 242 | - | - | 345 |
Transfers from SiD to Software in use | - | - | 22 | 212 | -234 | - | - | - |
Changes in consolidation3 | - | 153 | - | - | - | - | - | 153 |
Amortization | - | -36 | -22 | -230 | - | -104 | -1 | -392 |
Impairments | - | - | - | -3 | -1 | - | - | -4 |
Reclassifications | - | 5 | -1 | 1 | -1 | - | -5 | - |
Closing net book value | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Cost | 2,340 | 506 | 103 | 737 | 35 | 1,839 | 7 | 5,566 |
Accumulated amortization/impairments | -657 | -225 | -63 | -393 | - | -1,152 | -1 | -2,491 |
Balance at 31 December 2025 | 1,683 | 281 | 40 | 345 | 35 | 687 | 6 | 3,075 |
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "highlightblock-blocktag-i9044": { "value": "The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
KPN uses the acquisition method to account for business combinations. The consideration paid is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange.
Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date. When a business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in the P&L.
Contingent considerations are recognized at fair value at acquisition date and subsequent changes to the fair value are recognized in the P&L. Contingent considerations classified as equity are not remeasured and subsequent settlement is counted for within equity.
For each business combination, KPN elects to recognize any non-controlling interest in the acquiree either at fair value or at the proportionate share in the acquiree\u2019s net assets.
Acquisition-related costs are expensed as incurred.
The excess of the consideration paid, non-controlling interests recognized and the acquisition date fair value of any previous equity interests in the acquiree over the fair value of KPN\u2019s share of the net assets acquired is recorded as goodwill. If negative goodwill occurs (bargain purchase), the difference is recognized directly in the P&L.
The excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination is recorded as goodwill. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill is carried at cost less accumulated impairment losses and tested for impairment annually or whenever there is an indication that goodwill may be impaired. Goodwill is impaired if the recoverable amount is lower than the book value. The recoverable amount is defined as the higher of the fair value less costs of disposal and the value-in-use of the CGU concerned. Impairment losses on goodwill are not reversed if circumstances that triggered the impairment have changed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i9020": { "value": "Licenses and software are valued at cost less amortization and impairment. Amortization is calculated using the straight-line method over the economic useful life and commences at the date that services can be offered (available for use). Internally developed and acquired software which is not an integral part of PPE is capitalized on the basis of the costs incurred, which includes direct costs and directly attributable overhead costs incurred. Other intangible assets, such as customer relationships and trade names acquired in business combinations, are capitalized at their fair values at acquisition date and are amortized using the straight-line method over the economic useful life.
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. An impairment loss is recognized for the amount by which the book value of the intangible assets exceeds its recoverable amount. Impairments are reversed if and to the extent that the impairment no longer exists. Intangible assets not yet available for use are tested for impairment annually or whenever KPN has an indication that the intangible fixed assets may be impaired. For example, licenses are tested as part of a CGU as licenses do not generate independent cash flows.
The amortization periods of the intangible assets with finite lives are 5-20 years for licenses, 3-5 years for software and 4-20 years for other intangible assets, such as customer relationships.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i9185": { "value": "KPN holds several equity investments accounted for using the equity method of which Glaspoort (see below) is the most significant. Other equity investments, with a combined carrying value at 31 December 2025 of \u20ac25m (31 December 2024: \u20ac17m) and combined share in their net result of \u20ac3m in 2025 (2024: nil) are not material, either individually or in aggregate.
Glaspoort is a network company, pursuing an open-access wholesale strategy based on non-discriminatory terms, fostering competition and innovation in the Netherlands.
Glaspoort is classified as a joint venture based on the assessment of ownership and voting power (50/50) with the joint venture partner, Drepana Investment Holding B.V., and the joint control established through the joint venture agreement between the shareholders. The assessment includes the following:
KPN's option to purchase one additional share in Glaspoort. This option is exercisable between the 5th and the 8th anniversary of the transaction (9 June 2021) provided certain criteria are met, and in any case after the 8th anniversary.
KPN's influence on Glaspoort's relevant activities through KPN's presence in the governance structure. The annual budget and substantive reserved matters requires unanimous approval by KPN and Drepana.
KPN is the anchor tenant on Glaspoort's network and will also be one of its suppliers through a number of operational contracts between KPN and Glaspoort.
The assessment as to whether joint control remains in place is reviewed when relevant facts or circumstances change.
KPN accounts for its interest in Glaspoort using the equity method in the consolidated financial statements with initial recognition at fair value. The initial fair value has been allocated to the equity of Glaspoort, determined under application of KPN's accounting policies, and goodwill. In determining equity, intangible assets of \u20ac878m have been recognized in the initial balance sheet of Glaspoort, which mostly relate to contractual relationships held by Glaspoort with, among other players, KPN. These intangible assets are amortized over a period of 15 years based on the progress of the rollout. At 31 December 2025 these intangibles had a carrying value of \u20ac782m (31 December 2024: \u20ac813m).
In December 2021, KPN, Drepana and Glaspoort signed an agreement on the sale of additional fiber rollout projects by KPN to Glaspoort for a total consideration of \u20ac170m (pre-tax). KPN received an upfront payment of \u20ac60m in 2021 and the remainder is being paid in annual installments based on the progress of the rollout. At the start of the related project, KPN recognized 50% of the gain on the sale (as other income) and 50% was deferred following the requirements of IAS 28 for downstream transactions. At 31 December 2023, all projects had started so no other income was recognized in 2024 and 2025. At 31 December 2025, the deferred consideration to be received by KPN was \u20ac5m, the entire amount is current (31 December 2024: \u20ac28m, of which \u20ac23m current). The payments received are included in the cash flow from disposals of property, plant and equipment and intangible assets in the consolidated statement of cash flows (2025: \u20ac23m, 2024: \u20ac31m).
The deferred gains are deducted from the carrying amount of KPN\u2019s investment in Glaspoort (\u20ac70m at 31 December 2025 and \u20ac76m in 2024) and are recognized over time as part of the result from KPN\u2019s investment in Glaspoort (\u20ac4m in 2025 and \u20ac4m in 2024).\u00a0\u00a0
During 2025, Glaspoort received additional share premium contributions of \u20ac56m per shareholder based on the original agreements. In 2024 KPN and Drepana contributed \u20ac20m. KPN added the share premium payments to the carrying value of KPN's interest in the joint venture. Glaspoort used part of these contributions to finance its fiber rollout activities.
Summarized financial information on the joint venture, based on IFRS Accounting Standards as applied by KPN, and reconciliation with the carrying amount of the investment in the consolidated financial statements, is set out below.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Tangible fixed assets | 885 | 629 |
Intangible assets | 915 | 958 |
Right-of-use assets | 1 | 1 |
Equity investments | 101 | 98 |
Other non-current assets | 36 | 13 |
Current assets | 26 | 31 |
Net cash and cash equivalents | 10 | 5 |
Non-current liabilities | -631 | -428 |
Current liabilities | -58 | -97 |
Equity | 1,284 | 1,209 |
KPN's share in equity | 642 | 605 |
Goodwill from initial valuation at fair value | 15 | 15 |
Carrying amount of the investment (equity method) | 657 | 620 |
Less: Deferred gain on downstream transactions | -70 | -76 |
Carrying amount of the investment | 587 | 544 |
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Revenue | 78 | 53 |
Operating expenses | -33 | -22 |
Depreciation, amortization & impairment expenses | -69 | -50 |
Net finance result | -20 | -27 |
Result from joint ventures | -1 | -1 |
Result before tax | -46 | -47 |
Income tax expense | 8 | 10 |
Result for the year | -37 | -37 |
Total comprehensive income (loss) for the year | -37 | -37 |
KPN's share of result for the year | -19 | -19 |
Release deferred gain on downstream transactions (net of tax) | 4 | 4 |
KPN's total reported result from JV Glaspoort | -14 | -14 |
Both shareholders have committed to additional share premium contributions. On 31 December 2025, the remaining maximum commitment of each shareholder was \u20ac220m, payable to Glaspoort based on funding requirements following its annual budget (31 December 2024: \u20ac255m). Neither shareholder has additional funding obligations regarding Glaspoort. Glaspoort has entered into funding agreements with financial institutions to cover its financial commitments, which include its fiber rollout activities. These funding agreements have been entered into on a non-recourse basis without any guarantees from the shareholders.
For information on transactions between Glaspoort and KPN and unsettled positions between Glaspoort and KPN, see Note 23. Glaspoort may not distribute its profits without the consent of the two joint venture partners and not before 2026. After 2026, Glaspoort may distribute dividends only if specific criteria are met.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
During 2025 and 2024, no subsidiaries were sold.
On 9 June 2021, KPN sold 50% of the shares of its subsidiary Glaspoort and entered into a joint venture agreement with ABP (see Note 12). As of 9 June 2021, KPN's remaining 50% interest in Glaspoort is classified as a joint venture and accounted for using the equity method. KPN is the anchor tenant on Glaspoort's network and also supplies services to Glaspoort. In 2024, KPN and ABP agreed on an adjustment to the Glaspoort demarcation which was part of the joint venture agreement in 2021. The transaction is an exchange of geographical areas between KPN and Glaspoort, which will be used by KPN and Glaspoort for similar purposes and have comparable risk profiles and fair values. Other than the settlement of costs already incurred by KPN (\u20ac19m), there is no other financial compensation.\u00a0
The value of the services delivered to and acquired from Glaspoort, and its joint venture GlasDraad, amounted to \u20ac23m and \u20ac71m respectively in 2025 (2024: \u20ac17m and \u20ac49m respectively). Moreover, in December 2021, KPN, ABP and Glaspoort signed an agreement to extend the scope of Glaspoort's fiber rollout. It was agreed that KPN will receive \u20ac170m (pre-tax) from Glaspoort for the sale of the additional scope projects in annual installments based on the fiber rollout starting in 2023. At 31 December 2025, KPN had received \u20ac165m of the total consideration agreed upon (\u20ac60m in cash upon closing of the transaction in 2021, \u20ac51m during 2023, \u20ac31m during 2024 and \u20ac23m during 2025). During 2025, Glaspoort received additional share premium contributions from its shareholders. KPN contributed \u20ac56m (2024: \u20ac20m). Trade and other receivables with respect to Glaspoort at 31 December 2025 amounted to \u20ac5m (2024: \u20ac18m), trade and other payables to \u20ac9m (2024: \u20ac13m), non-current contract assets to nil (2024: \u20ac5m), and current contract assets to \u20ac5m (2024: \u20ac23m); there were no current contract liabilities.
The following table shows the total value of the transactions by KPN with other associated and non-consolidated companies for the relevant year:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Sales in the year | 3 | 14 |
Purchases in the year | 16 | 17 |
Trade receivables at 31 December | <1 | <1 |
Trade payables at 31 December | <1 | <1 |
Name of significant subsidiaries and other principal interests | Country of incorporation |
|---|---|
KPN B.V. | Netherlands |
- Althio B.V. | Netherlands |
- Broadband Hosting B.V. | Netherlands |
- E-Zorg B.V. | Netherlands |
- Glaspoort B.V. | Netherlands |
- GroupIT B.V. | Netherlands |
- RoutIT B.V. | Netherlands |
- Inspark Holding B.V. | Netherlands |
- InSpark B.V. | Netherlands |
- KPN Finance B.V. | Netherlands |
- Reggefiber Group B.V. | Netherlands |
- Reggefiber Operator B.V. | Netherlands |
- Reggefiber ttH B.V. | Netherlands |
- Netwerk Exploitatiemaatschappij B.V. | Netherlands |
- Solcon Internetdiensten B.V. | Netherlands |
- Youfone Nederland B.V. | Netherlands |
- Youfone Zakelijk B.V. | Netherlands |
KPN Mobile Holding B.V. | Netherlands |
- KPN Mobile N.V. | Netherlands |
KPN Ventures B.V. | Netherlands |
Getronics B.V. | Netherlands |
- Getronics Finance Holdings B.V. | Netherlands |
- Getronics Pensions UK Ltd. | UK |
- Getronics US Operations, Inc. | US |
KPN Insurance Company DAC | Ireland |
The percentage ownership/voting interest of these entities is 100%, except for:
Althio B.V. (51% interest)
Joint venture Glaspoort B.V. (50% interest)
KPN holds several equity investments accounted for using the equity method of which Glaspoort (see below) is the most significant. Other equity investments, with a combined carrying value at 31 December 2025 of \u20ac25m (31 December 2024: \u20ac17m) and combined share in their net result of \u20ac3m in 2025 (2024: nil) are not material, either individually or in aggregate.
Glaspoort is a network company, pursuing an open-access wholesale strategy based on non-discriminatory terms, fostering competition and innovation in the Netherlands.
Glaspoort is classified as a joint venture based on the assessment of ownership and voting power (50/50) with the joint venture partner, Drepana Investment Holding B.V., and the joint control established through the joint venture agreement between the shareholders. The assessment includes the following:
KPN's option to purchase one additional share in Glaspoort. This option is exercisable between the 5th and the 8th anniversary of the transaction (9 June 2021) provided certain criteria are met, and in any case after the 8th anniversary.
KPN's influence on Glaspoort's relevant activities through KPN's presence in the governance structure. The annual budget and substantive reserved matters requires unanimous approval by KPN and Drepana.
KPN is the anchor tenant on Glaspoort's network and will also be one of its suppliers through a number of operational contracts between KPN and Glaspoort.
The assessment as to whether joint control remains in place is reviewed when relevant facts or circumstances change.
KPN accounts for its interest in Glaspoort using the equity method in the consolidated financial statements with initial recognition at fair value. The initial fair value has been allocated to the equity of Glaspoort, determined under application of KPN's accounting policies, and goodwill. In determining equity, intangible assets of \u20ac878m have been recognized in the initial balance sheet of Glaspoort, which mostly relate to contractual relationships held by Glaspoort with, among other players, KPN. These intangible assets are amortized over a period of 15 years based on the progress of the rollout. At 31 December 2025 these intangibles had a carrying value of \u20ac782m (31 December 2024: \u20ac813m).
In December 2021, KPN, Drepana and Glaspoort signed an agreement on the sale of additional fiber rollout projects by KPN to Glaspoort for a total consideration of \u20ac170m (pre-tax). KPN received an upfront payment of \u20ac60m in 2021 and the remainder is being paid in annual installments based on the progress of the rollout. At the start of the related project, KPN recognized 50% of the gain on the sale (as other income) and 50% was deferred following the requirements of IAS 28 for downstream transactions. At 31 December 2023, all projects had started so no other income was recognized in 2024 and 2025. At 31 December 2025, the deferred consideration to be received by KPN was \u20ac5m, the entire amount is current (31 December 2024: \u20ac28m, of which \u20ac23m current). The payments received are included in the cash flow from disposals of property, plant and equipment and intangible assets in the consolidated statement of cash flows (2025: \u20ac23m, 2024: \u20ac31m).
The deferred gains are deducted from the carrying amount of KPN\u2019s investment in Glaspoort (\u20ac70m at 31 December 2025 and \u20ac76m in 2024) and are recognized over time as part of the result from KPN\u2019s investment in Glaspoort (\u20ac4m in 2025 and \u20ac4m in 2024).\u00a0\u00a0
During 2025, Glaspoort received additional share premium contributions of \u20ac56m per shareholder based on the original agreements. In 2024 KPN and Drepana contributed \u20ac20m. KPN added the share premium payments to the carrying value of KPN's interest in the joint venture. Glaspoort used part of these contributions to finance its fiber rollout activities.
Summarized financial information on the joint venture, based on IFRS Accounting Standards as applied by KPN, and reconciliation with the carrying amount of the investment in the consolidated financial statements, is set out below.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Tangible fixed assets | 885 | 629 |
Intangible assets | 915 | 958 |
Right-of-use assets | 1 | 1 |
Equity investments | 101 | 98 |
Other non-current assets | 36 | 13 |
Current assets | 26 | 31 |
Net cash and cash equivalents | 10 | 5 |
Non-current liabilities | -631 | -428 |
Current liabilities | -58 | -97 |
Equity | 1,284 | 1,209 |
KPN's share in equity | 642 | 605 |
Goodwill from initial valuation at fair value | 15 | 15 |
Carrying amount of the investment (equity method) | 657 | 620 |
Less: Deferred gain on downstream transactions | -70 | -76 |
Carrying amount of the investment | 587 | 544 |
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Revenue | 78 | 53 |
Operating expenses | -33 | -22 |
Depreciation, amortization & impairment expenses | -69 | -50 |
Net finance result | -20 | -27 |
Result from joint ventures | -1 | -1 |
Result before tax | -46 | -47 |
Income tax expense | 8 | 10 |
Result for the year | -37 | -37 |
Total comprehensive income (loss) for the year | -37 | -37 |
KPN's share of result for the year | -19 | -19 |
Release deferred gain on downstream transactions (net of tax) | 4 | 4 |
KPN's total reported result from JV Glaspoort | -14 | -14 |
Both shareholders have committed to additional share premium contributions. On 31 December 2025, the remaining maximum commitment of each shareholder was \u20ac220m, payable to Glaspoort based on funding requirements following its annual budget (31 December 2024: \u20ac255m). Neither shareholder has additional funding obligations regarding Glaspoort. Glaspoort has entered into funding agreements with financial institutions to cover its financial commitments, which include its fiber rollout activities. These funding agreements have been entered into on a non-recourse basis without any guarantees from the shareholders.
For information on transactions between Glaspoort and KPN and unsettled positions between Glaspoort and KPN, see Note 23. Glaspoort may not distribute its profits without the consent of the two joint venture partners and not before 2026. After 2026, Glaspoort may distribute dividends only if specific criteria are met.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
On 9 June 2021, KPN sold 50% of the shares of its subsidiary Glaspoort and entered into a joint venture agreement with ABP (see Note 12). As of 9 June 2021, KPN's remaining 50% interest in Glaspoort is classified as a joint venture and accounted for using the equity method. KPN is the anchor tenant on Glaspoort's network and also supplies services to Glaspoort. In 2024, KPN and ABP agreed on an adjustment to the Glaspoort demarcation which was part of the joint venture agreement in 2021. The transaction is an exchange of geographical areas between KPN and Glaspoort, which will be used by KPN and Glaspoort for similar purposes and have comparable risk profiles and fair values. Other than the settlement of costs already incurred by KPN (\u20ac19m), there is no other financial compensation.\u00a0
The value of the services delivered to and acquired from Glaspoort, and its joint venture GlasDraad, amounted to \u20ac23m and \u20ac71m respectively in 2025 (2024: \u20ac17m and \u20ac49m respectively). Moreover, in December 2021, KPN, ABP and Glaspoort signed an agreement to extend the scope of Glaspoort's fiber rollout. It was agreed that KPN will receive \u20ac170m (pre-tax) from Glaspoort for the sale of the additional scope projects in annual installments based on the fiber rollout starting in 2023. At 31 December 2025, KPN had received \u20ac165m of the total consideration agreed upon (\u20ac60m in cash upon closing of the transaction in 2021, \u20ac51m during 2023, \u20ac31m during 2024 and \u20ac23m during 2025). During 2025, Glaspoort received additional share premium contributions from its shareholders. KPN contributed \u20ac56m (2024: \u20ac20m). Trade and other receivables with respect to Glaspoort at 31 December 2025 amounted to \u20ac5m (2024: \u20ac18m), trade and other payables to \u20ac9m (2024: \u20ac13m), non-current contract assets to nil (2024: \u20ac5m), and current contract assets to \u20ac5m (2024: \u20ac23m); there were no current contract liabilities.
The following table shows the total value of the transactions by KPN with other associated and non-consolidated companies for the relevant year:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Sales in the year | 3 | 14 |
Purchases in the year | 16 | 17 |
Trade receivables at 31 December | <1 | <1 |
Trade payables at 31 December | <1 | <1 |
KPN holds several equity investments accounted for using the equity method of which Glaspoort (see below) is the most significant. Other equity investments, with a combined carrying value at 31 December 2025 of \u20ac25m (31 December 2024: \u20ac17m) and combined share in their net result of \u20ac3m in 2025 (2024: nil) are not material, either individually or in aggregate.
Glaspoort is a network company, pursuing an open-access wholesale strategy based on non-discriminatory terms, fostering competition and innovation in the Netherlands.
Glaspoort is classified as a joint venture based on the assessment of ownership and voting power (50/50) with the joint venture partner, Drepana Investment Holding B.V., and the joint control established through the joint venture agreement between the shareholders. The assessment includes the following:
KPN's option to purchase one additional share in Glaspoort. This option is exercisable between the 5th and the 8th anniversary of the transaction (9 June 2021) provided certain criteria are met, and in any case after the 8th anniversary.
KPN's influence on Glaspoort's relevant activities through KPN's presence in the governance structure. The annual budget and substantive reserved matters requires unanimous approval by KPN and Drepana.
KPN is the anchor tenant on Glaspoort's network and will also be one of its suppliers through a number of operational contracts between KPN and Glaspoort.
The assessment as to whether joint control remains in place is reviewed when relevant facts or circumstances change.
KPN accounts for its interest in Glaspoort using the equity method in the consolidated financial statements with initial recognition at fair value. The initial fair value has been allocated to the equity of Glaspoort, determined under application of KPN's accounting policies, and goodwill. In determining equity, intangible assets of \u20ac878m have been recognized in the initial balance sheet of Glaspoort, which mostly relate to contractual relationships held by Glaspoort with, among other players, KPN. These intangible assets are amortized over a period of 15 years based on the progress of the rollout. At 31 December 2025 these intangibles had a carrying value of \u20ac782m (31 December 2024: \u20ac813m).
In December 2021, KPN, Drepana and Glaspoort signed an agreement on the sale of additional fiber rollout projects by KPN to Glaspoort for a total consideration of \u20ac170m (pre-tax). KPN received an upfront payment of \u20ac60m in 2021 and the remainder is being paid in annual installments based on the progress of the rollout. At the start of the related project, KPN recognized 50% of the gain on the sale (as other income) and 50% was deferred following the requirements of IAS 28 for downstream transactions. At 31 December 2023, all projects had started so no other income was recognized in 2024 and 2025. At 31 December 2025, the deferred consideration to be received by KPN was \u20ac5m, the entire amount is current (31 December 2024: \u20ac28m, of which \u20ac23m current). The payments received are included in the cash flow from disposals of property, plant and equipment and intangible assets in the consolidated statement of cash flows (2025: \u20ac23m, 2024: \u20ac31m).
The deferred gains are deducted from the carrying amount of KPN\u2019s investment in Glaspoort (\u20ac70m at 31 December 2025 and \u20ac76m in 2024) and are recognized over time as part of the result from KPN\u2019s investment in Glaspoort (\u20ac4m in 2025 and \u20ac4m in 2024).\u00a0\u00a0
During 2025, Glaspoort received additional share premium contributions of \u20ac56m per shareholder based on the original agreements. In 2024 KPN and Drepana contributed \u20ac20m. KPN added the share premium payments to the carrying value of KPN's interest in the joint venture. Glaspoort used part of these contributions to finance its fiber rollout activities.
Summarized financial information on the joint venture, based on IFRS Accounting Standards as applied by KPN, and reconciliation with the carrying amount of the investment in the consolidated financial statements, is set out below.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Tangible fixed assets | 885 | 629 |
Intangible assets | 915 | 958 |
Right-of-use assets | 1 | 1 |
Equity investments | 101 | 98 |
Other non-current assets | 36 | 13 |
Current assets | 26 | 31 |
Net cash and cash equivalents | 10 | 5 |
Non-current liabilities | -631 | -428 |
Current liabilities | -58 | -97 |
Equity | 1,284 | 1,209 |
KPN's share in equity | 642 | 605 |
Goodwill from initial valuation at fair value | 15 | 15 |
Carrying amount of the investment (equity method) | 657 | 620 |
Less: Deferred gain on downstream transactions | -70 | -76 |
Carrying amount of the investment | 587 | 544 |
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Revenue | 78 | 53 |
Operating expenses | -33 | -22 |
Depreciation, amortization & impairment expenses | -69 | -50 |
Net finance result | -20 | -27 |
Result from joint ventures | -1 | -1 |
Result before tax | -46 | -47 |
Income tax expense | 8 | 10 |
Result for the year | -37 | -37 |
Total comprehensive income (loss) for the year | -37 | -37 |
KPN's share of result for the year | -19 | -19 |
Release deferred gain on downstream transactions (net of tax) | 4 | 4 |
KPN's total reported result from JV Glaspoort | -14 | -14 |
Both shareholders have committed to additional share premium contributions. On 31 December 2025, the remaining maximum commitment of each shareholder was \u20ac220m, payable to Glaspoort based on funding requirements following its annual budget (31 December 2024: \u20ac255m). Neither shareholder has additional funding obligations regarding Glaspoort. Glaspoort has entered into funding agreements with financial institutions to cover its financial commitments, which include its fiber rollout activities. These funding agreements have been entered into on a non-recourse basis without any guarantees from the shareholders.
For information on transactions between Glaspoort and KPN and unsettled positions between Glaspoort and KPN, see Note 23. Glaspoort may not distribute its profits without the consent of the two joint venture partners and not before 2026. After 2026, Glaspoort may distribute dividends only if specific criteria are met.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
On 9 June 2021, KPN sold 50% of the shares of its subsidiary Glaspoort and entered into a joint venture agreement with ABP (see Note 12). As of 9 June 2021, KPN's remaining 50% interest in Glaspoort is classified as a joint venture and accounted for using the equity method. KPN is the anchor tenant on Glaspoort's network and also supplies services to Glaspoort. In 2024, KPN and ABP agreed on an adjustment to the Glaspoort demarcation which was part of the joint venture agreement in 2021. The transaction is an exchange of geographical areas between KPN and Glaspoort, which will be used by KPN and Glaspoort for similar purposes and have comparable risk profiles and fair values. Other than the settlement of costs already incurred by KPN (\u20ac19m), there is no other financial compensation.\u00a0
The value of the services delivered to and acquired from Glaspoort, and its joint venture GlasDraad, amounted to \u20ac23m and \u20ac71m respectively in 2025 (2024: \u20ac17m and \u20ac49m respectively). Moreover, in December 2021, KPN, ABP and Glaspoort signed an agreement to extend the scope of Glaspoort's fiber rollout. It was agreed that KPN will receive \u20ac170m (pre-tax) from Glaspoort for the sale of the additional scope projects in annual installments based on the fiber rollout starting in 2023. At 31 December 2025, KPN had received \u20ac165m of the total consideration agreed upon (\u20ac60m in cash upon closing of the transaction in 2021, \u20ac51m during 2023, \u20ac31m during 2024 and \u20ac23m during 2025). During 2025, Glaspoort received additional share premium contributions from its shareholders. KPN contributed \u20ac56m (2024: \u20ac20m). Trade and other receivables with respect to Glaspoort at 31 December 2025 amounted to \u20ac5m (2024: \u20ac18m), trade and other payables to \u20ac9m (2024: \u20ac13m), non-current contract assets to nil (2024: \u20ac5m), and current contract assets to \u20ac5m (2024: \u20ac23m); there were no current contract liabilities.
The following table shows the total value of the transactions by KPN with other associated and non-consolidated companies for the relevant year:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Sales in the year | 3 | 14 |
Purchases in the year | 16 | 17 |
Trade receivables at 31 December | <1 | <1 |
Trade payables at 31 December | <1 | <1 |
KPN holds several equity investments accounted for using the equity method of which Glaspoort (see below) is the most significant. Other equity investments, with a combined carrying value at 31 December 2025 of \u20ac25m (31 December 2024: \u20ac17m) and combined share in their net result of \u20ac3m in 2025 (2024: nil) are not material, either individually or in aggregate.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
The following table shows the total value of the transactions by KPN with other associated and non-consolidated companies for the relevant year:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Sales in the year | 3 | 14 |
Purchases in the year | 16 | 17 |
Trade receivables at 31 December | <1 | <1 |
Trade payables at 31 December | <1 | <1 |
Both shareholders have committed to additional share premium contributions. On 31 December 2025, the remaining maximum commitment of each shareholder was \u20ac220m, payable to Glaspoort based on funding requirements following its annual budget (31 December 2024: \u20ac255m). Neither shareholder has additional funding obligations regarding Glaspoort. Glaspoort has entered into funding agreements with financial institutions to cover its financial commitments, which include its fiber rollout activities. These funding agreements have been entered into on a non-recourse basis without any guarantees from the shareholders.
\u20ac\u00a0million | Less than 1 year | 1-5 years | More than 5 years | Total 31 December 2025 | Total 31 December 2024 |
|---|---|---|---|---|---|
Capital and purchase commitments | 878 | 538 | 40 | 1,456 | 1,672 |
Guarantees and other | - | 10 | 124 | 134 | 139 |
Total commitments | 878 | 548 | 164 | 1,590 | 1,811 |
The capital and purchase commitments mainly relate to minimum contractual obligations with regard to network operations, mobile handsets, telco services and lease contracts that have not yet commenced.
Guarantees consist of financial obligations of group companies under certain contracts guaranteed by KPN. A total amount of \u20ac124m relates to parent guarantees (2024: \u20ac134m). The table presented above does not include KPN's commitment on share premium contributions regarding Glaspoort of \u20ac220m (31 December 2024: \u20ac255m). See Note 12.
KPN is involved in a number of legal and tax proceedings that have arisen in the ordinary course of its business and in discontinued operations, including commercial, regulatory and other proceedings. Periodically, KPN carefully assesses the likelihood that legal and tax proceedings may lead to a cash in- or outflow. KPN recognizes provisions in case of a cash outflow if and when the chance is estimated as probable and a reliable estimate of the cash outflow can be made. KPN recognizes the assets in case of a cash inflow if and when the chance is estimated as virtually certain. When these criteria are not met, such matters are classified as contingent assets or liabilities, unless the cash inflow is considered possible or the cash outflow is considered remote.
However, the outcome of such proceedings can be difficult to predict with certainty and KPN can offer no assurances. In some cases, the impact of a legal proceeding may be more strategic than financial or such impact cannot properly be quantified. A description is given below of legal-related contingent assets and liabilities that could have a material impact for KPN.
See Note 18 for a contingent liability related to idle cables and the accounting policy for provisions.
A pending claim by a customer regarding the validity of certain clauses in our general terms & conditions for consumers could impact our ability to amend our tariffs for consumers, potentially also with retroactive effect.
In KPN\u2019s Articles of Association and in a further decision by the Board of Management, which was approved by the Supervisory Board, KPN has indemnified the members and former members of KPN\u2019s Board of Management and Supervisory Board, as well as a number of KPN\u2019s officers and directors and former officers and directors, against liabilities, claims, judgements, fines and penalties incurred by such officers or directors as a result of any threatened, pending or completed action, investigation or proceeding (whether civil, criminal or administrative) brought by a third party in relation to acts or omissions in or related to their capacity as officer or director. The indemnification does not apply to claims and expenses reimbursed by insurers nor to an officer or a director adjudged to be liable for willful misconduct (\"opzet\") or intentional recklessness (\"bewuste roekeloosheid\").
Both shareholders have committed to additional share premium contributions. On 31 December 2025, the remaining maximum commitment of each shareholder was \u20ac220m, payable to Glaspoort based on funding requirements following its annual budget (31 December 2024: \u20ac255m). Neither shareholder has additional funding obligations regarding Glaspoort. Glaspoort has entered into funding agreements with financial institutions to cover its financial commitments, which include its fiber rollout activities. These funding agreements have been entered into on a non-recourse basis without any guarantees from the shareholders.
\u20ac\u00a0million | Less than 1 year | 1-5 years | More than 5 years | Total 31 December 2025 | Total 31 December 2024 |
|---|---|---|---|---|---|
Capital and purchase commitments | 878 | 538 | 40 | 1,456 | 1,672 |
Guarantees and other | - | 10 | 124 | 134 | 139 |
Total commitments | 878 | 548 | 164 | 1,590 | 1,811 |
The capital and purchase commitments mainly relate to minimum contractual obligations with regard to network operations, mobile handsets, telco services and lease contracts that have not yet commenced.
Guarantees consist of financial obligations of group companies under certain contracts guaranteed by KPN. A total amount of \u20ac124m relates to parent guarantees (2024: \u20ac134m). The table presented above does not include KPN's commitment on share premium contributions regarding Glaspoort of \u20ac220m (31 December 2024: \u20ac255m). See Note 12.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "highlightblock-blocktag-i9180": { "value": "Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
Equity investments accounted for using the equity method include associates and joint ventures.
Associates are entities over which KPN has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries.
Investments in associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in KPN\u2019s share in the net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects KPN\u2019s share in the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of KPN\u2019s OCI. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, KPN recognizes its share of any change, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between KPN and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture through KPN's share in the profit (or loss) of the associate or joint venture.
The aggregate of KPN\u2019s share of profit or loss of an associate and a joint venture is shown in the statement of profit or loss.
The financial statements of the associate or joint venture are prepared for the same reporting period as KPN's. When necessary, adjustments are made to bring the accounting policies in line with those of KPN.
After application of the equity method, KPN determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. At each reporting date, KPN determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, KPN calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, and then recognizes the loss within \"Share of profit/loss (-) of associates and joint ventures\" in the statement of profit or loss.
Upon loss of significant influence over the associate or joint control over the joint venture, KPN measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control, and the fair value of the retained investment and proceeds from disposal, is recognized in profit or loss.
| \u00a0 | \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|---|
\u20ac\u00a0million | Notes | Carrying amount | Fair value | Carrying amount | Fair value |
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | [13.1] | 118 | 118 | 155 | 155 |
Other current financial assets | [13.1] | 147 | 147 | 100 | 100 |
Derivatives | [13.3] | 40 | 40 | 101 | 101 |
Cash and cash equivalents | [15] | 405 | 405 | 662 | 662 |
Financial assets at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables1 | [14.1] | 440 | 440 | 464 | 464 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | [14.1] | 108 | 108 | 82 | 82 |
Equity investments | [13.1] | 123 | 123 | 119 | 119 |
Total financial assets | \u00a0 | 1,382 | 1,382 | 1,683 | 1,683 |
Financial liabilities FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 1,177 | 1,170 | 1,796 | 1,779 |
Derivatives | [13.3] | 136 | 136 | 161 | 161 |
Financial liabilities at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 5,100 | 5,126 | 4,483 | 4,523 |
Trade and other payables3 | [20] | 1,173 | 1,173 | 1,076 | 1,076 |
Total financial liabilities4 | \u00a0 | 7,586 | 7,605 | 7,515 | 7,539 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 118 | 118 |
Other current financial assets | 147 | - | - | 147 |
Derivatives (cross-currency interest rate swap) | - | 40 | - | 40 |
Derivatives (interest rate swap) and other | - | - | - | - |
Cash and cash equivalents | 405 | - | - | 405 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 108 | - | 108 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 123 | 123 |
Total assets | 552 | 148 | 242 | 941 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,170 | - | - | 1,170 |
Derivatives (cross-currency interest rate swap) | - | 42 | - | 42 |
Derivatives (interest rate swap) | - | 93 | - | 93 |
Total liabilities | 1,170 | 136 | - | 1,306 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 155 | 155 |
Other current financial assets | 100 | - | - | 100 |
Derivatives (cross-currency interest rate swap) | - | 96 | - | 96 |
Derivatives (interest rate swap) and other | - | 5 | - | 5 |
Cash and cash equivalents | 662 | - | - | 662 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 82 | - | 82 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 119 | 119 |
Total assets | 762 | 183 | 274 | 1,219 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,779 | - | - | 1,779 |
Derivatives (cross-currency interest rate swap) | - | 20 | - | 20 |
Derivatives (interest rate swap) | - | 142 | - | 142 |
Total liabilities | 1,779 | 161 | - | 1,941 |
Level 1: Fair value of instruments traded in active markets and based on quoted market prices.
Level 2: Instrument is not traded in an active market and fair value is determined by using valuation techniques based on maximum use of observable market data for all significant inputs.
Level 3: One or more of the significant inputs are not based on observable market data; the fair value is estimated using models and other valuation methods.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
Upon the sale in 2021 of the 50% interest in Glaspoort to Drepana Investments Holding, KPN received a cash consideration upon deal close of \u20ac233m and a contingent cash receivable of \u20ac234m. The contingent cash receivable, to be received in annual installments based on Glaspoort's rollout progress, is classified as a financial asset measured at fair value through profit or loss. The contingent cash receivable was initially valued at \u20ac218m. At 31 December 2025, the carrying value was \u20ac118m (2024: \u20ac155m), of which \u20ac34m current (2024: \u20ac40m). In 2025, the book value was increased by \u20ac6m interest (2024: \u20ac8m) and decreased by \u20ac41m (2024: \u20ac26m) due to received payment. The fair value adjustment was \u20ac2m loss (2024: nil). Both interest and fair value adjustment were recognized in other financial results in 2025.
Based on Glaspoort's current rollout plan, KPN expects the final payment in 2029. The fair value of this contingent receivable is deemed equal to the net present value of the full amount of the installments to be received according to the expected rollout schedule as included in Glaspoort's most recent business plan. A weighted average discount rate of 4.9% has been used based on the following elements:
A base-rate using mid-swap rates to account for the time value of money, plus;
A credit spread mark-up to account for the risk of non-payment based on AA-rated credit curves resulting in a weighted average spread of ~0.2% over a 3-year tenor, plus;
A mark-up to reflect the rollout risk (mostly the risk of delay).
A 50 basis points increase (decrease) in the discount rate would lead to a \u20ac0.6m decrease (increase) in the carrying value at 31 December 2025.\u00a0
This includes several minority stakes, mainly of KPN Ventures, of which the largest is Smart Photonics Holding B.V., a foundry offering production services for indium phosphide based photonic components with a carrying value of \u20ac14m (2024: \u20ac3m). In addition, this includes an investment in the Townsend Real Estate Fund acquired in 2024 from the Getronics US pension fund (see Note 17). KPN elected fair value through OCI for these equity instruments that are not held for trading.
The fair value of KPN Ventures' equity investments is based, where applicable, on the price of the last fundraising round of the equity investment, investment valuations or the bid made in mergers and acquisitions transactions. These equity investments are direct and indirect investments in innovative technology companies that are in the start-up or scale-up phase and whose fair value may have a dynamic nature. The investment valuations take into account forward-looking estimates and judgements about the underlying business, market conditions and other factors.
The fair value of the investment in the Townsend Real Estate Fund (TREF) is based on the most recent available net asset value as reported by TREF less a discount for lack of liquidity.
Movement schedule of the equity investments measured at fair value through OCI
\u20ac\u00a0million | Equity investments measured at FVOCI |
|---|---|
Balance at 1 January 2024 | 90 |
Additions | 28 |
Disposals | -1 |
Remeasurements recognized in OCI | 2 |
Balance at 31 December 2024 | 119 |
Additions | 15 |
Disposals | -2 |
Redemptions | -5 |
Remeasurements recognized in OCI | -3 |
Other changes | -1 |
Balance at 31 December 2025 | 123 |
Other current financial assets include investments in short-term money market funds of \u20ac147m (2024: \u20ac100m), which are held at fair value through profit or loss (FVPL). These funds have a low volatility, with an investment objective of preservation of principal. Fair value is based on quoted market prices.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
Following the transaction resulting in the creation of Althio B.V. on 13 February 2025, KPN consolidated Althio\u2019s outstanding \u20ac200m term loan as part of other borrowings, with a carrying value of \u20ac196m.
On 17 February 2025, KPN issued a \u20ac800m 3.375% senior bond maturing on 17 February 2035.
On 9 April 2025, KPN redeemed a \u20ac625m 0.625% senior bond at its scheduled maturity date. This bond had been swapped to a fixed interest of 3.524%.
KPN\u2019s weighted average interest rate on total outstanding borrowings including the perpetual hybrid bonds (classified as equity) on 31 December 2025 was 3.8% after swaps (2024: 4.0%). KPN's weighted average interest rate on senior debt on 31 December 2025 was 3.5% after swaps (2024: 3.8%).
million | Nominal | Carrying amount \u20ac | Nominal after swap \u20ac | Number of bonds |
|---|---|---|---|---|
Senior bonds EUR denominated | 4,325 | 4,154 | 4,325 | 6 |
Senior bonds GBP denominated | 800 | 914 | 941 | 2 |
Senior bonds USD denominated | 595 | 554 | 450 | 1 |
KPN has an unlimited Global Medium-Term Notes program which is used to meet medium- to long-term funding requirements. As at 31 December 2025, the total amounts outstanding under this program were \u20ac4,325m across six bonds (carrying value \u20ac4,154m) and \u00a3800m across two bonds (carrying value \u20ac914m, swapped to \u20ac941m nominal). In addition, KPN has a senior global bond with $595m outstanding (carrying value \u20ac554m, swapped to \u20ac450m nominal) which was issued under standalone documentation.
\u20ac\u00a0million | Nominal | Coupon | Classification | Final maturity | First reset date | Credit rating1 |
|---|---|---|---|---|---|---|
EUR perpetual hybrid bond | 500 | 6,000% | Equity | Perpetual | 21 Dec 20272 | BB+/BB+ |
EUR perpetual hybrid bond | 500 | 4,875% | Equity | Perpetual | 18 Sep 20293 | BB+/BB+ |
At 31 December 2025, two hybrid bonds were outstanding with an aggregate nominal amount of \u20ac1,000m. These hybrid bonds are classified as equity under IFRS Accounting Standards and are assigned 50% equity content by credit rating agencies. These bonds are therefore treated 50% as equity and 50% as debt in KPN\u2019s gross and net debt definitions.
KPN may, at its discretion and subject to certain conditions, elect to defer payments of interest on the hybrid bonds. Arrears of interest must be paid if dividends are paid on ordinary shares, if payments are made on other hybrid bonds or in the event of early redemption. KPN does not recognize accruals for coupon payments on the perpetual hybrid bonds of \u20ac54m per annum. If an accrual had been recognized, the amount would have been \u20ac8m on 31 December 2025 (2024: \u20ac12m).
KPN has a euro-commercial paper program under which KPN can issue short-term debt instruments for up to \u20ac1,000m gross notional outstanding. At 31 December 2025, the outstanding balance of commercial paper amounted to \u20ac60m (2024: \u20ac60m), issued at an interest rate of 2.10% (2024: 3.06%).
On 31 December 2025, KPN had \u20ac300m outstanding under a credit facility from the European Investment Bank. This loan has a floating interest rate referenced to 3-month Euribor and a single repayment on 2 August 2027. The interest for the current interest period was fixed at 2.49% per annum.
At 31 December 2025, other borrowings also included Althio's \u20ac196m term loan, \u20ac51m in collateral received as security under derivative financial instruments and \u20ac49m in borrowings under private placements.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
\u20ac\u00a0million | Borrowings | Derivative financial instruments | Net liability | Lease liabilities | Net liability, including lease liabilities |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 5,894 | 184 | 6,078 | 894 | 6,972 |
Exchange differences | 87 | -90 | -4 | - | -4 |
Fair value adjustments | 26 | - | 26 | - | 26 |
Other changes1 | 504 | - | 504 | 67 | 571 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -955 | -33 | -988 | -143 | -1,131 |
Repurchase of perpetual hybrid bonds | -277 | - | -277 | - | -277 |
Issued bonds & loans | 996 | - | 996 | - | 996 |
Net receipts (payments) cash collateral | 5 | - | 5 | - | 5 |
Balance at 31 December 2024 | 6,279 | 60 | 6,339 | 818 | 7,157 |
Exchange differences | -113 | 114 | 1 | - | 1 |
Fair value adjustments | -8 | -27 | -35 | - | -35 |
Changes in consolidation3 | 113 | - | 113 | 54 | 167 |
Other changes1 | 7 | -7 | - | -38 | -39 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -960 | -46 | -1,006 | -127 | -1,133 |
Issued bonds & loans | 793 | - | 793 | - | 793 |
Bank loan | 196 | - | 196 | - | 196 |
Net receipts (payments) cash collateral | -28 | - | -28 | - | -28 |
Balance at 31 December 2025 | 6,277 | 95 | 6,372 | 707 | 7,079 |
KPN uses derivatives solely for the purpose of hedging underlying exposures. The primary risks managed using derivative instruments are foreign currency risk and interest rate risk.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Assets (current and non-current) | 40 | 101 |
Liabilities (current and non-current) | -136 | -161 |
Total derivatives | -95 | -61 |
of which: designated in a hedge relationship | -96 | -61 |
of which: other derivatives not designated in a hedge relationship | - | - |
A total loss of \u20ac8m due to hedge ineffectiveness was recognized in the P&L in 2025 (2024: \u20ac7m loss). This was mainly due to differences in the valuation of hedging instruments and hedged items due to credit risk and valuation curves in combination with the cumulative change in the fair value of the hedging instrument becoming greater than the change in the fair value of the hedged item. All hedges continue to be highly effective prospectively.
Derivatives positions are reported on a gross basis and include a credit value adjustment attributable to derivative counterparty default risk. At 31 December 2025, the cumulative credit value adjustment amounted to a \u20ac1m net asset (2024: \u20ac2m net asset). The change in the credit value adjustment was primarily driven by the change in the mark-to-market value of interest rate swaps and changes in the CDS curves of counterparties. Part of the derivatives portfolio is subject to master netting agreements that allow netting under certain circumstances.
If netting had been applied, the total derivatives asset position would have been \u20ac30m and the total derivatives liability position \u20ac125m at 31 December 2025 (2024: \u20ac81m asset and \u20ac142m liability).
Bonds denominated in foreign currencies are hedged with cross-currency swaps. The currency exposure is hedged by effectively fixing the countervalue in the foreign currency to euros and by hedging the interest rate exposure by swapping the fixed interest rates in foreign currency to fixed interest rates in euros. There is an economic relationship between the hedged items and hedging instruments as the terms of the cross-currency swaps match the terms of the associated bonds. KPN has established a hedge ratio of 1:1 for its hedging relationships as the quantity of hedged items equals the notional amount of the cross-currency swaps. The hedges run until maturity of the underlying bonds.
KPN has also designated certain euro interest rate swaps (IRS) as cash flow hedges, used to re-fix the aggregate exposure of fixed rate bonds that had previously been swapped to floating interest using receiver interest rate swaps. This applies to the \u20ac625m bonds maturing in September 2028 that were re-fixed during 2023. Additionally, a \u20ac200m floating rate term loan has also been fixed through the use of a floating-to-fixed IRS.
For all of the above hedges, KPN meets the criteria of, and also applies, cash flow hedge accounting. The effectiveness of the hedges is determined at inception and on a quarterly basis. To test hedge effectiveness, KPN uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments with those in the fair value of the hedged items attributable to the hedged risks. If the cumulative change in fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be reported in the P&L to the extent that, in absolute terms, the fair value change of the hedging instrument is greater than the fair value change of the hedged item. Hedge ineffectiveness can arise from:
Different curves linked to hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedged item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Nominal (pay) (\u20acm) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|---|
\u20ac625m | 6-month Euribor (in arrear) | 625 | 3.819% annual | 9-4-2025 | - | -3 |
\u00a3250m | 5.000% annual | 305 | 3.643% annual | 18-11-2026 | -20 | -9 |
\u20ac425m1 | 6-month Euribor | 425 | 3.135% annual | 11-9-2028 | -9 | -20 |
\u00a3550m | 5.750% annual | 636 | 4,998% annual | 17-9-2029 | -22 | -8 |
\u20ac200m | 6-month Euribor | 200 | 2.2785% semi-annual | 5-3-2030 | 1 | - |
$595m | 8.375% semi-annual | 450 | 8.517% semi-annual | 1-10-2030 | 40 | 93 |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -9 | 54 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in Statement of Financial Position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -42 | Derivatives | -26 |
Cross-currency swaps USD | 450 | 40 | Derivatives | -53 |
Interest rate swaps EUR | 625 | -7 | Derivatives | 15 |
Total | 2,016 | -9 | \u00a0 | -63 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -16 | Derivatives | 54 |
Cross-currency swaps USD | 450 | 93 | Derivatives | 31 |
Interest rate swaps EUR | 1,250 | -23 | Derivatives | 6 |
Total | 2,641 | 54 | \u00a0 | 92 |
The change in fair value of the associated hedged items attributable to the hedged risks resulted in an ineffectiveness loss in 2025 of \u20ac35m (2024: nil). In total, a \u20ac114m loss has been reclassified from OCI to profit and loss (2024: \u20ac90m gain), offsetting the forex translation effects on the hedged bonds.
\u20ac\u00a0million | Total hedging gain/(loss) recognized in OCI | Ineffectiveness recognized as a gain/(loss) in P&L | Line item in P&L | Amount reclassified from OCI as a gain/(loss) in P&L | Line item in P&L |
|---|---|---|---|---|---|
Year ended 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 24 | -2 | Other financial results | -48 | Other financial results |
Cross-currency swaps USD | 53 | - | Other financial results | -66 | Other financial results |
Interest rate swaps EUR | -15 | - | Other financial results | - | Other financial results |
Total | 61 | -2 | \u00a0 | -114 | \u00a0 |
Year ended 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | -56 | - | Other financial results | 56 | Other financial results |
Cross-currency swaps USD | -31 | - | Other financial results | 34 | Other financial results |
Interest rate swaps EUR | -6 | - | Other financial results | - | Other financial results |
Total | -93 | - | \u00a0 | 90 | \u00a0 |
KPN uses receiver interest rate swaps to swap certain fixed-rate bonds to floating interest rates. Under the receiver swaps, KPN receives fixed-rate interest and pays interest at a variable rate equal to 6-month Euribor. KPN applies fair value hedge accounting to hedge the exposure to changes in the fair value of these fixed-rate bonds against changes in the euro interest curve.
There is an economic relationship between the hedged item and the hedging instrument, as the terms of the interest rate swaps match the terms of the fixed-rate bonds (i.e. notional amount, maturity and payment dates). KPN has established a hedge ratio of 1:1 for the hedging relationships as the quantity of hedged item equals the notional amount of the hedging instrument. For these hedges, KPN meets the criteria of, and also applies, fair value hedge accounting. If the cumulative change in the fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be recorded in the P&L. The hedge ineffectiveness can arise from:
Different curves linked to the hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedge item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|
\u20ac625 | 0.920% annual | 6-month Euribor (fixed in arrears) | 9-4-2025 | - | -2 |
\u20ac4251 | 0.908% annual | 6-month Euribor | 11-9-2028 | -16 | -29 |
\u20ac700 | 0.1435% annual | 6-month Euribor (fixed in arrears) | 15-11-2033 | -70 | -84 |
Total | \u00a0 | \u00a0 | \u00a0 | -86 | -115 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,125 | -86 | Derivatives | 29 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,950 | -115 | Derivatives | 38 |
\u20ac\u00a0million | Carrying amount | Change in fair value adjustments for the period | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,177 | -29 | Borrowings | -35 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,796 | -38 | Borrowings | -45 |
The ineffectiveness recognized in the P&L for the year ended 31 December 2025 was a loss of \u20ac6m (2024: \u20ac7m loss).
At 31 December 2025, there were no derivatives outstanding that are not designated in a hedge relationship.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
KPN aims for the right balance between investments in the business, shareholder remuneration and a prudent financing policy. KPN aims to return its full free cash flow to shareholders through a combination of dividends and share buybacks. Excess cash is used for operational and/or financial flexibility.
The net debt / EBITDA ratio is one of the drivers for KPN\u2019s credit rating. KPN remains committed to an investment-grade credit profile and aims for a net debt / EBITDA ratio of below 2.5x in the medium term.
The difference between the carrying value and nominal value of borrowings amounted to \u20ac109m (2024: \u20ac-20m) and includes: (1) carrying value adjustments resulting from fair value hedges; (2) in the case of foreign currency bonds, the difference between the nominal amount at the prevailing spot rate and the swapped nominal amount in euros; and (3) amortized debt issuance costs, including premiums and/or discounts.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Borrowings | 6,277 | 6,279 |
Perpetual hybrid bonds | 990 | 990 |
50% equity content for hybrid bonds1 | -500 | -500 |
Less: Cash collateral paid on derivatives | -23 | -27 |
Difference between carrying value and nominal value | 109 | -20 |
Adjusted gross debt | 6,854 | 6,722 |
Net cash and cash equivalents | 405 | 662 |
Short-term investments | 147 | 100 |
Net debt2 | 6,302 | 5,960 |
Adjusted EBITDA AL3 | 2,636 | 2,508 |
Net debt / EBITDA4 | 2.4x | 2.4x |
In 2025, KPN\u2019s adjusted gross debt increased to \u20ac6,854m mainly as a result of the \u20ac800m senior bond issuance in February and consolidation of Althio's \u20ac200m term loan, partly offset by \u20ac844m debt redemptions during the year. The total cash position including short-term investments decreased by \u20ac210m to \u20ac552m (2024: \u20ac762m). As a result, the net debt position increased by \u20ac342m to \u20ac6,302m, mainly as a result of acquisitions and other investment activities. The impact of the higher net debt on KPN's Net debt / EBITDA ratio is partly offset by \u20ac129m higher adjusted EBITDA AL, resulting in a ratio of 2.4x (2024: 2.4x).
KPN is exposed to a variety of financial risks. The overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on KPN\u2019s financial position and performance.
Derivatives are used to hedge certain risk exposures (see Note 13.3).
KPN\u2019s key financial risks are:
Credit and counterparty risk;
Liquidity risk;
Market risk.
KPN\u2019s Treasury department manages the financial risks according to policies approved by the Board of Management and Supervisory Board. These policies are established to identify and analyze financial risks, set appropriate risk limits and controls, and monitor adherence to those limits.
KPN\u2019s Treasury department continuously monitors conditions in relevant capital markets and the potential impact on KPN\u2019s liquidity position, sources of financing and financial counterparties, which all remained within acceptable risk limits. KPN did not suffer any material impact on its liquidity reserves and its ability to raise financing remained very strong.
Credit risk arises from the possibility of asset impairment occurring when counterparties are unable to meet their obligations in transactions involving financial instruments. KPN\u2019s counterparty policy sets limits for the maximum exposure per counterparty, which are primarily based on credit ratings, investment periods and concentration limits. The minimum counterparty credit rating is BBB- for cash balances and BBB+ for entering into new derivative transactions. Capital preservation is KPN\u2019s main priority when investing excess cash.
At 31 December 2025, KPN\u2019s cash balances and short-term investments were held in bank accounts, bank deposits with maturities of up to three months and money market funds. The majority of cash balances were invested with counterparties with a credit rating equivalent to A- or higher, and the counterparties of outstanding derivatives have a credit rating equivalent to A or higher.
KPN mitigates credit risk on counterparties arising from derivative financial instruments and energy futures through collateral support agreements, which results in cash being paid or received as security. This cash collateral is released when derivatives are settled and/or mature. In 2025, the net cash collateral movement was \u20ac23m paid (2024: \u20ac60m received). At 31 December 2025, KPN's net collateral position was \u20ac28m received/liability (2024: \u20ac51m received/liability), consisting of \u20ac34m net collateral received for derivatives (2024: \u20ac61m net received) and \u20ac6m net collateral posted for energy contracts (2024: \u20ac10m posted).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 | Net movement (paid)/ received |
|---|---|---|---|
Collateral received on derivatives (liability) | -51 | -78 | -28 |
Collateral posted on derivatives (asset) | 16 | 17 | 1 |
Collateral posted on energy contracts (asset) | 6 | 10 | 3 |
Net collateral asset / (liability) | -28 | -51 | -23 |
Credit risk on trade receivables is controlled using restrictive policies for customer acceptance. Credit management is focused on mobile services. Before accepting certain new customers in this segment, the creditworthiness of prospective clients is checked. In addition, KPN keeps track of the payment performance of customers. If customers fail to meet set criteria, payment issues must be resolved before a new transaction will be entered into.
KPN\u2019s policy is to provide financial guarantees only to wholly-owned subsidiaries. At 31 December 2025, KPN had parent guarantees and bank guarantees outstanding to third parties for various wholly-owned Dutch subsidiaries. The carrying amount of financial assets, including cash, and contract assets represents the maximum credit exposure, which amounted to \u20ac1,537m at 31 December 2025 (2024: \u20ac1,788m). On 31 December 2025, the total outstanding bank guarantees amounted to \u20ac10m (2024: \u20ac6m), which were issued in the ordinary course of business.
See the schedule of the allowances for expected losses in Note 14 for information about credit losses on trade and other receivables. There were no other credit losses.
| \u00a0 | Borrowings | \u00a0 | Derivatives | \u00a0 | \u00a0 | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million | Bonds and loans | Interest on bonds and loans | Lease liabilities (undiscounted) | Other debt and cash collateral1 | \u00a0 | Derivatives inflow (including interest) | Derivatives outflow (including interest) | Trade and other payables2 | Total |
2026 | 287 | 217 | 135 | 91 | \u00a0 | -407 | 431 | 1073 | 1,826 |
2027 | 300 | 202 | 111 | -3 | \u00a0 | -107 | 115 | - | 618 |
2028 | 625 | 196 | 90 | - | \u00a0 | -108 | 115 | - | 918 |
2029 | 630 | 189 | 79 | - | \u00a0 | -724 | 730 | - | 905 |
2030 | 707 | 146 | 68 | - | \u00a0 | -560 | 510 | - | 871 |
2031 and beyond | 4,750 | 424 | 361 | - | \u00a0 | -30 | 68 | - | 5,572 |
Contractual cash flows | 7,298 | 1,373 | 843 | 88 | \u00a0 | -1,935 | 1,969 | 1,073 | 10,710 |
Liquidity risk is the risk that KPN will not be able to meet its financial obligations associated with financial instruments as they become due. KPN\u2019s approach to managing liquidity is to ensure sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage. Some of the derivatives contain reset clauses or collateral postings at pre-agreed dates, to mitigate counterparty exposure during the life of the swap. These reset clauses will result in early euro settlement obligations in cash with the swap counterparty, which could lead to additional cash inflows or outflows before maturity. To reduce liquidity risks, the reset clauses or collateral postings are spread over different points in time.
During 2025, KPN paid a net amount of \u20ac23m in collateral (2024: \u20ac60m received) according to pre-agreed settlement schedules and as variation margin for energy futures.
In addition to the available cash and cash equivalents, short-term investments and cash flows from operations, KPN has the following committed financing resources available:
KPN has a sustainability-linked revolving credit facility for \u20ac1.0 billion provided by twelve relationship banks, originally signed in August 2021, with final maturity on 4 August 2028. The facility can be used for general corporate purposes and does not contain any financial covenants. The facility has a mechanism to adjust the margin based on KPN\u2019s performance on predefined sustainability targets for the rollout of fiber, reduction in KPN\u2019s energy consumption and reduction of carbon emissions in the supply chain. In September 2024, a \u20ac75m bilateral revolving credit facility was signed with similar terms to the syndicated credit facility, bringing the total committed credit facilities to \u20ac1,075m. Neither facility was drawn on during 2024 or 2025.
KPN\u2019s existing capital resources contained the following covenants at 31 December 2025, which could trigger additional financial obligations or early redemption of the outstanding debt. All senior bonds issued after 1 January 2006 (\u20ac5,266m nominal after swaps outstanding at 31 December 2025) contain a change of control clause. KPN may be required to early redeem if certain changes of control occur and within this change of control period (maximum of 90 days) a rating downgrade to sub-investment grade occurs. The perpetual hybrid bonds also contain a change of control clause whereby a 5% interest step-up is triggered if a rating downgrade occurs during the change of control period. In such an event, KPN has the possibility to repurchase the perpetual hybrid bonds at par. In addition, many of KPN\u2019s capital resources contain a covenant prohibiting KPN from entering into any amalgamation, demerger, merger, corporate restructuring or reorganization, unless prior written consent has been given by a majority of the lenders or bondholders or the resulting company assumes all of the rights and obligations with respect to the loans or bonds. Althio\u2019s term loan (\u20ac200m nominal) contains two financial covenants which are tested on a semi-annual basis: (i) net debt to EBITDA shall not exceed 6.75x; and (ii) EBITDA to net finance charges shall exceed 1.25x. Althio was in compliance with all its financial covenants as at 31 December 2025.
KPN is exposed to various kinds of market risks in the ordinary course of business. These include foreign currency exchange rate risk and interest rate risk.
Foreign currency risks mainly result from settlement of international telecommunications traffic and purchase of assets, and primarily consist of Pound sterling and US dollar exposures. Foreign currency exchange rate risks related to bonds that are not denominated in euros are hedged to euros in line with KPN\u2019s hedging policies. Group companies and business operations are obliged to hedge their firm commitments and highly predictable anticipated transactions in non-functional currencies by forward exchange contracts.
Accordingly, KPN\u2019s Treasury department matches and manages the intercompany and external exposures using forward exchange contracts. No hedge accounting is applied for these hedge instruments.
At 31 December 2025, 96% (2024: >97%) of cash and cash equivalents were denominated in the functional currency of the related entities and 100% (2024: >99%) of the net amount of trade receivables and more than 95% (2024: >96%) of the amount of trade payables were outstanding in the functional currency of the related entities.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. Borrowings, derivatives, cash and cash equivalents are subject to interest rate risk. With regard to interest rate risk exposure, KPN periodically evaluates the desired mix of fixed and floating interest rate liabilities, balancing the benefit of lower interest costs against the variability of cash flows. Any interest rate risk exposure longer than one year is considered to be fixed. KPN may use derivative financial instruments to adjust the desired interest rate risk exposure.
At 31 December 2025, 86% of KPN\u2019s interest-bearing gross debt (after swaps, excluding bank overdrafts) was at fixed interest rates (2024: 85%).
With a view to the existing and forecasted debt structure, KPN could enter into additional future derivatives to further adjust the mix of fixed and floating interest rate liabilities.
A sensitivity analysis at 31 December 2025 with regard to interest rate risk on floating interest-bearing liabilities showed that, all else being equal, each adverse change of 100 bps in Euribor would hypothetically result in \u20ac10m higher interest costs per annum (2024: \u20ac10m).
KPN has carried out a sensitivity analysis on the fair value changes of cross-currency and interest rate swaps resulting from changes in interest rates and currency exchange rates. With all other variables held constant, KPN calculated the hypothetical change in the fair value of derivatives based on a +/- 100 bps change in interest rates and a +/- 10% change in the \u20ac/$ and \u20ac/\u00a3 exchange rates. A change in the fair value of derivatives would hypothetically result in a higher or lower value of the hedge reserve (included in equity attributable to equity holders). The results of the analysis are shown in the table below, indicating the hypothetical impact on the fair value of the cross-currency swaps and euro interest rate swaps excluding the partially offsetting impact on the hedged items. Prospective effectiveness testing indicates that all hedges are expected to be highly effective. Consequently, the expected impact on the P&L is immaterial.
| \u00a0 | \u00a0 | \u00a3 swaps | $ swaps | \u20ac\u00a0swaps | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million (before tax) | Change | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Change in interest rate | +1%-point | 2 | 2 | -1 | -3 | -45 | -49 | -45 | -51 |
| \u00a0 | -1%-point | -2 | -2 | 1 | 4 | 49 | 54 | 48 | 55 |
Change in forex rate | +10%-point | 4 | 4 | 10 | 11 | N.a. | N.a. | 14 | 15 |
| \u00a0 | -10%-point | -5 | -4 | -12 | -14 | N.a. | N.a. | -17 | -18 |
For the sensitivity analysis on interest rate risk regarding pensions, see Note 17.
\u20ac\u00a0million | Gross amount | Financial liabilities | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 405 | - | 405 | - | 405 |
Collateral1 | 16 | - | 16 | -16 | - |
Derivatives2 | 41 | - | 41 | -41 | - |
Total | 463 | - | 463 | -58 | 405 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 662 | - | 662 | - | 662 |
Collateral1 | 17 | - | 17 | -17 | - |
Derivatives2 | 100 | - | 100 | -93 | 7 |
Total | 779 | - | 779 | -110 | 669 |
\u20ac\u00a0million | Gross amount | Financial assets | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 51 | - | 51 | -30 | 21 |
Derivatives2 | 137 | - | 137 | -28 | 109 |
Total | 187 | - | 187 | -58 | 130 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 78 | - | 78 | -74 | 5 |
Derivatives2 | 161 | - | 161 | -36 | 125 |
Total | 240 | - | 240 | -110 | 130 |
For the financial assets and liabilities summarized above, each agreement between KPN and the counterparty allows for net settlement of the relevant financial assets and liabilities when both parties elect to settle on a net basis.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Trade receivables | 225 | - | 247 | - |
Financial receivables handsets | 125 | - | 103 | - |
Sales to be invoiced | 114 | - | 106 | - |
Interest to be received | 3 | - | 6 | - |
Prepayments | 82 | 17 | 79 | 15 |
Accruals and other receivables | 27 | 4 | 5 | 30 |
Loans granted to third parties | - | 52 | - | 49 |
Loans to associates and joint ventures | - | 3 | - | 3 |
Total | 575 | 76 | 546 | 97 |
The financial receivables handsets consist of not yet invoiced installment payments on the handset loans, mainly issued by KPN Finance B.V. A handset sale combined with a postpaid subscription is treated as a consumer loan under the Dutch Financial Supervision Act (Wet op het financieel toezicht, Wft) if the consumer customer repays the handset in monthly installments and the credit amount is above \u20ac250. These handset installment payments are not conditional on the delivery of the telecoms firm's services. Therefore, a financial receivable is recognized for the installments to be received.
In 2025, KPN Finance assigned \u20ac85m in outstanding financial receivables handsets to a bank (2024: \u20ac129m) and removed these receivables from the balance sheet as the transfer of the receivables is characterized as a sale because the risks and rewards of ownership of the receivables have been substantially transferred. KPN has provided an indemnity to the bank for when the realized losses on the transferred receivables are exceptionally high. The financial receivables handsets issued by KPN Finance (\u20ac108m) are measured at FVOCI (2024: \u20ac82m). The fair value is the amount at which these receivables could be assigned to the bank (nominal value less deductions for interest and credit risk as agreed).
Of the other receivables, \u20ac23m relates to cash collateral received on derivatives and energy contracts (2024: \u20ac27m).
Sales to be invoiced include accrued income related to usage of KPN\u2019s network, which is invoiced monthly in arrears.
The fee for projects to be invoiced is accounted for as accrued income if the right to invoice is unconditional and not dependent on the provision of future recurring services.
The carrying amounts of trade and other receivables approximate their fair value. Trade and other receivables are non-interest-bearing. Trade receivables are generally on payment terms of 5-30 days.
The age profile of the gross trade receivables is as follows:
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Trade receivables gross | \u00a0 | \u00a0 |
Amounts undue | 183 | 207 |
Past due 0\u201390 days | 34 | 48 |
Past due 91\u2013360 days | 17 | 13 |
More than one year | 4 | 4 |
Total trade receivables gross | 239 | 271 |
Provision for credit risk exposure | -14 | -24 |
Total trade receivables net | 225 | 247 |
Movement schedule of the allowances for expected credit losses:
\u20ac\u00a0million | Trade receivables |
|---|---|
Balance at 1 January 2024 | 16 |
Additions/releases P&L | 17 |
Usage | -10 |
Balance at 31 December 2024 | 24 |
Additions/releases P&L | -2 |
Usage | -9 |
Balance at 31 December 2025 | 14 |
The allowance for expected credit losses for trade receivables is based on the aging of the gross amounts and historic losses and is adjusted, if applicable, for expected deterioration or improvement of credit losses based on forecasts of future economic conditions. For the largest customers, an assessment is done as to whether an additional allowance needs to be recognized.
Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
Cash and cash equivalents consist of highly liquid instruments with initial maturities of three months or less, including balances on bank accounts, bank deposits and prime money market funds.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Cash | 255 | 151 |
Short-term bank deposits and money market funds | 150 | 511 |
Total cash and cash equivalents | 405 | 662 |
The decrease in cash and cash equivalents was mainly the result of \u20ac675m in dividends paid, \u20ac250m in net share repurchases, \u20ac59m in M&A and Glaspoort-related payments, \u20ac59m in coupon payments on perpetual hybrid bonds, \u20ac47m increase in short-term investments, \u20ac46m of swap settlements, \u20ac44m in net debt redemptions and \u20ac23m in net outflow of cash collateral on derivatives, partly offset by \u20ac952m in free cash flow.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Trade payables | 696 | - | 600 | - |
Accrued interest | 100 | - | 99 | - |
Accrued expenses | 312 | - | 341 | - |
Social security and other taxes payable | 210 | - | 217 | - |
Other payables | 38 | 36 | 22 | 23 |
Total | 1,357 | 36 | 1,278 | 23 |
Some of KPN\u2019s suppliers participate in supplier finance arrangements giving suppliers the opportunity to receive earlier payment (from a financial institution), without modifying KPN\u2019s payment terms, or providing KPN with an extended payment period. As the payment terms under these arrangements do not materially deviate from customary payment terms in the industry or from the terms agreed with suppliers who do not participate in these arrangements, the related liabilities are classified as trade and other payables, and payments are classified as operating cash flow. The supplier finance arrangements do not impact covenants or KPN\u2019s access to (future) borrowings from financial institutions.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Carrying amount of liabilities that are part of supplier finance arrangements | \u00a0 | \u00a0 |
Presented within trade payables | 260 | 264 |
Of which suppliers have been paid by finance providers | 196 | 215 |
Range of payment due dates (days after the invoice date) | \u00a0 | \u00a0 |
Liabilities that are part of the arrangements | 30-90 days | 30-90 days |
Comparable trade payables that are not part of the arrangements | 30-90 days | 30-90 days |
Level 1: Fair value of instruments traded in active markets and based on quoted market prices.
Level 2: Instrument is not traded in an active market and fair value is determined by using valuation techniques based on maximum use of observable market data for all significant inputs.
Level 3: One or more of the significant inputs are not based on observable market data; the fair value is estimated using models and other valuation methods.
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 118 | 118 |
Other current financial assets | 147 | - | - | 147 |
Derivatives (cross-currency interest rate swap) | - | 40 | - | 40 |
Derivatives (interest rate swap) and other | - | - | - | - |
Cash and cash equivalents | 405 | - | - | 405 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 108 | - | 108 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 123 | 123 |
Total assets | 552 | 148 | 242 | 941 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,170 | - | - | 1,170 |
Derivatives (cross-currency interest rate swap) | - | 42 | - | 42 |
Derivatives (interest rate swap) | - | 93 | - | 93 |
Total liabilities | 1,170 | 136 | - | 1,306 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 155 | 155 |
Other current financial assets | 100 | - | - | 100 |
Derivatives (cross-currency interest rate swap) | - | 96 | - | 96 |
Derivatives (interest rate swap) and other | - | 5 | - | 5 |
Cash and cash equivalents | 662 | - | - | 662 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 82 | - | 82 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 119 | 119 |
Total assets | 762 | 183 | 274 | 1,219 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,779 | - | - | 1,779 |
Derivatives (cross-currency interest rate swap) | - | 20 | - | 20 |
Derivatives (interest rate swap) | - | 142 | - | 142 |
Total liabilities | 1,779 | 161 | - | 1,941 |
Level 1: Fair value of instruments traded in active markets and based on quoted market prices.
Level 2: Instrument is not traded in an active market and fair value is determined by using valuation techniques based on maximum use of observable market data for all significant inputs.
Level 3: One or more of the significant inputs are not based on observable market data; the fair value is estimated using models and other valuation methods.
The fair value of KPN Ventures' equity investments is based, where applicable, on the price of the last fundraising round of the equity investment, investment valuations or the bid made in mergers and acquisitions transactions. These equity investments are direct and indirect investments in innovative technology companies that are in the start-up or scale-up phase and whose fair value may have a dynamic nature. The investment valuations take into account forward-looking estimates and judgements about the underlying business, market conditions and other factors.
The fair value of the investment in the Townsend Real Estate Fund (TREF) is based on the most recent available net asset value as reported by TREF less a discount for lack of liquidity.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
Following the transaction resulting in the creation of Althio B.V. on 13 February 2025, KPN consolidated Althio\u2019s outstanding \u20ac200m term loan as part of other borrowings, with a carrying value of \u20ac196m.
On 17 February 2025, KPN issued a \u20ac800m 3.375% senior bond maturing on 17 February 2035.
On 9 April 2025, KPN redeemed a \u20ac625m 0.625% senior bond at its scheduled maturity date. This bond had been swapped to a fixed interest of 3.524%.
KPN\u2019s weighted average interest rate on total outstanding borrowings including the perpetual hybrid bonds (classified as equity) on 31 December 2025 was 3.8% after swaps (2024: 4.0%). KPN's weighted average interest rate on senior debt on 31 December 2025 was 3.5% after swaps (2024: 3.8%).
| \u00a0 | \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|---|
\u20ac\u00a0million | Notes | Carrying amount | Fair value | Carrying amount | Fair value |
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | [13.1] | 118 | 118 | 155 | 155 |
Other current financial assets | [13.1] | 147 | 147 | 100 | 100 |
Derivatives | [13.3] | 40 | 40 | 101 | 101 |
Cash and cash equivalents | [15] | 405 | 405 | 662 | 662 |
Financial assets at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables1 | [14.1] | 440 | 440 | 464 | 464 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | [14.1] | 108 | 108 | 82 | 82 |
Equity investments | [13.1] | 123 | 123 | 119 | 119 |
Total financial assets | \u00a0 | 1,382 | 1,382 | 1,683 | 1,683 |
Financial liabilities FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 1,177 | 1,170 | 1,796 | 1,779 |
Derivatives | [13.3] | 136 | 136 | 161 | 161 |
Financial liabilities at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 5,100 | 5,126 | 4,483 | 4,523 |
Trade and other payables3 | [20] | 1,173 | 1,173 | 1,076 | 1,076 |
Total financial liabilities4 | \u00a0 | 7,586 | 7,605 | 7,515 | 7,539 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 118 | 118 |
Other current financial assets | 147 | - | - | 147 |
Derivatives (cross-currency interest rate swap) | - | 40 | - | 40 |
Derivatives (interest rate swap) and other | - | - | - | - |
Cash and cash equivalents | 405 | - | - | 405 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 108 | - | 108 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 123 | 123 |
Total assets | 552 | 148 | 242 | 941 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,170 | - | - | 1,170 |
Derivatives (cross-currency interest rate swap) | - | 42 | - | 42 |
Derivatives (interest rate swap) | - | 93 | - | 93 |
Total liabilities | 1,170 | 136 | - | 1,306 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 155 | 155 |
Other current financial assets | 100 | - | - | 100 |
Derivatives (cross-currency interest rate swap) | - | 96 | - | 96 |
Derivatives (interest rate swap) and other | - | 5 | - | 5 |
Cash and cash equivalents | 662 | - | - | 662 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 82 | - | 82 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 119 | 119 |
Total assets | 762 | 183 | 274 | 1,219 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,779 | - | - | 1,779 |
Derivatives (cross-currency interest rate swap) | - | 20 | - | 20 |
Derivatives (interest rate swap) | - | 142 | - | 142 |
Total liabilities | 1,779 | 161 | - | 1,941 |
Level 1: Fair value of instruments traded in active markets and based on quoted market prices.
Level 2: Instrument is not traded in an active market and fair value is determined by using valuation techniques based on maximum use of observable market data for all significant inputs.
Level 3: One or more of the significant inputs are not based on observable market data; the fair value is estimated using models and other valuation methods.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
Upon the sale in 2021 of the 50% interest in Glaspoort to Drepana Investments Holding, KPN received a cash consideration upon deal close of \u20ac233m and a contingent cash receivable of \u20ac234m. The contingent cash receivable, to be received in annual installments based on Glaspoort's rollout progress, is classified as a financial asset measured at fair value through profit or loss. The contingent cash receivable was initially valued at \u20ac218m. At 31 December 2025, the carrying value was \u20ac118m (2024: \u20ac155m), of which \u20ac34m current (2024: \u20ac40m). In 2025, the book value was increased by \u20ac6m interest (2024: \u20ac8m) and decreased by \u20ac41m (2024: \u20ac26m) due to received payment. The fair value adjustment was \u20ac2m loss (2024: nil). Both interest and fair value adjustment were recognized in other financial results in 2025.
Based on Glaspoort's current rollout plan, KPN expects the final payment in 2029. The fair value of this contingent receivable is deemed equal to the net present value of the full amount of the installments to be received according to the expected rollout schedule as included in Glaspoort's most recent business plan. A weighted average discount rate of 4.9% has been used based on the following elements:
A base-rate using mid-swap rates to account for the time value of money, plus;
A credit spread mark-up to account for the risk of non-payment based on AA-rated credit curves resulting in a weighted average spread of ~0.2% over a 3-year tenor, plus;
A mark-up to reflect the rollout risk (mostly the risk of delay).
A 50 basis points increase (decrease) in the discount rate would lead to a \u20ac0.6m decrease (increase) in the carrying value at 31 December 2025.\u00a0
This includes several minority stakes, mainly of KPN Ventures, of which the largest is Smart Photonics Holding B.V., a foundry offering production services for indium phosphide based photonic components with a carrying value of \u20ac14m (2024: \u20ac3m). In addition, this includes an investment in the Townsend Real Estate Fund acquired in 2024 from the Getronics US pension fund (see Note 17). KPN elected fair value through OCI for these equity instruments that are not held for trading.
The fair value of KPN Ventures' equity investments is based, where applicable, on the price of the last fundraising round of the equity investment, investment valuations or the bid made in mergers and acquisitions transactions. These equity investments are direct and indirect investments in innovative technology companies that are in the start-up or scale-up phase and whose fair value may have a dynamic nature. The investment valuations take into account forward-looking estimates and judgements about the underlying business, market conditions and other factors.
The fair value of the investment in the Townsend Real Estate Fund (TREF) is based on the most recent available net asset value as reported by TREF less a discount for lack of liquidity.
Movement schedule of the equity investments measured at fair value through OCI
\u20ac\u00a0million | Equity investments measured at FVOCI |
|---|---|
Balance at 1 January 2024 | 90 |
Additions | 28 |
Disposals | -1 |
Remeasurements recognized in OCI | 2 |
Balance at 31 December 2024 | 119 |
Additions | 15 |
Disposals | -2 |
Redemptions | -5 |
Remeasurements recognized in OCI | -3 |
Other changes | -1 |
Balance at 31 December 2025 | 123 |
Other current financial assets include investments in short-term money market funds of \u20ac147m (2024: \u20ac100m), which are held at fair value through profit or loss (FVPL). These funds have a low volatility, with an investment objective of preservation of principal. Fair value is based on quoted market prices.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
Following the transaction resulting in the creation of Althio B.V. on 13 February 2025, KPN consolidated Althio\u2019s outstanding \u20ac200m term loan as part of other borrowings, with a carrying value of \u20ac196m.
On 17 February 2025, KPN issued a \u20ac800m 3.375% senior bond maturing on 17 February 2035.
On 9 April 2025, KPN redeemed a \u20ac625m 0.625% senior bond at its scheduled maturity date. This bond had been swapped to a fixed interest of 3.524%.
KPN\u2019s weighted average interest rate on total outstanding borrowings including the perpetual hybrid bonds (classified as equity) on 31 December 2025 was 3.8% after swaps (2024: 4.0%). KPN's weighted average interest rate on senior debt on 31 December 2025 was 3.5% after swaps (2024: 3.8%).
million | Nominal | Carrying amount \u20ac | Nominal after swap \u20ac | Number of bonds |
|---|---|---|---|---|
Senior bonds EUR denominated | 4,325 | 4,154 | 4,325 | 6 |
Senior bonds GBP denominated | 800 | 914 | 941 | 2 |
Senior bonds USD denominated | 595 | 554 | 450 | 1 |
KPN has an unlimited Global Medium-Term Notes program which is used to meet medium- to long-term funding requirements. As at 31 December 2025, the total amounts outstanding under this program were \u20ac4,325m across six bonds (carrying value \u20ac4,154m) and \u00a3800m across two bonds (carrying value \u20ac914m, swapped to \u20ac941m nominal). In addition, KPN has a senior global bond with $595m outstanding (carrying value \u20ac554m, swapped to \u20ac450m nominal) which was issued under standalone documentation.
\u20ac\u00a0million | Nominal | Coupon | Classification | Final maturity | First reset date | Credit rating1 |
|---|---|---|---|---|---|---|
EUR perpetual hybrid bond | 500 | 6,000% | Equity | Perpetual | 21 Dec 20272 | BB+/BB+ |
EUR perpetual hybrid bond | 500 | 4,875% | Equity | Perpetual | 18 Sep 20293 | BB+/BB+ |
At 31 December 2025, two hybrid bonds were outstanding with an aggregate nominal amount of \u20ac1,000m. These hybrid bonds are classified as equity under IFRS Accounting Standards and are assigned 50% equity content by credit rating agencies. These bonds are therefore treated 50% as equity and 50% as debt in KPN\u2019s gross and net debt definitions.
KPN may, at its discretion and subject to certain conditions, elect to defer payments of interest on the hybrid bonds. Arrears of interest must be paid if dividends are paid on ordinary shares, if payments are made on other hybrid bonds or in the event of early redemption. KPN does not recognize accruals for coupon payments on the perpetual hybrid bonds of \u20ac54m per annum. If an accrual had been recognized, the amount would have been \u20ac8m on 31 December 2025 (2024: \u20ac12m).
KPN has a euro-commercial paper program under which KPN can issue short-term debt instruments for up to \u20ac1,000m gross notional outstanding. At 31 December 2025, the outstanding balance of commercial paper amounted to \u20ac60m (2024: \u20ac60m), issued at an interest rate of 2.10% (2024: 3.06%).
On 31 December 2025, KPN had \u20ac300m outstanding under a credit facility from the European Investment Bank. This loan has a floating interest rate referenced to 3-month Euribor and a single repayment on 2 August 2027. The interest for the current interest period was fixed at 2.49% per annum.
At 31 December 2025, other borrowings also included Althio's \u20ac196m term loan, \u20ac51m in collateral received as security under derivative financial instruments and \u20ac49m in borrowings under private placements.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
\u20ac\u00a0million | Borrowings | Derivative financial instruments | Net liability | Lease liabilities | Net liability, including lease liabilities |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 5,894 | 184 | 6,078 | 894 | 6,972 |
Exchange differences | 87 | -90 | -4 | - | -4 |
Fair value adjustments | 26 | - | 26 | - | 26 |
Other changes1 | 504 | - | 504 | 67 | 571 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -955 | -33 | -988 | -143 | -1,131 |
Repurchase of perpetual hybrid bonds | -277 | - | -277 | - | -277 |
Issued bonds & loans | 996 | - | 996 | - | 996 |
Net receipts (payments) cash collateral | 5 | - | 5 | - | 5 |
Balance at 31 December 2024 | 6,279 | 60 | 6,339 | 818 | 7,157 |
Exchange differences | -113 | 114 | 1 | - | 1 |
Fair value adjustments | -8 | -27 | -35 | - | -35 |
Changes in consolidation3 | 113 | - | 113 | 54 | 167 |
Other changes1 | 7 | -7 | - | -38 | -39 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -960 | -46 | -1,006 | -127 | -1,133 |
Issued bonds & loans | 793 | - | 793 | - | 793 |
Bank loan | 196 | - | 196 | - | 196 |
Net receipts (payments) cash collateral | -28 | - | -28 | - | -28 |
Balance at 31 December 2025 | 6,277 | 95 | 6,372 | 707 | 7,079 |
| \u00a0 | \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|---|
\u20ac\u00a0million | Notes | Carrying amount | Fair value | Carrying amount | Fair value |
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | [13.1] | 118 | 118 | 155 | 155 |
Other current financial assets | [13.1] | 147 | 147 | 100 | 100 |
Derivatives | [13.3] | 40 | 40 | 101 | 101 |
Cash and cash equivalents | [15] | 405 | 405 | 662 | 662 |
Financial assets at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables1 | [14.1] | 440 | 440 | 464 | 464 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | [14.1] | 108 | 108 | 82 | 82 |
Equity investments | [13.1] | 123 | 123 | 119 | 119 |
Total financial assets | \u00a0 | 1,382 | 1,382 | 1,683 | 1,683 |
Financial liabilities FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 1,177 | 1,170 | 1,796 | 1,779 |
Derivatives | [13.3] | 136 | 136 | 161 | 161 |
Financial liabilities at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 5,100 | 5,126 | 4,483 | 4,523 |
Trade and other payables3 | [20] | 1,173 | 1,173 | 1,076 | 1,076 |
Total financial liabilities4 | \u00a0 | 7,586 | 7,605 | 7,515 | 7,539 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 118 | 118 |
Other current financial assets | 147 | - | - | 147 |
Derivatives (cross-currency interest rate swap) | - | 40 | - | 40 |
Derivatives (interest rate swap) and other | - | - | - | - |
Cash and cash equivalents | 405 | - | - | 405 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 108 | - | 108 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 123 | 123 |
Total assets | 552 | 148 | 242 | 941 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,170 | - | - | 1,170 |
Derivatives (cross-currency interest rate swap) | - | 42 | - | 42 |
Derivatives (interest rate swap) | - | 93 | - | 93 |
Total liabilities | 1,170 | 136 | - | 1,306 |
\u20ac\u00a0million | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | - | - | 155 | 155 |
Other current financial assets | 100 | - | - | 100 |
Derivatives (cross-currency interest rate swap) | - | 96 | - | 96 |
Derivatives (interest rate swap) and other | - | 5 | - | 5 |
Cash and cash equivalents | 662 | - | - | 662 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | - | 82 | - | 82 |
Equity investments: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unlisted securities | - | - | 119 | 119 |
Total assets | 762 | 183 | 274 | 1,219 |
Financial liabilities at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings | 1,779 | - | - | 1,779 |
Derivatives (cross-currency interest rate swap) | - | 20 | - | 20 |
Derivatives (interest rate swap) | - | 142 | - | 142 |
Total liabilities | 1,779 | 161 | - | 1,941 |
Upon the sale in 2021 of the 50% interest in Glaspoort to Drepana Investments Holding, KPN received a cash consideration upon deal close of \u20ac233m and a contingent cash receivable of \u20ac234m. The contingent cash receivable, to be received in annual installments based on Glaspoort's rollout progress, is classified as a financial asset measured at fair value through profit or loss. The contingent cash receivable was initially valued at \u20ac218m. At 31 December 2025, the carrying value was \u20ac118m (2024: \u20ac155m), of which \u20ac34m current (2024: \u20ac40m). In 2025, the book value was increased by \u20ac6m interest (2024: \u20ac8m) and decreased by \u20ac41m (2024: \u20ac26m) due to received payment. The fair value adjustment was \u20ac2m loss (2024: nil). Both interest and fair value adjustment were recognized in other financial results in 2025.
Based on Glaspoort's current rollout plan, KPN expects the final payment in 2029. The fair value of this contingent receivable is deemed equal to the net present value of the full amount of the installments to be received according to the expected rollout schedule as included in Glaspoort's most recent business plan. A weighted average discount rate of 4.9% has been used based on the following elements:
A base-rate using mid-swap rates to account for the time value of money, plus;
A credit spread mark-up to account for the risk of non-payment based on AA-rated credit curves resulting in a weighted average spread of ~0.2% over a 3-year tenor, plus;
A mark-up to reflect the rollout risk (mostly the risk of delay).
A 50 basis points increase (decrease) in the discount rate would lead to a \u20ac0.6m decrease (increase) in the carrying value at 31 December 2025.\u00a0
Other current financial assets include investments in short-term money market funds of \u20ac147m (2024: \u20ac100m), which are held at fair value through profit or loss (FVPL). These funds have a low volatility, with an investment objective of preservation of principal. Fair value is based on quoted market prices.
KPN uses derivatives solely for the purpose of hedging underlying exposures. The primary risks managed using derivative instruments are foreign currency risk and interest rate risk.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Assets (current and non-current) | 40 | 101 |
Liabilities (current and non-current) | -136 | -161 |
Total derivatives | -95 | -61 |
of which: designated in a hedge relationship | -96 | -61 |
of which: other derivatives not designated in a hedge relationship | - | - |
A total loss of \u20ac8m due to hedge ineffectiveness was recognized in the P&L in 2025 (2024: \u20ac7m loss). This was mainly due to differences in the valuation of hedging instruments and hedged items due to credit risk and valuation curves in combination with the cumulative change in the fair value of the hedging instrument becoming greater than the change in the fair value of the hedged item. All hedges continue to be highly effective prospectively.
Derivatives positions are reported on a gross basis and include a credit value adjustment attributable to derivative counterparty default risk. At 31 December 2025, the cumulative credit value adjustment amounted to a \u20ac1m net asset (2024: \u20ac2m net asset). The change in the credit value adjustment was primarily driven by the change in the mark-to-market value of interest rate swaps and changes in the CDS curves of counterparties. Part of the derivatives portfolio is subject to master netting agreements that allow netting under certain circumstances.
If netting had been applied, the total derivatives asset position would have been \u20ac30m and the total derivatives liability position \u20ac125m at 31 December 2025 (2024: \u20ac81m asset and \u20ac142m liability).
Bonds denominated in foreign currencies are hedged with cross-currency swaps. The currency exposure is hedged by effectively fixing the countervalue in the foreign currency to euros and by hedging the interest rate exposure by swapping the fixed interest rates in foreign currency to fixed interest rates in euros. There is an economic relationship between the hedged items and hedging instruments as the terms of the cross-currency swaps match the terms of the associated bonds. KPN has established a hedge ratio of 1:1 for its hedging relationships as the quantity of hedged items equals the notional amount of the cross-currency swaps. The hedges run until maturity of the underlying bonds.
KPN has also designated certain euro interest rate swaps (IRS) as cash flow hedges, used to re-fix the aggregate exposure of fixed rate bonds that had previously been swapped to floating interest using receiver interest rate swaps. This applies to the \u20ac625m bonds maturing in September 2028 that were re-fixed during 2023. Additionally, a \u20ac200m floating rate term loan has also been fixed through the use of a floating-to-fixed IRS.
For all of the above hedges, KPN meets the criteria of, and also applies, cash flow hedge accounting. The effectiveness of the hedges is determined at inception and on a quarterly basis. To test hedge effectiveness, KPN uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments with those in the fair value of the hedged items attributable to the hedged risks. If the cumulative change in fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be reported in the P&L to the extent that, in absolute terms, the fair value change of the hedging instrument is greater than the fair value change of the hedged item. Hedge ineffectiveness can arise from:
Different curves linked to hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedged item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Nominal (pay) (\u20acm) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|---|
\u20ac625m | 6-month Euribor (in arrear) | 625 | 3.819% annual | 9-4-2025 | - | -3 |
\u00a3250m | 5.000% annual | 305 | 3.643% annual | 18-11-2026 | -20 | -9 |
\u20ac425m1 | 6-month Euribor | 425 | 3.135% annual | 11-9-2028 | -9 | -20 |
\u00a3550m | 5.750% annual | 636 | 4,998% annual | 17-9-2029 | -22 | -8 |
\u20ac200m | 6-month Euribor | 200 | 2.2785% semi-annual | 5-3-2030 | 1 | - |
$595m | 8.375% semi-annual | 450 | 8.517% semi-annual | 1-10-2030 | 40 | 93 |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -9 | 54 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in Statement of Financial Position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -42 | Derivatives | -26 |
Cross-currency swaps USD | 450 | 40 | Derivatives | -53 |
Interest rate swaps EUR | 625 | -7 | Derivatives | 15 |
Total | 2,016 | -9 | \u00a0 | -63 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -16 | Derivatives | 54 |
Cross-currency swaps USD | 450 | 93 | Derivatives | 31 |
Interest rate swaps EUR | 1,250 | -23 | Derivatives | 6 |
Total | 2,641 | 54 | \u00a0 | 92 |
The change in fair value of the associated hedged items attributable to the hedged risks resulted in an ineffectiveness loss in 2025 of \u20ac35m (2024: nil). In total, a \u20ac114m loss has been reclassified from OCI to profit and loss (2024: \u20ac90m gain), offsetting the forex translation effects on the hedged bonds.
\u20ac\u00a0million | Total hedging gain/(loss) recognized in OCI | Ineffectiveness recognized as a gain/(loss) in P&L | Line item in P&L | Amount reclassified from OCI as a gain/(loss) in P&L | Line item in P&L |
|---|---|---|---|---|---|
Year ended 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 24 | -2 | Other financial results | -48 | Other financial results |
Cross-currency swaps USD | 53 | - | Other financial results | -66 | Other financial results |
Interest rate swaps EUR | -15 | - | Other financial results | - | Other financial results |
Total | 61 | -2 | \u00a0 | -114 | \u00a0 |
Year ended 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | -56 | - | Other financial results | 56 | Other financial results |
Cross-currency swaps USD | -31 | - | Other financial results | 34 | Other financial results |
Interest rate swaps EUR | -6 | - | Other financial results | - | Other financial results |
Total | -93 | - | \u00a0 | 90 | \u00a0 |
KPN uses receiver interest rate swaps to swap certain fixed-rate bonds to floating interest rates. Under the receiver swaps, KPN receives fixed-rate interest and pays interest at a variable rate equal to 6-month Euribor. KPN applies fair value hedge accounting to hedge the exposure to changes in the fair value of these fixed-rate bonds against changes in the euro interest curve.
There is an economic relationship between the hedged item and the hedging instrument, as the terms of the interest rate swaps match the terms of the fixed-rate bonds (i.e. notional amount, maturity and payment dates). KPN has established a hedge ratio of 1:1 for the hedging relationships as the quantity of hedged item equals the notional amount of the hedging instrument. For these hedges, KPN meets the criteria of, and also applies, fair value hedge accounting. If the cumulative change in the fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be recorded in the P&L. The hedge ineffectiveness can arise from:
Different curves linked to the hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedge item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|
\u20ac625 | 0.920% annual | 6-month Euribor (fixed in arrears) | 9-4-2025 | - | -2 |
\u20ac4251 | 0.908% annual | 6-month Euribor | 11-9-2028 | -16 | -29 |
\u20ac700 | 0.1435% annual | 6-month Euribor (fixed in arrears) | 15-11-2033 | -70 | -84 |
Total | \u00a0 | \u00a0 | \u00a0 | -86 | -115 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,125 | -86 | Derivatives | 29 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,950 | -115 | Derivatives | 38 |
\u20ac\u00a0million | Carrying amount | Change in fair value adjustments for the period | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,177 | -29 | Borrowings | -35 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,796 | -38 | Borrowings | -45 |
The ineffectiveness recognized in the P&L for the year ended 31 December 2025 was a loss of \u20ac6m (2024: \u20ac7m loss).
At 31 December 2025, there were no derivatives outstanding that are not designated in a hedge relationship.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Cash and cash equivalents consist of highly liquid instruments with initial maturities of three months or less, including balances on bank accounts, bank deposits and prime money market funds.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Cash | 255 | 151 |
Short-term bank deposits and money market funds | 150 | 511 |
Total cash and cash equivalents | 405 | 662 |
The decrease in cash and cash equivalents was mainly the result of \u20ac675m in dividends paid, \u20ac250m in net share repurchases, \u20ac59m in M&A and Glaspoort-related payments, \u20ac59m in coupon payments on perpetual hybrid bonds, \u20ac47m increase in short-term investments, \u20ac46m of swap settlements, \u20ac44m in net debt redemptions and \u20ac23m in net outflow of cash collateral on derivatives, partly offset by \u20ac952m in free cash flow.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
| \u00a0 | \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|---|
\u20ac\u00a0million | Notes | Carrying amount | Fair value | Carrying amount | Fair value |
Financial assets at FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent cash receivable regarding sale Glaspoort | [13.1] | 118 | 118 | 155 | 155 |
Other current financial assets | [13.1] | 147 | 147 | 100 | 100 |
Derivatives | [13.3] | 40 | 40 | 101 | 101 |
Cash and cash equivalents | [15] | 405 | 405 | 662 | 662 |
Financial assets at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables1 | [14.1] | 440 | 440 | 464 | 464 |
Financial assets at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial receivables handsets | [14.1] | 108 | 108 | 82 | 82 |
Equity investments | [13.1] | 123 | 123 | 119 | 119 |
Total financial assets | \u00a0 | 1,382 | 1,382 | 1,683 | 1,683 |
Financial liabilities FVPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 1,177 | 1,170 | 1,796 | 1,779 |
Derivatives | [13.3] | 136 | 136 | 161 | 161 |
Financial liabilities at amortized cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Borrowings2 | [13.2] | 5,100 | 5,126 | 4,483 | 4,523 |
Trade and other payables3 | [20] | 1,173 | 1,173 | 1,076 | 1,076 |
Total financial liabilities4 | \u00a0 | 7,586 | 7,605 | 7,515 | 7,539 |
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
This includes several minority stakes, mainly of KPN Ventures, of which the largest is Smart Photonics Holding B.V., a foundry offering production services for indium phosphide based photonic components with a carrying value of \u20ac14m (2024: \u20ac3m). In addition, this includes an investment in the Townsend Real Estate Fund acquired in 2024 from the Getronics US pension fund (see Note 17). KPN elected fair value through OCI for these equity instruments that are not held for trading.
The fair value of KPN Ventures' equity investments is based, where applicable, on the price of the last fundraising round of the equity investment, investment valuations or the bid made in mergers and acquisitions transactions. These equity investments are direct and indirect investments in innovative technology companies that are in the start-up or scale-up phase and whose fair value may have a dynamic nature. The investment valuations take into account forward-looking estimates and judgements about the underlying business, market conditions and other factors.
The fair value of the investment in the Townsend Real Estate Fund (TREF) is based on the most recent available net asset value as reported by TREF less a discount for lack of liquidity.
Movement schedule of the equity investments measured at fair value through OCI
\u20ac\u00a0million | Equity investments measured at FVOCI |
|---|---|
Balance at 1 January 2024 | 90 |
Additions | 28 |
Disposals | -1 |
Remeasurements recognized in OCI | 2 |
Balance at 31 December 2024 | 119 |
Additions | 15 |
Disposals | -2 |
Redemptions | -5 |
Remeasurements recognized in OCI | -3 |
Other changes | -1 |
Balance at 31 December 2025 | 123 |
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
Trade and other payables are classified as \"borrowings\" within KPN\u2019s financial liabilities. For the accounting policy, see Note 13.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Trade and other payables are classified as \"borrowings\" within KPN\u2019s financial liabilities. For the accounting policy, see Note 13.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
Financial assets are classified at initial recognition.
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow characteristics and KPN\u2019s business model for managing it.
KPN initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
For the purposes of subsequent measurement, financial assets are classified into four categories:
Financial assets at amortized cost (debt instruments);
Financial assets at fair value through other comprehensive income (OCI) with recycling of cumulative gains and losses (debt instruments);
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
Financial assets at fair value through profit or loss.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
Following the transaction resulting in the creation of Althio B.V. on 13 February 2025, KPN consolidated Althio\u2019s outstanding \u20ac200m term loan as part of other borrowings, with a carrying value of \u20ac196m.
On 17 February 2025, KPN issued a \u20ac800m 3.375% senior bond maturing on 17 February 2035.
On 9 April 2025, KPN redeemed a \u20ac625m 0.625% senior bond at its scheduled maturity date. This bond had been swapped to a fixed interest of 3.524%.
KPN\u2019s weighted average interest rate on total outstanding borrowings including the perpetual hybrid bonds (classified as equity) on 31 December 2025 was 3.8% after swaps (2024: 4.0%). KPN's weighted average interest rate on senior debt on 31 December 2025 was 3.5% after swaps (2024: 3.8%).
million | Nominal | Carrying amount \u20ac | Nominal after swap \u20ac | Number of bonds |
|---|---|---|---|---|
Senior bonds EUR denominated | 4,325 | 4,154 | 4,325 | 6 |
Senior bonds GBP denominated | 800 | 914 | 941 | 2 |
Senior bonds USD denominated | 595 | 554 | 450 | 1 |
KPN has an unlimited Global Medium-Term Notes program which is used to meet medium- to long-term funding requirements. As at 31 December 2025, the total amounts outstanding under this program were \u20ac4,325m across six bonds (carrying value \u20ac4,154m) and \u00a3800m across two bonds (carrying value \u20ac914m, swapped to \u20ac941m nominal). In addition, KPN has a senior global bond with $595m outstanding (carrying value \u20ac554m, swapped to \u20ac450m nominal) which was issued under standalone documentation.
\u20ac\u00a0million | Nominal | Coupon | Classification | Final maturity | First reset date | Credit rating1 |
|---|---|---|---|---|---|---|
EUR perpetual hybrid bond | 500 | 6,000% | Equity | Perpetual | 21 Dec 20272 | BB+/BB+ |
EUR perpetual hybrid bond | 500 | 4,875% | Equity | Perpetual | 18 Sep 20293 | BB+/BB+ |
At 31 December 2025, two hybrid bonds were outstanding with an aggregate nominal amount of \u20ac1,000m. These hybrid bonds are classified as equity under IFRS Accounting Standards and are assigned 50% equity content by credit rating agencies. These bonds are therefore treated 50% as equity and 50% as debt in KPN\u2019s gross and net debt definitions.
KPN may, at its discretion and subject to certain conditions, elect to defer payments of interest on the hybrid bonds. Arrears of interest must be paid if dividends are paid on ordinary shares, if payments are made on other hybrid bonds or in the event of early redemption. KPN does not recognize accruals for coupon payments on the perpetual hybrid bonds of \u20ac54m per annum. If an accrual had been recognized, the amount would have been \u20ac8m on 31 December 2025 (2024: \u20ac12m).
KPN has a euro-commercial paper program under which KPN can issue short-term debt instruments for up to \u20ac1,000m gross notional outstanding. At 31 December 2025, the outstanding balance of commercial paper amounted to \u20ac60m (2024: \u20ac60m), issued at an interest rate of 2.10% (2024: 3.06%).
On 31 December 2025, KPN had \u20ac300m outstanding under a credit facility from the European Investment Bank. This loan has a floating interest rate referenced to 3-month Euribor and a single repayment on 2 August 2027. The interest for the current interest period was fixed at 2.49% per annum.
At 31 December 2025, other borrowings also included Althio's \u20ac196m term loan, \u20ac51m in collateral received as security under derivative financial instruments and \u20ac49m in borrowings under private placements.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
\u20ac\u00a0million | Borrowings | Derivative financial instruments | Net liability | Lease liabilities | Net liability, including lease liabilities |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 5,894 | 184 | 6,078 | 894 | 6,972 |
Exchange differences | 87 | -90 | -4 | - | -4 |
Fair value adjustments | 26 | - | 26 | - | 26 |
Other changes1 | 504 | - | 504 | 67 | 571 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -955 | -33 | -988 | -143 | -1,131 |
Repurchase of perpetual hybrid bonds | -277 | - | -277 | - | -277 |
Issued bonds & loans | 996 | - | 996 | - | 996 |
Net receipts (payments) cash collateral | 5 | - | 5 | - | 5 |
Balance at 31 December 2024 | 6,279 | 60 | 6,339 | 818 | 7,157 |
Exchange differences | -113 | 114 | 1 | - | 1 |
Fair value adjustments | -8 | -27 | -35 | - | -35 |
Changes in consolidation3 | 113 | - | 113 | 54 | 167 |
Other changes1 | 7 | -7 | - | -38 | -39 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -960 | -46 | -1,006 | -127 | -1,133 |
Issued bonds & loans | 793 | - | 793 | - | 793 |
Bank loan | 196 | - | 196 | - | 196 |
Net receipts (payments) cash collateral | -28 | - | -28 | - | -28 |
Balance at 31 December 2025 | 6,277 | 95 | 6,372 | 707 | 7,079 |
| \u00a0 | Borrowings | \u00a0 | Derivatives | \u00a0 | \u00a0 | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million | Bonds and loans | Interest on bonds and loans | Lease liabilities (undiscounted) | Other debt and cash collateral1 | \u00a0 | Derivatives inflow (including interest) | Derivatives outflow (including interest) | Trade and other payables2 | Total |
2026 | 287 | 217 | 135 | 91 | \u00a0 | -407 | 431 | 1073 | 1,826 |
2027 | 300 | 202 | 111 | -3 | \u00a0 | -107 | 115 | - | 618 |
2028 | 625 | 196 | 90 | - | \u00a0 | -108 | 115 | - | 918 |
2029 | 630 | 189 | 79 | - | \u00a0 | -724 | 730 | - | 905 |
2030 | 707 | 146 | 68 | - | \u00a0 | -560 | 510 | - | 871 |
2031 and beyond | 4,750 | 424 | 361 | - | \u00a0 | -30 | 68 | - | 5,572 |
Contractual cash flows | 7,298 | 1,373 | 843 | 88 | \u00a0 | -1,935 | 1,969 | 1,073 | 10,710 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
Following the transaction resulting in the creation of Althio B.V. on 13 February 2025, KPN consolidated Althio\u2019s outstanding \u20ac200m term loan as part of other borrowings, with a carrying value of \u20ac196m.
On 17 February 2025, KPN issued a \u20ac800m 3.375% senior bond maturing on 17 February 2035.
On 9 April 2025, KPN redeemed a \u20ac625m 0.625% senior bond at its scheduled maturity date. This bond had been swapped to a fixed interest of 3.524%.
KPN\u2019s weighted average interest rate on total outstanding borrowings including the perpetual hybrid bonds (classified as equity) on 31 December 2025 was 3.8% after swaps (2024: 4.0%). KPN's weighted average interest rate on senior debt on 31 December 2025 was 3.5% after swaps (2024: 3.8%).
million | Nominal | Carrying amount \u20ac | Nominal after swap \u20ac | Number of bonds |
|---|---|---|---|---|
Senior bonds EUR denominated | 4,325 | 4,154 | 4,325 | 6 |
Senior bonds GBP denominated | 800 | 914 | 941 | 2 |
Senior bonds USD denominated | 595 | 554 | 450 | 1 |
KPN has an unlimited Global Medium-Term Notes program which is used to meet medium- to long-term funding requirements. As at 31 December 2025, the total amounts outstanding under this program were \u20ac4,325m across six bonds (carrying value \u20ac4,154m) and \u00a3800m across two bonds (carrying value \u20ac914m, swapped to \u20ac941m nominal). In addition, KPN has a senior global bond with $595m outstanding (carrying value \u20ac554m, swapped to \u20ac450m nominal) which was issued under standalone documentation.
\u20ac\u00a0million | Nominal | Coupon | Classification | Final maturity | First reset date | Credit rating1 |
|---|---|---|---|---|---|---|
EUR perpetual hybrid bond | 500 | 6,000% | Equity | Perpetual | 21 Dec 20272 | BB+/BB+ |
EUR perpetual hybrid bond | 500 | 4,875% | Equity | Perpetual | 18 Sep 20293 | BB+/BB+ |
At 31 December 2025, two hybrid bonds were outstanding with an aggregate nominal amount of \u20ac1,000m. These hybrid bonds are classified as equity under IFRS Accounting Standards and are assigned 50% equity content by credit rating agencies. These bonds are therefore treated 50% as equity and 50% as debt in KPN\u2019s gross and net debt definitions.
KPN may, at its discretion and subject to certain conditions, elect to defer payments of interest on the hybrid bonds. Arrears of interest must be paid if dividends are paid on ordinary shares, if payments are made on other hybrid bonds or in the event of early redemption. KPN does not recognize accruals for coupon payments on the perpetual hybrid bonds of \u20ac54m per annum. If an accrual had been recognized, the amount would have been \u20ac8m on 31 December 2025 (2024: \u20ac12m).
KPN has a euro-commercial paper program under which KPN can issue short-term debt instruments for up to \u20ac1,000m gross notional outstanding. At 31 December 2025, the outstanding balance of commercial paper amounted to \u20ac60m (2024: \u20ac60m), issued at an interest rate of 2.10% (2024: 3.06%).
On 31 December 2025, KPN had \u20ac300m outstanding under a credit facility from the European Investment Bank. This loan has a floating interest rate referenced to 3-month Euribor and a single repayment on 2 August 2027. The interest for the current interest period was fixed at 2.49% per annum.
At 31 December 2025, other borrowings also included Althio's \u20ac196m term loan, \u20ac51m in collateral received as security under derivative financial instruments and \u20ac49m in borrowings under private placements.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
\u20ac\u00a0million | Borrowings | Derivative financial instruments | Net liability | Lease liabilities | Net liability, including lease liabilities |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 5,894 | 184 | 6,078 | 894 | 6,972 |
Exchange differences | 87 | -90 | -4 | - | -4 |
Fair value adjustments | 26 | - | 26 | - | 26 |
Other changes1 | 504 | - | 504 | 67 | 571 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -955 | -33 | -988 | -143 | -1,131 |
Repurchase of perpetual hybrid bonds | -277 | - | -277 | - | -277 |
Issued bonds & loans | 996 | - | 996 | - | 996 |
Net receipts (payments) cash collateral | 5 | - | 5 | - | 5 |
Balance at 31 December 2024 | 6,279 | 60 | 6,339 | 818 | 7,157 |
Exchange differences | -113 | 114 | 1 | - | 1 |
Fair value adjustments | -8 | -27 | -35 | - | -35 |
Changes in consolidation3 | 113 | - | 113 | 54 | 167 |
Other changes1 | 7 | -7 | - | -38 | -39 |
Movements recorded as net cash flows arising from/used in financing activities: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Repayments of borrowings and settlement of derivatives and repayments of lease liabilities2 | -960 | -46 | -1,006 | -127 | -1,133 |
Issued bonds & loans | 793 | - | 793 | - | 793 |
Bank loan | 196 | - | 196 | - | 196 |
Net receipts (payments) cash collateral | -28 | - | -28 | - | -28 |
Balance at 31 December 2025 | 6,277 | 95 | 6,372 | 707 | 7,079 |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
The fair value for senior bonds and hybrid bonds is based on the listed price of the bonds. Other borrowings include commercial paper, received collateral on derivatives, bank overdrafts and other loans.
At 31 December 2025, other borrowings also included Althio's \u20ac196m term loan, \u20ac51m in collateral received as security under derivative financial instruments and \u20ac49m in borrowings under private placements.
KPN mitigates credit risk on counterparties arising from derivative financial instruments and energy futures through collateral support agreements, which results in cash being paid or received as security. This cash collateral is released when derivatives are settled and/or mature. In 2025, the net cash collateral movement was \u20ac23m paid (2024: \u20ac60m received). At 31 December 2025, KPN's net collateral position was \u20ac28m received/liability (2024: \u20ac51m received/liability), consisting of \u20ac34m net collateral received for derivatives (2024: \u20ac61m net received) and \u20ac6m net collateral posted for energy contracts (2024: \u20ac10m posted).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 | Net movement (paid)/ received |
|---|---|---|---|
Collateral received on derivatives (liability) | -51 | -78 | -28 |
Collateral posted on derivatives (asset) | 16 | 17 | 1 |
Collateral posted on energy contracts (asset) | 6 | 10 | 3 |
Net collateral asset / (liability) | -28 | -51 | -23 |
Liquidity risk is the risk that KPN will not be able to meet its financial obligations associated with financial instruments as they become due. KPN\u2019s approach to managing liquidity is to ensure sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage. Some of the derivatives contain reset clauses or collateral postings at pre-agreed dates, to mitigate counterparty exposure during the life of the swap. These reset clauses will result in early euro settlement obligations in cash with the swap counterparty, which could lead to additional cash inflows or outflows before maturity. To reduce liquidity risks, the reset clauses or collateral postings are spread over different points in time.
During 2025, KPN paid a net amount of \u20ac23m in collateral (2024: \u20ac60m received) according to pre-agreed settlement schedules and as variation margin for energy futures.
Of the other receivables, \u20ac23m relates to cash collateral received on derivatives and energy contracts (2024: \u20ac27m).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i9628": { "value": "| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Carrying amount | Fair value | Carrying amount | Fair value |
Senior bonds EUR denominated | 4,154 | 4,076 | 3,976 | 3,932 |
Senior bonds GBP denominated | 914 | 948 | 961 | 986 |
Senior bonds USD denominated | 554 | 592 | 631 | 661 |
Subordinated hybrid bonds classified as liability | - | - | 223 | 223 |
Other borrowings | 656 | 681 | 487 | 500 |
Total borrowings | 6,277 | 6,296 | 6,279 | 6,303 |
> of which: current | 396 | 400 | 899 | 681 |
> of which: non-current | 5,881 | 5,896 | 5,379 | 5,622 |
On 8 February 2025, KPN redeemed the remaining outstanding principal amount of the perpetual hybrid bond (\u20ac223m) issued on 8 November 2019.
\u20ac\u00a0million | Nominal | Coupon | Classification | Final maturity | First reset date | Credit rating1 |
|---|---|---|---|---|---|---|
EUR perpetual hybrid bond | 500 | 6,000% | Equity | Perpetual | 21 Dec 20272 | BB+/BB+ |
EUR perpetual hybrid bond | 500 | 4,875% | Equity | Perpetual | 18 Sep 20293 | BB+/BB+ |
At 31 December 2025, two hybrid bonds were outstanding with an aggregate nominal amount of \u20ac1,000m. These hybrid bonds are classified as equity under IFRS Accounting Standards and are assigned 50% equity content by credit rating agencies. These bonds are therefore treated 50% as equity and 50% as debt in KPN\u2019s gross and net debt definitions.
KPN may, at its discretion and subject to certain conditions, elect to defer payments of interest on the hybrid bonds. Arrears of interest must be paid if dividends are paid on ordinary shares, if payments are made on other hybrid bonds or in the event of early redemption. KPN does not recognize accruals for coupon payments on the perpetual hybrid bonds of \u20ac54m per annum. If an accrual had been recognized, the amount would have been \u20ac8m on 31 December 2025 (2024: \u20ac12m).
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
A critical feature in differentiating a financial liability from an equity instrument is the existence of a contractual obligation for KPN to either deliver cash or another financial asset to the holder or to exchange financial assets or financial liabilities with the holder under conditions that are potentially unfavourable.
Hybrid bonds are classified as equity if there is no fixed redemption date and coupon payments are discretionary, i.e. KPN has the option to defer interest payments. Measurement of hybrid bonds is based on the net proceeds obtained through the issuance of these instruments.\u00a0Coupon payments are recognized directly in equity.
After initial recognition, loans and borrowings that are not part of a fair value hedge, are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the P&L over the period of the borrowings using the effective interest method. The amortized cost is calculated by taking into account any discounts or premiums on acquisition or issuance and transaction costs. The effective interest rate amortization is recognized in the P&L as finance costs.
KPN uses derivatives solely for the purpose of hedging underlying exposures. The primary risks managed using derivative instruments are foreign currency risk and interest rate risk.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Assets (current and non-current) | 40 | 101 |
Liabilities (current and non-current) | -136 | -161 |
Total derivatives | -95 | -61 |
of which: designated in a hedge relationship | -96 | -61 |
of which: other derivatives not designated in a hedge relationship | - | - |
A total loss of \u20ac8m due to hedge ineffectiveness was recognized in the P&L in 2025 (2024: \u20ac7m loss). This was mainly due to differences in the valuation of hedging instruments and hedged items due to credit risk and valuation curves in combination with the cumulative change in the fair value of the hedging instrument becoming greater than the change in the fair value of the hedged item. All hedges continue to be highly effective prospectively.
Derivatives positions are reported on a gross basis and include a credit value adjustment attributable to derivative counterparty default risk. At 31 December 2025, the cumulative credit value adjustment amounted to a \u20ac1m net asset (2024: \u20ac2m net asset). The change in the credit value adjustment was primarily driven by the change in the mark-to-market value of interest rate swaps and changes in the CDS curves of counterparties. Part of the derivatives portfolio is subject to master netting agreements that allow netting under certain circumstances.
If netting had been applied, the total derivatives asset position would have been \u20ac30m and the total derivatives liability position \u20ac125m at 31 December 2025 (2024: \u20ac81m asset and \u20ac142m liability).
Bonds denominated in foreign currencies are hedged with cross-currency swaps. The currency exposure is hedged by effectively fixing the countervalue in the foreign currency to euros and by hedging the interest rate exposure by swapping the fixed interest rates in foreign currency to fixed interest rates in euros. There is an economic relationship between the hedged items and hedging instruments as the terms of the cross-currency swaps match the terms of the associated bonds. KPN has established a hedge ratio of 1:1 for its hedging relationships as the quantity of hedged items equals the notional amount of the cross-currency swaps. The hedges run until maturity of the underlying bonds.
KPN has also designated certain euro interest rate swaps (IRS) as cash flow hedges, used to re-fix the aggregate exposure of fixed rate bonds that had previously been swapped to floating interest using receiver interest rate swaps. This applies to the \u20ac625m bonds maturing in September 2028 that were re-fixed during 2023. Additionally, a \u20ac200m floating rate term loan has also been fixed through the use of a floating-to-fixed IRS.
For all of the above hedges, KPN meets the criteria of, and also applies, cash flow hedge accounting. The effectiveness of the hedges is determined at inception and on a quarterly basis. To test hedge effectiveness, KPN uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments with those in the fair value of the hedged items attributable to the hedged risks. If the cumulative change in fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be reported in the P&L to the extent that, in absolute terms, the fair value change of the hedging instrument is greater than the fair value change of the hedged item. Hedge ineffectiveness can arise from:
Different curves linked to hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedged item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Nominal (pay) (\u20acm) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|---|
\u20ac625m | 6-month Euribor (in arrear) | 625 | 3.819% annual | 9-4-2025 | - | -3 |
\u00a3250m | 5.000% annual | 305 | 3.643% annual | 18-11-2026 | -20 | -9 |
\u20ac425m1 | 6-month Euribor | 425 | 3.135% annual | 11-9-2028 | -9 | -20 |
\u00a3550m | 5.750% annual | 636 | 4,998% annual | 17-9-2029 | -22 | -8 |
\u20ac200m | 6-month Euribor | 200 | 2.2785% semi-annual | 5-3-2030 | 1 | - |
$595m | 8.375% semi-annual | 450 | 8.517% semi-annual | 1-10-2030 | 40 | 93 |
Total | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -9 | 54 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in Statement of Financial Position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -42 | Derivatives | -26 |
Cross-currency swaps USD | 450 | 40 | Derivatives | -53 |
Interest rate swaps EUR | 625 | -7 | Derivatives | 15 |
Total | 2,016 | -9 | \u00a0 | -63 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 941 | -16 | Derivatives | 54 |
Cross-currency swaps USD | 450 | 93 | Derivatives | 31 |
Interest rate swaps EUR | 1,250 | -23 | Derivatives | 6 |
Total | 2,641 | 54 | \u00a0 | 92 |
The change in fair value of the associated hedged items attributable to the hedged risks resulted in an ineffectiveness loss in 2025 of \u20ac35m (2024: nil). In total, a \u20ac114m loss has been reclassified from OCI to profit and loss (2024: \u20ac90m gain), offsetting the forex translation effects on the hedged bonds.
\u20ac\u00a0million | Total hedging gain/(loss) recognized in OCI | Ineffectiveness recognized as a gain/(loss) in P&L | Line item in P&L | Amount reclassified from OCI as a gain/(loss) in P&L | Line item in P&L |
|---|---|---|---|---|---|
Year ended 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | 24 | -2 | Other financial results | -48 | Other financial results |
Cross-currency swaps USD | 53 | - | Other financial results | -66 | Other financial results |
Interest rate swaps EUR | -15 | - | Other financial results | - | Other financial results |
Total | 61 | -2 | \u00a0 | -114 | \u00a0 |
Year ended 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cross-currency swaps GBP | -56 | - | Other financial results | 56 | Other financial results |
Cross-currency swaps USD | -31 | - | Other financial results | 34 | Other financial results |
Interest rate swaps EUR | -6 | - | Other financial results | - | Other financial results |
Total | -93 | - | \u00a0 | 90 | \u00a0 |
KPN uses receiver interest rate swaps to swap certain fixed-rate bonds to floating interest rates. Under the receiver swaps, KPN receives fixed-rate interest and pays interest at a variable rate equal to 6-month Euribor. KPN applies fair value hedge accounting to hedge the exposure to changes in the fair value of these fixed-rate bonds against changes in the euro interest curve.
There is an economic relationship between the hedged item and the hedging instrument, as the terms of the interest rate swaps match the terms of the fixed-rate bonds (i.e. notional amount, maturity and payment dates). KPN has established a hedge ratio of 1:1 for the hedging relationships as the quantity of hedged item equals the notional amount of the hedging instrument. For these hedges, KPN meets the criteria of, and also applies, fair value hedge accounting. If the cumulative change in the fair value of the hedging instrument and hedged item are not equal in absolute terms, the difference will be recorded in the P&L. The hedge ineffectiveness can arise from:
Different curves linked to the hedged items and hedging instruments;
The counterparties\u2019 credit risk differently impacting the fair value movement of the hedging instruments and hedged items;
Changes in the terms of the hedge item or hedge instrument and/or novation of swaps to different counterparties.
Nominal (receive) | Coupon (receive) | Coupon (pay) | Maturity date | Fair value | Fair value |
|---|---|---|---|---|---|
\u20ac625 | 0.920% annual | 6-month Euribor (fixed in arrears) | 9-4-2025 | - | -2 |
\u20ac4251 | 0.908% annual | 6-month Euribor | 11-9-2028 | -16 | -29 |
\u20ac700 | 0.1435% annual | 6-month Euribor (fixed in arrears) | 15-11-2033 | -70 | -84 |
Total | \u00a0 | \u00a0 | \u00a0 | -86 | -115 |
\u20ac\u00a0million | Notional amount | Carrying amount | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,125 | -86 | Derivatives | 29 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest rate swaps | 1,950 | -115 | Derivatives | 38 |
\u20ac\u00a0million | Carrying amount | Change in fair value adjustments for the period | Line item in statement of financial position | Change in fair value used for measuring ineffectiveness for the period |
|---|---|---|---|---|
At 31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,177 | -29 | Borrowings | -35 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
At 31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Fixed-rate eurobonds 2025, 2028 & 2033 | 1,796 | -38 | Borrowings | -45 |
The ineffectiveness recognized in the P&L for the year ended 31 December 2025 was a loss of \u20ac6m (2024: \u20ac7m loss).
At 31 December 2025, there were no derivatives outstanding that are not designated in a hedge relationship.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
KPN has carried out a sensitivity analysis on the fair value changes of cross-currency and interest rate swaps resulting from changes in interest rates and currency exchange rates. With all other variables held constant, KPN calculated the hypothetical change in the fair value of derivatives based on a +/- 100 bps change in interest rates and a +/- 10% change in the \u20ac/$ and \u20ac/\u00a3 exchange rates. A change in the fair value of derivatives would hypothetically result in a higher or lower value of the hedge reserve (included in equity attributable to equity holders). The results of the analysis are shown in the table below, indicating the hypothetical impact on the fair value of the cross-currency swaps and euro interest rate swaps excluding the partially offsetting impact on the hedged items. Prospective effectiveness testing indicates that all hedges are expected to be highly effective. Consequently, the expected impact on the P&L is immaterial.
| \u00a0 | \u00a0 | \u00a3 swaps | $ swaps | \u20ac\u00a0swaps | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million (before tax) | Change | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Change in interest rate | +1%-point | 2 | 2 | -1 | -3 | -45 | -49 | -45 | -51 |
| \u00a0 | -1%-point | -2 | -2 | 1 | 4 | 49 | 54 | 48 | 55 |
Change in forex rate | +10%-point | 4 | 4 | 10 | 11 | N.a. | N.a. | 14 | 15 |
| \u00a0 | -10%-point | -5 | -4 | -12 | -14 | N.a. | N.a. | -17 | -18 |
\u20ac\u00a0million | Gross amount | Financial liabilities | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 405 | - | 405 | - | 405 |
Collateral1 | 16 | - | 16 | -16 | - |
Derivatives2 | 41 | - | 41 | -41 | - |
Total | 463 | - | 463 | -58 | 405 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 662 | - | 662 | - | 662 |
Collateral1 | 17 | - | 17 | -17 | - |
Derivatives2 | 100 | - | 100 | -93 | 7 |
Total | 779 | - | 779 | -110 | 669 |
\u20ac\u00a0million | Gross amount | Financial assets | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 51 | - | 51 | -30 | 21 |
Derivatives2 | 137 | - | 137 | -28 | 109 |
Total | 187 | - | 187 | -58 | 130 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 78 | - | 78 | -74 | 5 |
Derivatives2 | 161 | - | 161 | -36 | 125 |
Total | 240 | - | 240 | -110 | 130 |
For the financial assets and liabilities summarized above, each agreement between KPN and the counterparty allows for net settlement of the relevant financial assets and liabilities when both parties elect to settle on a net basis.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
KPN uses derivatives solely for the purpose of hedging underlying exposures. The primary risks managed using derivative instruments are foreign currency risk and interest rate risk.
KPN aims for the right balance between investments in the business, shareholder remuneration and a prudent financing policy. KPN aims to return its full free cash flow to shareholders through a combination of dividends and share buybacks. Excess cash is used for operational and/or financial flexibility.
The net debt / EBITDA ratio is one of the drivers for KPN\u2019s credit rating. KPN remains committed to an investment-grade credit profile and aims for a net debt / EBITDA ratio of below 2.5x in the medium term.
The difference between the carrying value and nominal value of borrowings amounted to \u20ac109m (2024: \u20ac-20m) and includes: (1) carrying value adjustments resulting from fair value hedges; (2) in the case of foreign currency bonds, the difference between the nominal amount at the prevailing spot rate and the swapped nominal amount in euros; and (3) amortized debt issuance costs, including premiums and/or discounts.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Borrowings | 6,277 | 6,279 |
Perpetual hybrid bonds | 990 | 990 |
50% equity content for hybrid bonds1 | -500 | -500 |
Less: Cash collateral paid on derivatives | -23 | -27 |
Difference between carrying value and nominal value | 109 | -20 |
Adjusted gross debt | 6,854 | 6,722 |
Net cash and cash equivalents | 405 | 662 |
Short-term investments | 147 | 100 |
Net debt2 | 6,302 | 5,960 |
Adjusted EBITDA AL3 | 2,636 | 2,508 |
Net debt / EBITDA4 | 2.4x | 2.4x |
In 2025, KPN\u2019s adjusted gross debt increased to \u20ac6,854m mainly as a result of the \u20ac800m senior bond issuance in February and consolidation of Althio's \u20ac200m term loan, partly offset by \u20ac844m debt redemptions during the year. The total cash position including short-term investments decreased by \u20ac210m to \u20ac552m (2024: \u20ac762m). As a result, the net debt position increased by \u20ac342m to \u20ac6,302m, mainly as a result of acquisitions and other investment activities. The impact of the higher net debt on KPN's Net debt / EBITDA ratio is partly offset by \u20ac129m higher adjusted EBITDA AL, resulting in a ratio of 2.4x (2024: 2.4x).
KPN is exposed to a variety of financial risks. The overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on KPN\u2019s financial position and performance.
Derivatives are used to hedge certain risk exposures (see Note 13.3).
KPN\u2019s key financial risks are:
Credit and counterparty risk;
Liquidity risk;
Market risk.
KPN\u2019s Treasury department manages the financial risks according to policies approved by the Board of Management and Supervisory Board. These policies are established to identify and analyze financial risks, set appropriate risk limits and controls, and monitor adherence to those limits.
KPN\u2019s Treasury department continuously monitors conditions in relevant capital markets and the potential impact on KPN\u2019s liquidity position, sources of financing and financial counterparties, which all remained within acceptable risk limits. KPN did not suffer any material impact on its liquidity reserves and its ability to raise financing remained very strong.
Credit risk arises from the possibility of asset impairment occurring when counterparties are unable to meet their obligations in transactions involving financial instruments. KPN\u2019s counterparty policy sets limits for the maximum exposure per counterparty, which are primarily based on credit ratings, investment periods and concentration limits. The minimum counterparty credit rating is BBB- for cash balances and BBB+ for entering into new derivative transactions. Capital preservation is KPN\u2019s main priority when investing excess cash.
At 31 December 2025, KPN\u2019s cash balances and short-term investments were held in bank accounts, bank deposits with maturities of up to three months and money market funds. The majority of cash balances were invested with counterparties with a credit rating equivalent to A- or higher, and the counterparties of outstanding derivatives have a credit rating equivalent to A or higher.
KPN mitigates credit risk on counterparties arising from derivative financial instruments and energy futures through collateral support agreements, which results in cash being paid or received as security. This cash collateral is released when derivatives are settled and/or mature. In 2025, the net cash collateral movement was \u20ac23m paid (2024: \u20ac60m received). At 31 December 2025, KPN's net collateral position was \u20ac28m received/liability (2024: \u20ac51m received/liability), consisting of \u20ac34m net collateral received for derivatives (2024: \u20ac61m net received) and \u20ac6m net collateral posted for energy contracts (2024: \u20ac10m posted).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 | Net movement (paid)/ received |
|---|---|---|---|
Collateral received on derivatives (liability) | -51 | -78 | -28 |
Collateral posted on derivatives (asset) | 16 | 17 | 1 |
Collateral posted on energy contracts (asset) | 6 | 10 | 3 |
Net collateral asset / (liability) | -28 | -51 | -23 |
Credit risk on trade receivables is controlled using restrictive policies for customer acceptance. Credit management is focused on mobile services. Before accepting certain new customers in this segment, the creditworthiness of prospective clients is checked. In addition, KPN keeps track of the payment performance of customers. If customers fail to meet set criteria, payment issues must be resolved before a new transaction will be entered into.
KPN\u2019s policy is to provide financial guarantees only to wholly-owned subsidiaries. At 31 December 2025, KPN had parent guarantees and bank guarantees outstanding to third parties for various wholly-owned Dutch subsidiaries. The carrying amount of financial assets, including cash, and contract assets represents the maximum credit exposure, which amounted to \u20ac1,537m at 31 December 2025 (2024: \u20ac1,788m). On 31 December 2025, the total outstanding bank guarantees amounted to \u20ac10m (2024: \u20ac6m), which were issued in the ordinary course of business.
See the schedule of the allowances for expected losses in Note 14 for information about credit losses on trade and other receivables. There were no other credit losses.
| \u00a0 | Borrowings | \u00a0 | Derivatives | \u00a0 | \u00a0 | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million | Bonds and loans | Interest on bonds and loans | Lease liabilities (undiscounted) | Other debt and cash collateral1 | \u00a0 | Derivatives inflow (including interest) | Derivatives outflow (including interest) | Trade and other payables2 | Total |
2026 | 287 | 217 | 135 | 91 | \u00a0 | -407 | 431 | 1073 | 1,826 |
2027 | 300 | 202 | 111 | -3 | \u00a0 | -107 | 115 | - | 618 |
2028 | 625 | 196 | 90 | - | \u00a0 | -108 | 115 | - | 918 |
2029 | 630 | 189 | 79 | - | \u00a0 | -724 | 730 | - | 905 |
2030 | 707 | 146 | 68 | - | \u00a0 | -560 | 510 | - | 871 |
2031 and beyond | 4,750 | 424 | 361 | - | \u00a0 | -30 | 68 | - | 5,572 |
Contractual cash flows | 7,298 | 1,373 | 843 | 88 | \u00a0 | -1,935 | 1,969 | 1,073 | 10,710 |
Liquidity risk is the risk that KPN will not be able to meet its financial obligations associated with financial instruments as they become due. KPN\u2019s approach to managing liquidity is to ensure sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage. Some of the derivatives contain reset clauses or collateral postings at pre-agreed dates, to mitigate counterparty exposure during the life of the swap. These reset clauses will result in early euro settlement obligations in cash with the swap counterparty, which could lead to additional cash inflows or outflows before maturity. To reduce liquidity risks, the reset clauses or collateral postings are spread over different points in time.
During 2025, KPN paid a net amount of \u20ac23m in collateral (2024: \u20ac60m received) according to pre-agreed settlement schedules and as variation margin for energy futures.
In addition to the available cash and cash equivalents, short-term investments and cash flows from operations, KPN has the following committed financing resources available:
KPN has a sustainability-linked revolving credit facility for \u20ac1.0 billion provided by twelve relationship banks, originally signed in August 2021, with final maturity on 4 August 2028. The facility can be used for general corporate purposes and does not contain any financial covenants. The facility has a mechanism to adjust the margin based on KPN\u2019s performance on predefined sustainability targets for the rollout of fiber, reduction in KPN\u2019s energy consumption and reduction of carbon emissions in the supply chain. In September 2024, a \u20ac75m bilateral revolving credit facility was signed with similar terms to the syndicated credit facility, bringing the total committed credit facilities to \u20ac1,075m. Neither facility was drawn on during 2024 or 2025.
KPN\u2019s existing capital resources contained the following covenants at 31 December 2025, which could trigger additional financial obligations or early redemption of the outstanding debt. All senior bonds issued after 1 January 2006 (\u20ac5,266m nominal after swaps outstanding at 31 December 2025) contain a change of control clause. KPN may be required to early redeem if certain changes of control occur and within this change of control period (maximum of 90 days) a rating downgrade to sub-investment grade occurs. The perpetual hybrid bonds also contain a change of control clause whereby a 5% interest step-up is triggered if a rating downgrade occurs during the change of control period. In such an event, KPN has the possibility to repurchase the perpetual hybrid bonds at par. In addition, many of KPN\u2019s capital resources contain a covenant prohibiting KPN from entering into any amalgamation, demerger, merger, corporate restructuring or reorganization, unless prior written consent has been given by a majority of the lenders or bondholders or the resulting company assumes all of the rights and obligations with respect to the loans or bonds. Althio\u2019s term loan (\u20ac200m nominal) contains two financial covenants which are tested on a semi-annual basis: (i) net debt to EBITDA shall not exceed 6.75x; and (ii) EBITDA to net finance charges shall exceed 1.25x. Althio was in compliance with all its financial covenants as at 31 December 2025.
KPN is exposed to various kinds of market risks in the ordinary course of business. These include foreign currency exchange rate risk and interest rate risk.
Foreign currency risks mainly result from settlement of international telecommunications traffic and purchase of assets, and primarily consist of Pound sterling and US dollar exposures. Foreign currency exchange rate risks related to bonds that are not denominated in euros are hedged to euros in line with KPN\u2019s hedging policies. Group companies and business operations are obliged to hedge their firm commitments and highly predictable anticipated transactions in non-functional currencies by forward exchange contracts.
Accordingly, KPN\u2019s Treasury department matches and manages the intercompany and external exposures using forward exchange contracts. No hedge accounting is applied for these hedge instruments.
At 31 December 2025, 96% (2024: >97%) of cash and cash equivalents were denominated in the functional currency of the related entities and 100% (2024: >99%) of the net amount of trade receivables and more than 95% (2024: >96%) of the amount of trade payables were outstanding in the functional currency of the related entities.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. Borrowings, derivatives, cash and cash equivalents are subject to interest rate risk. With regard to interest rate risk exposure, KPN periodically evaluates the desired mix of fixed and floating interest rate liabilities, balancing the benefit of lower interest costs against the variability of cash flows. Any interest rate risk exposure longer than one year is considered to be fixed. KPN may use derivative financial instruments to adjust the desired interest rate risk exposure.
At 31 December 2025, 86% of KPN\u2019s interest-bearing gross debt (after swaps, excluding bank overdrafts) was at fixed interest rates (2024: 85%).
With a view to the existing and forecasted debt structure, KPN could enter into additional future derivatives to further adjust the mix of fixed and floating interest rate liabilities.
A sensitivity analysis at 31 December 2025 with regard to interest rate risk on floating interest-bearing liabilities showed that, all else being equal, each adverse change of 100 bps in Euribor would hypothetically result in \u20ac10m higher interest costs per annum (2024: \u20ac10m).
KPN has carried out a sensitivity analysis on the fair value changes of cross-currency and interest rate swaps resulting from changes in interest rates and currency exchange rates. With all other variables held constant, KPN calculated the hypothetical change in the fair value of derivatives based on a +/- 100 bps change in interest rates and a +/- 10% change in the \u20ac/$ and \u20ac/\u00a3 exchange rates. A change in the fair value of derivatives would hypothetically result in a higher or lower value of the hedge reserve (included in equity attributable to equity holders). The results of the analysis are shown in the table below, indicating the hypothetical impact on the fair value of the cross-currency swaps and euro interest rate swaps excluding the partially offsetting impact on the hedged items. Prospective effectiveness testing indicates that all hedges are expected to be highly effective. Consequently, the expected impact on the P&L is immaterial.
| \u00a0 | \u00a0 | \u00a3 swaps | $ swaps | \u20ac\u00a0swaps | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million (before tax) | Change | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Change in interest rate | +1%-point | 2 | 2 | -1 | -3 | -45 | -49 | -45 | -51 |
| \u00a0 | -1%-point | -2 | -2 | 1 | 4 | 49 | 54 | 48 | 55 |
Change in forex rate | +10%-point | 4 | 4 | 10 | 11 | N.a. | N.a. | 14 | 15 |
| \u00a0 | -10%-point | -5 | -4 | -12 | -14 | N.a. | N.a. | -17 | -18 |
For the sensitivity analysis on interest rate risk regarding pensions, see Note 17.
\u20ac\u00a0million | Gross amount | Financial liabilities | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 405 | - | 405 | - | 405 |
Collateral1 | 16 | - | 16 | -16 | - |
Derivatives2 | 41 | - | 41 | -41 | - |
Total | 463 | - | 463 | -58 | 405 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 662 | - | 662 | - | 662 |
Collateral1 | 17 | - | 17 | -17 | - |
Derivatives2 | 100 | - | 100 | -93 | 7 |
Total | 779 | - | 779 | -110 | 669 |
\u20ac\u00a0million | Gross amount | Financial assets | Net amount in | Not offset: financial instruments/cash collateral | Net amount |
|---|---|---|---|---|---|
31 December 2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 51 | - | 51 | -30 | 21 |
Derivatives2 | 137 | - | 137 | -28 | 109 |
Total | 187 | - | 187 | -58 | 130 |
31 December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral1 | 78 | - | 78 | -74 | 5 |
Derivatives2 | 161 | - | 161 | -36 | 125 |
Total | 240 | - | 240 | -110 | 130 |
For the financial assets and liabilities summarized above, each agreement between KPN and the counterparty allows for net settlement of the relevant financial assets and liabilities when both parties elect to settle on a net basis.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Derivatives are recognized at fair value. Gains and losses arising from changes in fair value are recognized as other financial results during the period in which they arise to the extent that the derivatives have no hedging designation or they are ineffective.
KPN applies IFRS 9 Hedge accounting. Derivatives related to loans are designated as either cash flow or fair value hedges.
Offsetting effects are recognized in the P&L.
The hedge documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how KPN assesses whether the hedging relationship meets the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
There is an \"economic relationship\" between the hedged item and the hedging instrument;
The effect of credit risk does not \"dominate the value changes\" that result from that economic relationship; and
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that KPN actually hedges and the quantity of the hedging instrument that KPN actually uses to hedge that quantity of hedged item.
Changes in the fair value of an effective derivative, which is designated as a fair value hedge, along with the gain or loss on the hedged item that is attributable to the hedged risk, are recorded in the P&L under the line item Other financial results. Changes in the fair value of an effective derivative, which is designated as a cash flow hedge, are recorded in OCI for the effective part, until the P&L is affected by the variability in cash flows of the designated hedged item. The ineffective part of the cash flow hedge is recognized under Other financial results. If a hedge relationship ceases to be an effective hedge or in the event of early redemption of the hedged item, hedge accounting is discontinued prospectively, meaning that subsequent changes in fair value are recognized in the P&L and the cumulative amount recorded in OCI is released in the P&L under Other financial results.
Credit risk arises from the possibility of asset impairment occurring when counterparties are unable to meet their obligations in transactions involving financial instruments. KPN\u2019s counterparty policy sets limits for the maximum exposure per counterparty, which are primarily based on credit ratings, investment periods and concentration limits. The minimum counterparty credit rating is BBB- for cash balances and BBB+ for entering into new derivative transactions. Capital preservation is KPN\u2019s main priority when investing excess cash.
At 31 December 2025, KPN\u2019s cash balances and short-term investments were held in bank accounts, bank deposits with maturities of up to three months and money market funds. The majority of cash balances were invested with counterparties with a credit rating equivalent to A- or higher, and the counterparties of outstanding derivatives have a credit rating equivalent to A or higher.
KPN mitigates credit risk on counterparties arising from derivative financial instruments and energy futures through collateral support agreements, which results in cash being paid or received as security. This cash collateral is released when derivatives are settled and/or mature. In 2025, the net cash collateral movement was \u20ac23m paid (2024: \u20ac60m received). At 31 December 2025, KPN's net collateral position was \u20ac28m received/liability (2024: \u20ac51m received/liability), consisting of \u20ac34m net collateral received for derivatives (2024: \u20ac61m net received) and \u20ac6m net collateral posted for energy contracts (2024: \u20ac10m posted).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 | Net movement (paid)/ received |
|---|---|---|---|
Collateral received on derivatives (liability) | -51 | -78 | -28 |
Collateral posted on derivatives (asset) | 16 | 17 | 1 |
Collateral posted on energy contracts (asset) | 6 | 10 | 3 |
Net collateral asset / (liability) | -28 | -51 | -23 |
Credit risk on trade receivables is controlled using restrictive policies for customer acceptance. Credit management is focused on mobile services. Before accepting certain new customers in this segment, the creditworthiness of prospective clients is checked. In addition, KPN keeps track of the payment performance of customers. If customers fail to meet set criteria, payment issues must be resolved before a new transaction will be entered into.
KPN\u2019s policy is to provide financial guarantees only to wholly-owned subsidiaries. At 31 December 2025, KPN had parent guarantees and bank guarantees outstanding to third parties for various wholly-owned Dutch subsidiaries. The carrying amount of financial assets, including cash, and contract assets represents the maximum credit exposure, which amounted to \u20ac1,537m at 31 December 2025 (2024: \u20ac1,788m). On 31 December 2025, the total outstanding bank guarantees amounted to \u20ac10m (2024: \u20ac6m), which were issued in the ordinary course of business.
See the schedule of the allowances for expected losses in Note 14 for information about credit losses on trade and other receivables. There were no other credit losses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i10336": { "value": "KPN has carried out a sensitivity analysis on the fair value changes of cross-currency and interest rate swaps resulting from changes in interest rates and currency exchange rates. With all other variables held constant, KPN calculated the hypothetical change in the fair value of derivatives based on a +/- 100 bps change in interest rates and a +/- 10% change in the \u20ac/$ and \u20ac/\u00a3 exchange rates. A change in the fair value of derivatives would hypothetically result in a higher or lower value of the hedge reserve (included in equity attributable to equity holders). The results of the analysis are shown in the table below, indicating the hypothetical impact on the fair value of the cross-currency swaps and euro interest rate swaps excluding the partially offsetting impact on the hedged items. Prospective effectiveness testing indicates that all hedges are expected to be highly effective. Consequently, the expected impact on the P&L is immaterial.
| \u00a0 | \u00a0 | \u00a3 swaps | $ swaps | \u20ac\u00a0swaps | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million (before tax) | Change | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Change in interest rate | +1%-point | 2 | 2 | -1 | -3 | -45 | -49 | -45 | -51 |
| \u00a0 | -1%-point | -2 | -2 | 1 | 4 | 49 | 54 | 48 | 55 |
Change in forex rate | +10%-point | 4 | 4 | 10 | 11 | N.a. | N.a. | 14 | 15 |
| \u00a0 | -10%-point | -5 | -4 | -12 | -14 | N.a. | N.a. | -17 | -18 |
| \u00a0 | Borrowings | \u00a0 | Derivatives | \u00a0 | \u00a0 | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million | Bonds and loans | Interest on bonds and loans | Lease liabilities (undiscounted) | Other debt and cash collateral1 | \u00a0 | Derivatives inflow (including interest) | Derivatives outflow (including interest) | Trade and other payables2 | Total |
2026 | 287 | 217 | 135 | 91 | \u00a0 | -407 | 431 | 1073 | 1,826 |
2027 | 300 | 202 | 111 | -3 | \u00a0 | -107 | 115 | - | 618 |
2028 | 625 | 196 | 90 | - | \u00a0 | -108 | 115 | - | 918 |
2029 | 630 | 189 | 79 | - | \u00a0 | -724 | 730 | - | 905 |
2030 | 707 | 146 | 68 | - | \u00a0 | -560 | 510 | - | 871 |
2031 and beyond | 4,750 | 424 | 361 | - | \u00a0 | -30 | 68 | - | 5,572 |
Contractual cash flows | 7,298 | 1,373 | 843 | 88 | \u00a0 | -1,935 | 1,969 | 1,073 | 10,710 |
Liquidity risk is the risk that KPN will not be able to meet its financial obligations associated with financial instruments as they become due. KPN\u2019s approach to managing liquidity is to ensure sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage. Some of the derivatives contain reset clauses or collateral postings at pre-agreed dates, to mitigate counterparty exposure during the life of the swap. These reset clauses will result in early euro settlement obligations in cash with the swap counterparty, which could lead to additional cash inflows or outflows before maturity. To reduce liquidity risks, the reset clauses or collateral postings are spread over different points in time.
During 2025, KPN paid a net amount of \u20ac23m in collateral (2024: \u20ac60m received) according to pre-agreed settlement schedules and as variation margin for energy futures.
In addition to the available cash and cash equivalents, short-term investments and cash flows from operations, KPN has the following committed financing resources available:
KPN has a sustainability-linked revolving credit facility for \u20ac1.0 billion provided by twelve relationship banks, originally signed in August 2021, with final maturity on 4 August 2028. The facility can be used for general corporate purposes and does not contain any financial covenants. The facility has a mechanism to adjust the margin based on KPN\u2019s performance on predefined sustainability targets for the rollout of fiber, reduction in KPN\u2019s energy consumption and reduction of carbon emissions in the supply chain. In September 2024, a \u20ac75m bilateral revolving credit facility was signed with similar terms to the syndicated credit facility, bringing the total committed credit facilities to \u20ac1,075m. Neither facility was drawn on during 2024 or 2025.
KPN\u2019s existing capital resources contained the following covenants at 31 December 2025, which could trigger additional financial obligations or early redemption of the outstanding debt. All senior bonds issued after 1 January 2006 (\u20ac5,266m nominal after swaps outstanding at 31 December 2025) contain a change of control clause. KPN may be required to early redeem if certain changes of control occur and within this change of control period (maximum of 90 days) a rating downgrade to sub-investment grade occurs. The perpetual hybrid bonds also contain a change of control clause whereby a 5% interest step-up is triggered if a rating downgrade occurs during the change of control period. In such an event, KPN has the possibility to repurchase the perpetual hybrid bonds at par. In addition, many of KPN\u2019s capital resources contain a covenant prohibiting KPN from entering into any amalgamation, demerger, merger, corporate restructuring or reorganization, unless prior written consent has been given by a majority of the lenders or bondholders or the resulting company assumes all of the rights and obligations with respect to the loans or bonds. Althio\u2019s term loan (\u20ac200m nominal) contains two financial covenants which are tested on a semi-annual basis: (i) net debt to EBITDA shall not exceed 6.75x; and (ii) EBITDA to net finance charges shall exceed 1.25x. Althio was in compliance with all its financial covenants as at 31 December 2025.
\u20ac\u00a0million | Less than 1 year | 1-5 years | More than 5 years | Total 31 December 2025 | Total 31 December 2024 |
|---|---|---|---|---|---|
Capital and purchase commitments | 878 | 538 | 40 | 1,456 | 1,672 |
Guarantees and other | - | 10 | 124 | 134 | 139 |
Total commitments | 878 | 548 | 164 | 1,590 | 1,811 |
KPN is exposed to various kinds of market risks in the ordinary course of business. These include foreign currency exchange rate risk and interest rate risk.
Foreign currency risks mainly result from settlement of international telecommunications traffic and purchase of assets, and primarily consist of Pound sterling and US dollar exposures. Foreign currency exchange rate risks related to bonds that are not denominated in euros are hedged to euros in line with KPN\u2019s hedging policies. Group companies and business operations are obliged to hedge their firm commitments and highly predictable anticipated transactions in non-functional currencies by forward exchange contracts.
Accordingly, KPN\u2019s Treasury department matches and manages the intercompany and external exposures using forward exchange contracts. No hedge accounting is applied for these hedge instruments.
At 31 December 2025, 96% (2024: >97%) of cash and cash equivalents were denominated in the functional currency of the related entities and 100% (2024: >99%) of the net amount of trade receivables and more than 95% (2024: >96%) of the amount of trade payables were outstanding in the functional currency of the related entities.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. Borrowings, derivatives, cash and cash equivalents are subject to interest rate risk. With regard to interest rate risk exposure, KPN periodically evaluates the desired mix of fixed and floating interest rate liabilities, balancing the benefit of lower interest costs against the variability of cash flows. Any interest rate risk exposure longer than one year is considered to be fixed. KPN may use derivative financial instruments to adjust the desired interest rate risk exposure.
At 31 December 2025, 86% of KPN\u2019s interest-bearing gross debt (after swaps, excluding bank overdrafts) was at fixed interest rates (2024: 85%).
With a view to the existing and forecasted debt structure, KPN could enter into additional future derivatives to further adjust the mix of fixed and floating interest rate liabilities.
A sensitivity analysis at 31 December 2025 with regard to interest rate risk on floating interest-bearing liabilities showed that, all else being equal, each adverse change of 100 bps in Euribor would hypothetically result in \u20ac10m higher interest costs per annum (2024: \u20ac10m).
KPN has carried out a sensitivity analysis on the fair value changes of cross-currency and interest rate swaps resulting from changes in interest rates and currency exchange rates. With all other variables held constant, KPN calculated the hypothetical change in the fair value of derivatives based on a +/- 100 bps change in interest rates and a +/- 10% change in the \u20ac/$ and \u20ac/\u00a3 exchange rates. A change in the fair value of derivatives would hypothetically result in a higher or lower value of the hedge reserve (included in equity attributable to equity holders). The results of the analysis are shown in the table below, indicating the hypothetical impact on the fair value of the cross-currency swaps and euro interest rate swaps excluding the partially offsetting impact on the hedged items. Prospective effectiveness testing indicates that all hedges are expected to be highly effective. Consequently, the expected impact on the P&L is immaterial.
| \u00a0 | \u00a0 | \u00a3 swaps | $ swaps | \u20ac\u00a0swaps | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million (before tax) | Change | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Change in interest rate | +1%-point | 2 | 2 | -1 | -3 | -45 | -49 | -45 | -51 |
| \u00a0 | -1%-point | -2 | -2 | 1 | 4 | 49 | 54 | 48 | 55 |
Change in forex rate | +10%-point | 4 | 4 | 10 | 11 | N.a. | N.a. | 14 | 15 |
| \u00a0 | -10%-point | -5 | -4 | -12 | -14 | N.a. | N.a. | -17 | -18 |
For the sensitivity analysis on interest rate risk regarding pensions, see Note 17.
KPN aims for the right balance between investments in the business, shareholder remuneration and a prudent financing policy. KPN aims to return its full free cash flow to shareholders through a combination of dividends and share buybacks. Excess cash is used for operational and/or financial flexibility.
The net debt / EBITDA ratio is one of the drivers for KPN\u2019s credit rating. KPN remains committed to an investment-grade credit profile and aims for a net debt / EBITDA ratio of below 2.5x in the medium term.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "table-blocktag-i10546": { "value": "| \u00a0 | Borrowings | \u00a0 | Derivatives | \u00a0 | \u00a0 | ||||
|---|---|---|---|---|---|---|---|---|---|
\u20ac\u00a0million | Bonds and loans | Interest on bonds and loans | Lease liabilities (undiscounted) | Other debt and cash collateral1 | \u00a0 | Derivatives inflow (including interest) | Derivatives outflow (including interest) | Trade and other payables2 | Total |
2026 | 287 | 217 | 135 | 91 | \u00a0 | -407 | 431 | 1073 | 1,826 |
2027 | 300 | 202 | 111 | -3 | \u00a0 | -107 | 115 | - | 618 |
2028 | 625 | 196 | 90 | - | \u00a0 | -108 | 115 | - | 918 |
2029 | 630 | 189 | 79 | - | \u00a0 | -724 | 730 | - | 905 |
2030 | 707 | 146 | 68 | - | \u00a0 | -560 | 510 | - | 871 |
2031 and beyond | 4,750 | 424 | 361 | - | \u00a0 | -30 | 68 | - | 5,572 |
Contractual cash flows | 7,298 | 1,373 | 843 | 88 | \u00a0 | -1,935 | 1,969 | 1,073 | 10,710 |
\u20ac\u00a0million | Mobile network | Fixed network & data centers | Real estate | Vehicles | Other | Total |
|---|---|---|---|---|---|---|
Accumulated cost | 1,065 | 77 | 484 | 104 | 30 | 1,760 |
Accumulated depreciation & impairment | -485 | -64 | -332 | -53 | -11 | -945 |
Balance at 1 January 2024 | 580 | 13 | 152 | 51 | 19 | 815 |
Additions | 19 | - | 1 | 47 | 3 | 71 |
Remeasurement & lease modifications | -5 | - | 3 | -3 | 2 | -3 |
Change in consolidation | - | - | - | - | - | - |
Depreciation | -65 | -6 | -31 | -24 | -7 | -132 |
Impairments | - | - | - | - | - | - |
Closing net book value | 529 | 7 | 125 | 72 | 17 | 750 |
Accumulated cost | 1,051 | 37 | 484 | 121 | 34 | 1,727 |
Accumulated depreciation & impairment | -522 | -30 | -359 | -50 | -17 | -977 |
Balance at 31 December 2024 | 529 | 7 | 125 | 72 | 17 | 750 |
Additions | 10 | 0 | 4 | 15 | 14 | 43 |
Remeasurement & lease modifications | -631 | 1 | -11 | 1 | 1 | -71 |
Change in consolidation2 | 54 | - | - | - | - | 54 |
Depreciation | -53 | -3 | -30 | -23 | -8 | -117 |
Impairments | - | - | - | - | - | - |
Closing net book value | 476 | 6 | 89 | 64 | 24 | 659 |
Accumulated cost | 751 | 31 | 439 | 121 | 48 | 1,390 |
Accumulated depreciation & impairment | -276 | -25 | -349 | -57 | -24 | -731 |
Balance at 31 December 2025 | 476 | 6 | 89 | 64 | 24 | 659 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total estimated lease term at commencement of a lease (in years) | 5-15 | 5-20 | 5-20 | 5-7 | <5 | \u00a0 |
\u20ac\u00a0million | Mobile network | Fixed network & data centers | Real estate | Vehicles | Other | Total |
|---|---|---|---|---|---|---|
Non-current lease liability | 522 | 11 | 151 | 34 | 14 | 733 |
Current lease liability | 101 | 7 | 33 | 15 | 5 | 162 |
Balance at 1 January 2024 | 624 | 19 | 184 | 49 | 19 | 894 |
Additions | 19 | 2 | 1 | 47 | 3 | 73 |
Remeasurement & lease modifications | -7 | - | 3 | -3 | 2 | -4 |
Change in consolidation | - | - | - | - | - | - |
Interest | 15 | - | 4 | 3 | - | 23 |
Redemptions | -83 | -8 | -39 | -25 | -12 | -166 |
Closing net book value | 569 | 14 | 153 | 71 | 11 | 818 |
Non-current lease liability | 467 | 10 | 117 | 52 | 10 | 656 |
Current lease liability | 102 | 4 | 36 | 19 | 1 | 163 |
Balance at 31 December 2024 | 569 | 14 | 153 | 71 | 11 | 818 |
Additions | 10 | 3 | 4 | 14 | 14 | 45 |
Remeasurement & lease modifications | -711 | -1 | -11 | 1 | 1 | -81 |
Change in consolidation2 | 54 | - | - | - | - | 54 |
Interest | 14 | - | 4 | 3 | - | 20 |
Redemptions | -67 | -5 | -41 | -25 | -11 | -148 |
Closing net book value | 508 | 11 | 109 | 64 | 15 | 707 |
Non-current lease liability | 433 | 8 | 75 | 44 | 15 | 575 |
Current lease liability | 75 | 4 | 34 | 20 | - | 132 |
Balance at 31 December 2025 | 508 | 11 | 109 | 64 | 15 | 707 |
The redemptions reflect the total payments made during the year for the lease fees included in the lease liability. The redemption consists of the repayments of the lease liabilities which are presented in the cash flow from financing activities (2025: \u20ac127m, 2024: \u20ac143m) and the interest paid during the year (2025: \u20ac20m, 2024: \u20ac23m), which is part of the cash flow from operating activities.
For the maturity analysis of the lease liabilities, see Note 13.4.
KPN\u2019s lease portfolio consists of mobile network (mostly site rentals and mobile towers), fixed network and data centers (technical buildings), real estate (offices and shops), vehicles and other leased assets.
The following amounts are recognized in the profit or loss:
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Depreciation of right-of-use assets | -117 | -132 |
Impairment (-) or impairment reversal right-of-use assets | - | - |
Gain or loss (-) on early terminations | -381 | 2 |
Total depreciation & impairments presented in the P&L | -155 | -130 |
Interest on lease liabilities | -20 | -23 |
Total amount recognized in profit or loss | -175 | -153 |
In 2025, KPN entered into sale and leaseback transactions for some of its technical buildings. The transactions resulted in a gain of \u20ac15m, included in Other income (2024: \u20ac8m). The leaseback periods are limited to a period of five years. The impact on the lease liability and right-of-use asset (fixed network) was limited in both years.
The expenses related to short-term vehicle leases (included in Personnel expenses) are not material. KPN does not apply the low-value exemption and does not have contracts with variable lease payments other than variable lease payments dependent on an index or a rate.
Most of KPN\u2019s lease contracts include extension (renewal) or termination options in line with industry practice. In general these options do not contain rights for exercising termination options or renewing leases with favourable terms and conditions. KPN exercises significant judgment in determining whether these options are reasonably certain to be exercised (see Note 2). The assessments are updated annually or when a significant change in economic circumstances occurs. Periods covered by renewal options deemed reasonably certain or early termination options that are reasonably certain not to be exercised are included in the total lease liability.
A significant number of KPN\u2019s contracts have an unlimited number of extension options. Only those deemed reasonably certain are included in the lease term and therefore the lease liability. A reliable estimate of the potential future lease payments related to periods beyond the lease terms reflected on the balance sheet cannot be provided. This affects mostly the mobile network as well as real estate. Vehicles are generally returned by the end of their term.
KPN acts as a lessor in a limited number of real estate locations, mobile sites (Althio) and some specific types of customer premises equipment, all classified as operating leases. The mobile sites are in general owned assets classified as land and buildings. The terms are 1-15 years. Leases generally include a clause to enable upward revision of the lease fees (annual indexation) and do not contain buy-back agreements, residual value guarantees or variable lease payments. Rental income recognized in 2025 amounted to \u20ac36m (2024: \u20ac2m). The undiscounted amount of future minimum lease receivables under the non-cancelable operating leases at 31 December 2025 was \u20ac325m (31 December 2024: \u20ac9m). The undiscounted lease payments to be received on an annual basis are \u20ac43m for 2026, \u20ac44m for 2027, \u20ac140m for 2028-2030 and \u20ac98m for the remaining years. The carrying amount of assets leased to third parties under operating leases is \u20ac143m (2024: nil).
At the commencement date of a lease (i.e. the date on which the underlying asset of the lease is available for use by KPN), KPN recognizes a lease liability measured at the present value of future lease payments to be made over the term of the lease. This includes fixed fees (including in-substance fixed payments), lease incentives (such as rent-free periods or fee discounts), variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. KPN does not have purchase options to be taken into account. Penalties for early termination of a lease are not included when KPN is reasonably certain that the related early termination will not take place.
All KPN contracts that contain variable lease payments depend on a consumer price index or a rate. However, should other types of fees occur, these variable fees will be accounted for in the operating expenses.
After the commencement date, the lease liabilities increase due to the accrual of interest and decrease due to the payments of fees due. The lease liabilities are remeasured when a change occurs in fees due, the lease term is deemed reasonably certain and/or there are changes to the scope of a lease. Upon remeasurement of the lease liability of a contract, the applied discount rate (incremental borrowing rate) is revised unless the remeasurement relates to a fee change following a change in the consumer price index or rate.
The total lease liability recognized is split into a non-current and a current portion. The current lease liabilities reflect only the part of the payments due within one year related to the repayment of the total lease liabilities.
KPN determines the lease term as the non-cancelable term of a contract together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it is reasonably certain not to be exercised.
KPN applies judgment when assessing if the use of an option is reasonably certain. Factors included are KPN\u2019s asset and network strategy, technological developments, and other circumstances that may impose an economic incentive affecting the expected use of an underlying asset. For vehicles, renewal options are not included in the initial assessment of the lease term as KPN\u2019s policy prescribes the return of vehicles to the lessor at the end of the lease term.
After the commencement of a lease, KPN reassesses the lease term if there is a significant event or change in circumstances that is within KPN\u2019s control and affects KPN\u2019s ability to exercise or not to exercise the option to renew or to terminate a lease.
The implicit discount rates of KPN\u2019s leases are not readily available, with the exception of vehicles. KPN applies its applicable incremental borrowing rate to determine the discounted value of the lease liabilities. Upon modification of a lease, the lease liability is remeasured using the applicable discount rate at the date of the remeasurement. KPN\u2019s incremental borrowing rates are mainly determined using a risk-free rate combined with a spread reflecting KPN\u2019s credit risk. The applicable rate per contract is primarily dependent on the total expected term of a lease at its commencement date (new leases) or the total expected remaining lease term in the event of a remeasurement of a lease.
Right-of-use assets are recognized at the commencement date of a lease as counterpart to the lease liabilities. The right-of-use assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for any remeasurement in the corresponding lease liabilities. The cost of the right-of-use assets includes the initially recognized amount of the corresponding lease liabilities, initial direct costs incurred in obtaining the lease (if any) and lease payments made at or before commencement of the lease. Lease incentives received are deducted from the carrying value of the right-of-use assets.
The right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Right-of-use assets are subject to impairment.
KPN does not apply the practical expedients for low-value leases (leases of an underlying asset with a value of less than \u20ac5,000) and short-term leases (leases with a total expected term of less than 12 months) except for short-term rental vehicles.
For vehicle leases, KPN applies the practical expedient not to separate non-lease components from lease components. Therefore, the full monthly lease fees are reflected in KPN\u2019s statement of financial position. For all types of leased assets, electricity and fuel-related expenses remain part of operating expenses.
Leases where KPN as lessor retains a significant portion of the risk and rewards of ownership of the lease asset are classified as operating leases. The assets remain on the balance sheet and are depreciated over the assets\u2019 useful life.
Lease payments received from lessees are recognized as revenue on a straight-line basis over the lease period.
If KPN acts as a lessor in a finance lease, the transaction is accounted for as a normal sale and the present value of the lease payments to be received is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is deferred and recognized as interest over the lease term.
Financial assets and liabilities are offset and reported on a net basis on the balance sheet only when there is a current legally enforceable right to offset the recognized amounts, and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Trade receivables | 225 | - | 247 | - |
Financial receivables handsets | 125 | - | 103 | - |
Sales to be invoiced | 114 | - | 106 | - |
Interest to be received | 3 | - | 6 | - |
Prepayments | 82 | 17 | 79 | 15 |
Accruals and other receivables | 27 | 4 | 5 | 30 |
Loans granted to third parties | - | 52 | - | 49 |
Loans to associates and joint ventures | - | 3 | - | 3 |
Total | 575 | 76 | 546 | 97 |
The financial receivables handsets consist of not yet invoiced installment payments on the handset loans, mainly issued by KPN Finance B.V. A handset sale combined with a postpaid subscription is treated as a consumer loan under the Dutch Financial Supervision Act (Wet op het financieel toezicht, Wft) if the consumer customer repays the handset in monthly installments and the credit amount is above \u20ac250. These handset installment payments are not conditional on the delivery of the telecoms firm's services. Therefore, a financial receivable is recognized for the installments to be received.
In 2025, KPN Finance assigned \u20ac85m in outstanding financial receivables handsets to a bank (2024: \u20ac129m) and removed these receivables from the balance sheet as the transfer of the receivables is characterized as a sale because the risks and rewards of ownership of the receivables have been substantially transferred. KPN has provided an indemnity to the bank for when the realized losses on the transferred receivables are exceptionally high. The financial receivables handsets issued by KPN Finance (\u20ac108m) are measured at FVOCI (2024: \u20ac82m). The fair value is the amount at which these receivables could be assigned to the bank (nominal value less deductions for interest and credit risk as agreed).
Of the other receivables, \u20ac23m relates to cash collateral received on derivatives and energy contracts (2024: \u20ac27m).
Sales to be invoiced include accrued income related to usage of KPN\u2019s network, which is invoiced monthly in arrears.
The fee for projects to be invoiced is accounted for as accrued income if the right to invoice is unconditional and not dependent on the provision of future recurring services.
The carrying amounts of trade and other receivables approximate their fair value. Trade and other receivables are non-interest-bearing. Trade receivables are generally on payment terms of 5-30 days.
The age profile of the gross trade receivables is as follows:
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Trade receivables gross | \u00a0 | \u00a0 |
Amounts undue | 183 | 207 |
Past due 0\u201390 days | 34 | 48 |
Past due 91\u2013360 days | 17 | 13 |
More than one year | 4 | 4 |
Total trade receivables gross | 239 | 271 |
Provision for credit risk exposure | -14 | -24 |
Total trade receivables net | 225 | 247 |
Movement schedule of the allowances for expected credit losses:
\u20ac\u00a0million | Trade receivables |
|---|---|
Balance at 1 January 2024 | 16 |
Additions/releases P&L | 17 |
Usage | -10 |
Balance at 31 December 2024 | 24 |
Additions/releases P&L | -2 |
Usage | -9 |
Balance at 31 December 2025 | 14 |
The allowance for expected credit losses for trade receivables is based on the aging of the gross amounts and historic losses and is adjusted, if applicable, for expected deterioration or improvement of credit losses based on forecasts of future economic conditions. For the largest customers, an assessment is done as to whether an additional allowance needs to be recognized.
Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
Movement schedule of the allowances for expected credit losses:
\u20ac\u00a0million | Trade receivables |
|---|---|
Balance at 1 January 2024 | 16 |
Additions/releases P&L | 17 |
Usage | -10 |
Balance at 31 December 2024 | 24 |
Additions/releases P&L | -2 |
Usage | -9 |
Balance at 31 December 2025 | 14 |
The allowance for expected credit losses for trade receivables is based on the aging of the gross amounts and historic losses and is adjusted, if applicable, for expected deterioration or improvement of credit losses based on forecasts of future economic conditions. For the largest customers, an assessment is done as to whether an additional allowance needs to be recognized.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "highlightblock-blocktag-i10995": { "value": "Trade and other receivables and contract assets classify as financial assets and are measured at amortized cost if both of the following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
The amortized cost is calculated by taking into account any discounts or premiums on acquisition and transactions costs.
The effective interest rate amortization is recognized under finance income or finance costs.
If a financial asset is held within a business model with the objective of both collecting contractual cash flows and selling the financial asset, the financial asset is measured at fair value through other comprehensive income (FVOCI).
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
If KPN transfers goods or services to a customer before the customer pays a consideration or before payment is due, a contract asset is recognized if the earned consideration is conditional. A financial receivable is recognized if KPN's right to an amount of consideration is unconditional (only the passage of time is required before payment of the consideration is due).
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Costs to fulfill a contract are recognized as an asset if:
The costs relate directly to a contract; and
The costs generate or enhance resources that will be used in satisfying performance obligations in the future; and
The costs are expected to be recovered.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
The incremental costs of obtaining a contract with a customer are recognized as an asset if KPN expects to recover those costs. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to customers, regardless of whether the contract is obtained or not.
Capitalized contract costs are amortized on a linear basis over the period in which KPN transfers the related goods or services to the customer. KPN applies the practical expedient to immediately expense contract costs when the asset that would have resulted from capitalizing such costs would have been amortized within one year or less.
Assets recognized for costs to obtain a contract and costs to fulfill a contract are subject to impairment testing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerAcquisitionCostsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i10981": { "value": "A financial asset is derecognized when the rights to receive cash flows from the asset have expired or KPN has transferred the rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (1) KPN has transferred substantially all the risk and rewards of the asset, or (2) KPN has neither transferred nor retained substantially all the risks and rewards\u00a0of the asset, but has transferred control of the asset.
When KPN has transferred the rights to receive cash flows from an asset or has entered into a pass-through arrangement, KPN evaluates if, and to what extent, KPN has retained the risks and rewards of ownership.\u00a0The risks and rewards are substantially transferred if more than 90% of the variability of the cash flows with respect to an asset is transferred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i10983": { "value": "Financial assets at amortized cost are subsequently measured using the effective interest method less provisions for impairment. An allowance for expected credit losses is recorded for all financial assets and contract assets at initial recognition. The allowance (or day-one impairment) is based on historical credit loss experience. Expected deterioration or improvement of credit losses based on reasonable and supportable information including forecasts of future economic conditions is also taken into account.\u00a0A matrix is used to determine the allowance for expected credit losses based on aging of the trade receivables. The matrix is determined for a group of trade receivables with the same payment pattern. For large (corporate) customers, the allowance is based on a matrix and completed by an (individual) assessment. The allowance rates are regularly updated.
A financial asset is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a \"loss event\") and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated, such as significant financial difficulty of the obligor or a breach of contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i11023": { "value": "Cash and cash equivalents consist of highly liquid instruments with initial maturities of three months or less, including balances on bank accounts, bank deposits and prime money market funds.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Cash | 255 | 151 |
Short-term bank deposits and money market funds | 150 | 511 |
Total cash and cash equivalents | 405 | 662 |
The decrease in cash and cash equivalents was mainly the result of \u20ac675m in dividends paid, \u20ac250m in net share repurchases, \u20ac59m in M&A and Glaspoort-related payments, \u20ac59m in coupon payments on perpetual hybrid bonds, \u20ac47m increase in short-term investments, \u20ac46m of swap settlements, \u20ac44m in net debt redemptions and \u20ac23m in net outflow of cash collateral on derivatives, partly offset by \u20ac952m in free cash flow.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
Cash and cash equivalents comprise cash in hand, deposits held at call with banks, AAA-rated prime money market funds, and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included in borrowings in current liabilities.
Total distributable reserves at 31 December 2025 amounted to \u20ac2,724m, which includes the perpetual hybrid bonds (2024: \u20ac2,721m). For further details on non-distributable reserves, see Note C to the \"Company financial statements\".
Authorized capital totals \u20ac720m and is divided into nine billion ordinary shares of 4 eurocents each and nine billion preference shares B of 4 eurocents each. At 31 December 2025, a total of 3,827,465,305 ordinary shares were outstanding and fully paid-in. Dutch law prohibits KPN from casting a vote on shares KPN holds (treasury shares). The ordinary shares and preference shares B carry the right to cast one vote each. The ordinary shares are registered or payable to the bearer.
Shareholders may request the company to convert their registered shares to bearer shares, but not vice versa.
In 2025, KPN repurchased 62,465,117 ordinary shares at an average price of \u20ac4.00. Of these shares, 61,465,117 were canceled in 2025, reducing the number of outstanding shares to 3,827,465,305.
At the 16 April 2025 AGM, shareholders granted the Board of Management the authority to acquire the company\u2019s own ordinary shares for a period of 18 months, starting on 16 April 2025 and ending on 16 October 2026. The number of ordinary shares to be acquired is limited to a maximum of 10% of the issued capital as at 16 April 2025. The shares may be acquired, by or on behalf of the company, on the stock exchange or through other means at a price per share of at least the par value and at most the quoted share price plus 10%. The quoted share price is defined as the average of the closing prices of KPN shares as reported in the official price list of Euronext Amsterdam over the five trading days prior to the acquisition date. Resolutions by the Board of Management to acquire the company\u2019s own shares are subject to the approval of the Supervisory Board.
Ordinary shares purchased by the company will either be canceled or held in treasury. At the 16 April 2025 AGM, shareholders granted the Board of Management the authority to reduce the issued capital by canceling own shares with the approval of the Supervisory Board. The number of shares that may be canceled is restricted to a maximum of 10% of the issued capital as at 16 April 2025 and these may, if desired, be canceled in one or more phases.
\u20ac\u00a0million, unless indicated otherwise | Number of treasury shares | Treasury shares reserve | Hedge reserve | Currency translation reserve | Total other reserves |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 3,510,888 | -17 | -114 | 17 | -114 |
Movements recorded in OCI (net) | - | - | 18 | - | 18 |
Share buyback | 59,987,360 | -200 | - | - | -200 |
Shares canceled | -58,487,360 | 195 | - | - | 195 |
Treasury shares sold and transferred | -2,359,506 | 11 | - | - | 11 |
Balance at 31 December 2024 | 2,651,382 | -11 | -96 | 17 | -91 |
Movements recorded in OCI (net) | - | - | 49 | - | 49 |
Share buyback | 62,465,117 | -250 | - | - | -250 |
Shares canceled | -61,465,117 | 242 | - | - | 242 |
Treasury shares sold and transferred | -1,247,964 | 5 | - | - | 5 |
Balance at 31 December 2025 | 2,403,418 | -14 | -47 | 17 | -45 |
The additional paid-in capital is exempt from Dutch tax up to an amount of \u20ac8,067m at 31 December 2025 (2024: \u20ac8,311m).
Movements in the hedge reserve recorded in OCI are net of a tax loss of \u20ac17m in 2025 (2024: \u20ac6m loss) and a tax loss in the movement in the currency translation reserve of \u20ac1m (2024: nil).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Effective portion cash flow hedges1 | -23 | -76 |
Amortizable part2 | -40 | -53 |
Hedge reserve | -63 | -129 |
Tax effect | 16 | 33 |
Hedge reserve, net of tax | -47 | -96 |
KPN has purchased shares in its own capital for delivery upon vesting of equity-settled share plans for management (see Note 5). Votes on purchased shares may not be cast and do not count in determining the number of votes required at a general meeting of shareholders. In 2025, 1.0 million shares were purchased for the equity-settled share plans (2024: 1.5 million). In 2025, 1.2 million shares were sold and transferred in connection with vesting of these plans (2024: 2.4 million).
Treasury shares are accounted for at cost, representing the market price on the acquisition date. The proceeds on delivery of the treasury shares are recognized directly in the other reserves.
On 21 September 2022, KPN issued a \u20ac500m hybrid bond with a 6.00% coupon and on 18 June 2024 a \u20ac500m hybrid bond with a 4.875% coupon, both with a perpetual maturity. These bonds are classified as equity in the consolidated statement of financial position and valued at net proceeds (see Note 13.2). On 20 June 2024, the hybrid bond with a 2.00% coupon issued in 2019 was partially repurchased for a principal amount of \u20ac281m and on 20 December 2024 KPN announced that it would redeem the remaining outstanding principal amount (\u20ac219m) at its first reset date (8 February 2025). As a consequence, the remaining outstanding amount of this bond was reclassified from equity to borrowings as of the date of the announcement.
KPN has granted a call option, which is not limited in time, to the Foundation Preference Shares B KPN (the Foundation) to acquire preference shares B. For further information about the Foundation, see the \"Corporate governance\" section.
In KPN\u2019s opinion, the call option does not represent a significant fair value due to the fact that dividend paid on the preference shares B, issued after exercise of the call option, is linked to Euribor.
At the AGM on 15 April 2026, a final dividend of 10.9 eurocents per share will be proposed in respect of 2025. In August 2025, KPN paid an interim dividend in respect of 2025 of 7.3 eurocents per share, in total \u20ac279m, bringing the total regular dividend in respect of 2025 to 18.2 eurocents per share (in total \u20ac696m based on the number of outstanding shares at 31 December 2025 less Treasury shares held by KPN).
These financial statements do not reflect the proposal for the remaining dividend payable. In April 2025, KPN paid a final dividend of 10.2 eurocents per share in respect of 2024, in total \u20ac395m. The total dividend in respect of 2024 was 17.0 eurocents per ordinary share.
Treasury shares are accounted for at cost, representing the market price on the acquisition date. The proceeds on delivery of the treasury shares are recognized directly in the other reserves.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300YO0JZHAL7FVP81", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "title-blocktag-i11027": { "value": "At the AGM on 15 April 2026, a final dividend of 10.9 eurocents per share will be proposed in respect of 2025. In August 2025, KPN paid an interim dividend in respect of 2025 of 7.3 eurocents per share, in total \u20ac279m, bringing the total regular dividend in respect of 2025 to 18.2 eurocents per share (in total \u20ac696m based on the number of outstanding shares at 31 December 2025 less Treasury shares held by KPN).
These financial statements do not reflect the proposal for the remaining dividend payable. In April 2025, KPN paid a final dividend of 10.2 eurocents per share in respect of 2024, in total \u20ac395m. The total dividend in respect of 2024 was 17.0 eurocents per ordinary share.
On outstanding Class B preference shares, a dividend is paid out equal to the average of 12-month Euribor plus 1%. If 12-month Euribor is no longer determined, the dividend on preference shares will be calculated based on the yield on state loans. Subsequently, subject to the approval of the Supervisory Board, the Board of Management will determine what proportion of net income remaining after payment of the dividend on any Class B preference shares will be appropriated to the reserves. The part of the profit remaining after the appropriation to the reserves shall be at the disposal of the AGM. No Class B preference shares were outstanding on 31 December 2025.
The profit of the 2025 financial year attributable to equity holders of the company amounted to \u20ac855m. On 1 August 2025, a regular interim dividend of 7.3 eurocents per ordinary share was paid (total amount of \u20ac279m). On 20 February 2026, the Board of Management, with the approval of the Supervisory Board, appropriated \u20ac158m of the profit 2025 to the other reserves. Taking into account the interim dividend that was paid in August 2025, the remaining part of the profit is available for payment of a final dividend in respect of 2025. The Board of Management, with the approval of the Supervisory Board, will propose to the AGM to pay a final regular dividend of 10.9 eurocents per ordinary share in respect of 2025 (in total \u20ac417m based on the number of outstanding shares at 31 December 2025 less Treasury shares held by KPN).
Authorized capital totals \u20ac720m and is divided into nine billion ordinary shares of 4 eurocents each and nine billion preference shares B of 4 eurocents each. At 31 December 2025, a total of 3,827,465,305 ordinary shares were outstanding and fully paid-in. Dutch law prohibits KPN from casting a vote on shares KPN holds (treasury shares). The ordinary shares and preference shares B carry the right to cast one vote each. The ordinary shares are registered or payable to the bearer.
Shareholders may request the company to convert their registered shares to bearer shares, but not vice versa.
In 2025, KPN repurchased 62,465,117 ordinary shares at an average price of \u20ac4.00. Of these shares, 61,465,117 were canceled in 2025, reducing the number of outstanding shares to 3,827,465,305.
At the 16 April 2025 AGM, shareholders granted the Board of Management the authority to acquire the company\u2019s own ordinary shares for a period of 18 months, starting on 16 April 2025 and ending on 16 October 2026. The number of ordinary shares to be acquired is limited to a maximum of 10% of the issued capital as at 16 April 2025. The shares may be acquired, by or on behalf of the company, on the stock exchange or through other means at a price per share of at least the par value and at most the quoted share price plus 10%. The quoted share price is defined as the average of the closing prices of KPN shares as reported in the official price list of Euronext Amsterdam over the five trading days prior to the acquisition date. Resolutions by the Board of Management to acquire the company\u2019s own shares are subject to the approval of the Supervisory Board.
Ordinary shares purchased by the company will either be canceled or held in treasury. At the 16 April 2025 AGM, shareholders granted the Board of Management the authority to reduce the issued capital by canceling own shares with the approval of the Supervisory Board. The number of shares that may be canceled is restricted to a maximum of 10% of the issued capital as at 16 April 2025 and these may, if desired, be canceled in one or more phases.
Total distributable reserves at 31 December 2025 amounted to \u20ac2,724m, which includes the perpetual hybrid bonds (2024: \u20ac2,721m). For further details on non-distributable reserves, see Note C to the \"Company financial statements\".
\u20ac\u00a0million, unless indicated otherwise | Number of treasury shares | Treasury shares reserve | Hedge reserve | Currency translation reserve | Total other reserves |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 3,510,888 | -17 | -114 | 17 | -114 |
Movements recorded in OCI (net) | - | - | 18 | - | 18 |
Share buyback | 59,987,360 | -200 | - | - | -200 |
Shares canceled | -58,487,360 | 195 | - | - | 195 |
Treasury shares sold and transferred | -2,359,506 | 11 | - | - | 11 |
Balance at 31 December 2024 | 2,651,382 | -11 | -96 | 17 | -91 |
Movements recorded in OCI (net) | - | - | 49 | - | 49 |
Share buyback | 62,465,117 | -250 | - | - | -250 |
Shares canceled | -61,465,117 | 242 | - | - | 242 |
Treasury shares sold and transferred | -1,247,964 | 5 | - | - | 5 |
Balance at 31 December 2025 | 2,403,418 | -14 | -47 | 17 | -45 |
The additional paid-in capital is exempt from Dutch tax up to an amount of \u20ac8,067m at 31 December 2025 (2024: \u20ac8,311m).
Movements in the hedge reserve recorded in OCI are net of a tax loss of \u20ac17m in 2025 (2024: \u20ac6m loss) and a tax loss in the movement in the currency translation reserve of \u20ac1m (2024: nil).
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Effective portion cash flow hedges1 | -23 | -76 |
Amortizable part2 | -40 | -53 |
Hedge reserve | -63 | -129 |
Tax effect | 16 | 33 |
Hedge reserve, net of tax | -47 | -96 |
KPN has purchased shares in its own capital for delivery upon vesting of equity-settled share plans for management (see Note 5). Votes on purchased shares may not be cast and do not count in determining the number of votes required at a general meeting of shareholders. In 2025, 1.0 million shares were purchased for the equity-settled share plans (2024: 1.5 million). In 2025, 1.2 million shares were sold and transferred in connection with vesting of these plans (2024: 2.4 million).
Treasury shares are accounted for at cost, representing the market price on the acquisition date. The proceeds on delivery of the treasury shares are recognized directly in the other reserves.
\u20ac\u00a0million, unless indicated otherwise | Number of treasury shares | Treasury shares reserve | Hedge reserve | Currency translation reserve | Total other reserves |
|---|---|---|---|---|---|
Balance at 1 January 2024 | 3,510,888 | -17 | -114 | 17 | -114 |
Movements recorded in OCI (net) | - | - | 18 | - | 18 |
Share buyback | 59,987,360 | -200 | - | - | -200 |
Shares canceled | -58,487,360 | 195 | - | - | 195 |
Treasury shares sold and transferred | -2,359,506 | 11 | - | - | 11 |
Balance at 31 December 2024 | 2,651,382 | -11 | -96 | 17 | -91 |
Movements recorded in OCI (net) | - | - | 49 | - | 49 |
Share buyback | 62,465,117 | -250 | - | - | -250 |
Shares canceled | -61,465,117 | 242 | - | - | 242 |
Treasury shares sold and transferred | -1,247,964 | 5 | - | - | 5 |
Balance at 31 December 2025 | 2,403,418 | -14 | -47 | 17 | -45 |
KPN has purchased shares in its own capital for delivery upon vesting of equity-settled share plans for management (see Note 5). Votes on purchased shares may not be cast and do not count in determining the number of votes required at a general meeting of shareholders. In 2025, 1.0 million shares were purchased for the equity-settled share plans (2024: 1.5 million). In 2025, 1.2 million shares were sold and transferred in connection with vesting of these plans (2024: 2.4 million).
Treasury shares are accounted for at cost, representing the market price on the acquisition date. The proceeds on delivery of the treasury shares are recognized directly in the other reserves.
The Getronics UK operations were divested in 2012. The closed and frozen pension plan of the former UK operations remained with KPN. The plan consists of a defined benefit section and a smaller defined contribution section with a guaranteed minimum pension (GMP) underpin. The assets in the plan are held separately from KPN in an independently administered fund. The UK plan operates under the regulations of the The Pensions Regulator. The plan is managed by independent trustees who have a fiduciary duty to act in the best interests of the plan members. Responsibilities for plan governance include setting investment strategy, monitoring fund performance, and ensuring compliance with relevant legislation. A funding agreement applies whereby KPN provides contributions to the plan on the basis set out in the triennial statutory actuarial valuation, for Pension Protection Fund levies and certain other costs in relation to the plan.
The deficit in the plan's funding must be recovered by the investment returns of the plan assets and contributions by KPN. It has been agreed with the trustees that the contributions for 2026 amount to \u00a34m and that from 1 January 2027 no contributions are payable other than the Pension Protection Fund levies.
The pension plan exposes KPN to a number of risks, which could have an impact on the future contributions by KPN and the liability recorded in its balance sheet. The most significant risks are summarized below:
Asset volatility risk: The pension plan\u2019s assets are partially invested in equity securities and other return-seeking assets, so the plan's funding levels are exposed to equity market risks. For example, geographic conflicts and interest rate fluctuations could cause significant volatility;
Interest rate risk: A fall in interest rates will increase the plan's liabilities, although this will be largely offset by an increase in the value of the plan's liability-driven investments;
Inflation risk: The indexation of part of the plan's accrued benefits is based on a combination of consumer and retail price indices, so the plan is exposed to inflation risk, although the indexation is capped and this risk is largely hedged with inflation-linked bonds;
Life expectancy risk: The plan provides benefits for the life of the participants, so increases in life expectancy will result in an increase in the plan's liabilities.
GMP is a portion of pension that was accrued by individuals who were contracted out of the additional state pension prior to 6 April 1997. At present there is an inequality of benefits between male and female members who have GMP. The UK High Court ruled in 2018 that equalization will be required for affected defined benefit pension schemes. In the course of 2025, the method for equalizing has been formally agreed with the trustees and this will be implemented in 2026. Since 2018, the benefit obligations have been increased by a fixed percentage to reflect the expected cost of GMP equalisation. The final cost to the UK plan for equalizing depends on a complex interaction between the benefit design and membership profile.
The Getronics US operations were divested in 2008. The closed and frozen pension plan of the former US operations remained with KPN and was accounted for as a defined benefit plan. The assets of the plan were held separately from KPN in independently administered funds. The plan operated under the provisions of the Employee Retirement Income Security Act (ERISA). In 2023, KPN started the process to terminate the plan and settle all of the plan's liabilities. In 2024, KPN acquired from the plan its investment in the Townsend Real Estate Fund at fair market value (\u20ac10m, see Note 13.1) and made a final contribution to the plan of \u20ac2m to fully fund the plan. The plan was terminated in 2025 and excess assets of \u20ac1m were transferred to KPN.
KPN has a number of other funded (insured) plans in the Netherlands which are all closed to new entrants. KPN is not entitled to any excess profits. In 2025, these plans were classified as defined contribution going forward, after a risk reassesment. KPN is not entitled to any excess profits nor obliged to make additional contributions other than those related to value transfers. The risk therefore does not fall in substance on the employer. Under Dutch law, KPN could be required to make contributions if participants of these plans require a value transfer to another pension fund or insurer.
In 2022, a new early retirement plan was implemented for a limited group of employees, for which an expense of \u20ac1m was recorded in 2025 and in 2024. This plan has been treated as a defined benefit.
The provisions for retirement benefit obligations consist of the net defined benefit liability regarding pension plans and early retirement plans, which are accounted for as defined benefit plans as described above. See the table below for a specification of the balance sheet position.
| \u00a0 | Defined benefit obligation1 | Fair value of assets | Net defined benefit liability (asset) | |||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Balance at 1 January | 280 | 386 | -263 | -353 | 17 | 33 |
Included in profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Operating expense2 | -27 | -92 | 29 | 96 | 2 | 4 |
Interest expense (income) | 14 | 16 | -13 | -14 | -1 | 2 |
Included in OCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Remeasurements loss (gain): | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Actuarial loss (gain)3 | - | -20 | - | - | - | -20 |
Return on plan assets excluding interest income | - | - | -2 | 16 | -2 | 16 |
Effect of movements in exchange rates | -12 | 14 | 12 | -12 | - | 2 |
Total | -12 | -6 | 10 | 4 | -2 | -2 |
Other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Employer\u2019s contribution | - | - | -10 | -20 | -10 | -20 |
Benefits paid | -17 | -24 | 17 | 24 | - | - |
Balance at 31 December | 238 | 280 | -230 | -263 | 7 | 17 |
The key actuarial assumptions used in the calculation of the defined benefit obligations are as follows:
| \u00a0 | 31 December 2025 | 31 December 2024 | |
|---|---|---|---|
| \u00a0 | Getronics UK | Getronics UK | Other |
Discount rate (%) | 5.4 | 5.5 | 3.4 |
Expected salary increases (%) | n/a | n/a | 2.0 |
Expected benefit increases/indexation (%) | 2.2-2.6 | 2.4-2.9 | 0.0 |
Life expectancy for pensioners at retirement age: | \u00a0 | \u00a0 | \u00a0 |
Men | 22.1 | 21.7 | 21.8 |
Women | 24.0 | 23.8 | 23.8 |
The discount rate is based on the yield of AA corporate bonds with maturities equal to the duration of the benefit obligations and in the applicable currency. At 31 December 2025, the duration of the defined benefit obligation was 10 years.
Assumptions regarding life expectancy are based on published statistics and mortality tables that include allowances for future improvement in mortality. The mortality tables used in the UK are the scaling factors of 97% for men and 102% for women of the SAPS S3PXA tables, which include the Continuous Mortality Investigation 2024 projection of a 1.0% long-term improvement. Life expectancy in the UK at the age of 65 is expected to increase in the next 20 years by between 1 and 2 years.
The following table shows the approximate impact on the defined benefit obligation of a change in the key actuarial assumptions of 0.5% and of a change in life expectancy of one year.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Increase | Decrease | Increase | Decrease |
Discount rate | -11 | 12 | -14 | 15 |
Expected salary increases | - | - | - | - |
Expected benefit increases | 7 | -7 | 7 | -7 |
Life expectancy | 8 | -8 | 11 | -11 |
This sensitivity analysis assumes changes in one variable while holding others constant, which may not reflect real-world interdependencies.
The assets of all defined benefit pension plans at 31 December 2025 and 2024 comprise:
| \u00a0 | 31 December 2025 | 31 December 2024 |
|---|---|---|
Quoted in active markets: | \u00a0 | \u00a0 |
Equity securities | 22% | 17% |
Fixed-income securities | 53% | 50% |
Real estate | 1% | 2% |
Other | 2% | 0% |
Not quoted in active markets: | \u00a0 | \u00a0 |
Fixed-income securities | 14% | 13% |
Other | 8% | 18% |
The strategic asset allocations of the defined benefit plans at year-end 2025 were as follows:
\u20ac\u00a0million | Getronics UK |
|---|---|
Equity securities | 20% |
Fixed-income securities (including inflation-linked bonds) | 60% |
Other | 20% |
Total | 100% |
The Getronics UK pension fund maintains liability hedge ratios on a technical provision basis of 100% of assets for both interest rate and inflation exposure, resulting in higher hedge ratios as its funded status improves. As the UK pension fund invests in global investment funds, a minimal part of these investments could be related to KPN equities. The pension funds do not have direct investments in KPN equities.
In 2025, the total employer\u2019s contributions and benefit payments for all defined benefit and defined contribution plans amounted to \u20ac102m, consisting of \u20ac92m in employer\u2019s premiums for defined contribution plans, \u20ac9m in contributions for funded defined benefit plans and \u20ac1m in payments for unfunded plans.
The amount of employer\u2019s contributions in 2026 for remaining defined benefit pension plans is estimated to be \u20ac5m for the funded plan (UK pension plan) and \u20ac1m for the unfunded plan (early retirement plan). The total amount of employer\u2019s premiums to be paid in 2026 for the defined contribution plans is estimated to be \u20ac96m.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Restructuring provision | 20 | 19 |
Asset retirement obligations | 92 | 77 |
Other provisions | 33 | 38 |
Total provisions for other liabilities and charges | 145 | 134 |
> of which: current | 30 | 29 |
> of which: non-current | 115 | 105 |
\u20ac\u00a0million | Personnel | Contractual | Total restructuring | Asset retirement obligation | Other provisions | Total provisions |
|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 22 | 2 | 24 | 75 | 36 | 135 |
of which: current portion | 22 | 1 | 23 | 4 | 5 | 32 |
Additions | 28 | - | 28 | 6 | 9 | 43 |
Releases | - | - | - | -1 | -1 | -2 |
Usage | -33 | -1 | -34 | -3 | -6 | -42 |
Balance at 31 December 2024 | 17 | 1 | 19 | 77 | 38 | 134 |
of which: current portion | 17 | 1 | 18 | 4 | 7 | 29 |
Additions | 37 | - | 37 | 13 | 5 | 55 |
Releases | - | - | - | -9 | -2 | -12 |
Usage | -35 | -1 | -35 | -2 | -8 | -46 |
Changes in consolidation1 | - | - | - | 13 | - | 13 |
Balance at 31 December 2025 | 19 | 1 | 20 | 92 | 33 | 145 |
< 1 year | 18 | 1 | 19 | 5 | 6 | 30 |
1-5 years | 1 | - | 1 | 13 | 7 | 20 |
> 5 years | - | - | - | 74 | 20 | 94 |
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
The provision for asset retirement obligations (ARO) relates to radio sites and leased buildings and is based on assumptions of the estimated costs of removal, discount rate and estimated period of removal, which vary per type of asset. In 2025, \u20ac13m was added to the ARO provision (2024: \u20ac6m) and \u20ac9m was released (2024: \u20ac1m). Of the addition to the ARO provision in 2025, \u20ac12m was recognized as an increase in the carrying value of the capitalized asset retirement costs (ARC), which is included in Property, plant and equipment (2024: \u20ac5m). Of the release of the ARO provision in 2025, \u20ac9m was recognized as a decrease in the carrying value of the ARC (2024: \u20ac0).
As defined in the Telecommunications Act, the obligation for landlords to tolerate cables terminates as soon as those cables have been idle for a continuous period of 10 years. The covenant the telecoms sector concluded with a representation of landlords (\"Uitvoeringsafspraken Verwijderen Ongebruikte Telecomkabels\") states there must be a clear usefulness and necessity to remove the copper cables, also taking into account the expected costs of the removal operation. There are major uncertainties as to (1) whether and when landlords will place a reasonable request for removal of idle cables that meet the conditions of the covenant and (2) the amount and timing of any outflow. In our opinion, it is therefore not possible to make a reliable estimate of the amount that is required to meet the obligation and hence no provision for future claims was recognized at 31 December 2025 nor at 31 December 2024. There were also no material actual claims that need provisioning.
This includes provisions for claims and litigations, onerous contracts and warranties, and provisions for long-term obligations to employees related to jubilee or other long-service employee benefits, long-term disability benefits and, if they are not fully payable within 12 months after the end of the period, bonuses and deferred compensation. The expected costs of these benefits are accrued over the period of employment using an accounting method similar to that for defined benefit pension plans, except that actuarial gains and losses and past-service costs are recognized immediately in the P&L.
Provisions for asset retirement obligations, restructuring costs and legal claims are recognized when KPN has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, these positions are classified as contingent liabilities, unless the cash outflow is considered remote.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure required to settle the present obligation at balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.
KPN is involved in a number of legal and tax proceedings that have arisen in the ordinary course of its business and in discontinued operations, including commercial, regulatory and other proceedings. Periodically, KPN carefully assesses the likelihood that legal and tax proceedings may lead to a cash in- or outflow. KPN recognizes provisions in case of a cash outflow if and when the chance is estimated as probable and a reliable estimate of the cash outflow can be made. KPN recognizes the assets in case of a cash inflow if and when the chance is estimated as virtually certain. When these criteria are not met, such matters are classified as contingent assets or liabilities, unless the cash inflow is considered possible or the cash outflow is considered remote.
However, the outcome of such proceedings can be difficult to predict with certainty and KPN can offer no assurances. In some cases, the impact of a legal proceeding may be more strategic than financial or such impact cannot properly be quantified. A description is given below of legal-related contingent assets and liabilities that could have a material impact for KPN.
See Note 18 for a contingent liability related to idle cables and the accounting policy for provisions.
A pending claim by a customer regarding the validity of certain clauses in our general terms & conditions for consumers could impact our ability to amend our tariffs for consumers, potentially also with retroactive effect.
In KPN\u2019s Articles of Association and in a further decision by the Board of Management, which was approved by the Supervisory Board, KPN has indemnified the members and former members of KPN\u2019s Board of Management and Supervisory Board, as well as a number of KPN\u2019s officers and directors and former officers and directors, against liabilities, claims, judgements, fines and penalties incurred by such officers or directors as a result of any threatened, pending or completed action, investigation or proceeding (whether civil, criminal or administrative) brought by a third party in relation to acts or omissions in or related to their capacity as officer or director. The indemnification does not apply to claims and expenses reimbursed by insurers nor to an officer or a director adjudged to be liable for willful misconduct (\"opzet\") or intentional recklessness (\"bewuste roekeloosheid\").
The Getronics UK operations were divested in 2012. The closed and frozen pension plan of the former UK operations remained with KPN. The plan consists of a defined benefit section and a smaller defined contribution section with a guaranteed minimum pension (GMP) underpin. The assets in the plan are held separately from KPN in an independently administered fund. The UK plan operates under the regulations of the The Pensions Regulator. The plan is managed by independent trustees who have a fiduciary duty to act in the best interests of the plan members. Responsibilities for plan governance include setting investment strategy, monitoring fund performance, and ensuring compliance with relevant legislation. A funding agreement applies whereby KPN provides contributions to the plan on the basis set out in the triennial statutory actuarial valuation, for Pension Protection Fund levies and certain other costs in relation to the plan.
The deficit in the plan's funding must be recovered by the investment returns of the plan assets and contributions by KPN. It has been agreed with the trustees that the contributions for 2026 amount to \u00a34m and that from 1 January 2027 no contributions are payable other than the Pension Protection Fund levies.
The pension plan exposes KPN to a number of risks, which could have an impact on the future contributions by KPN and the liability recorded in its balance sheet. The most significant risks are summarized below:
Asset volatility risk: The pension plan\u2019s assets are partially invested in equity securities and other return-seeking assets, so the plan's funding levels are exposed to equity market risks. For example, geographic conflicts and interest rate fluctuations could cause significant volatility;
Interest rate risk: A fall in interest rates will increase the plan's liabilities, although this will be largely offset by an increase in the value of the plan's liability-driven investments;
Inflation risk: The indexation of part of the plan's accrued benefits is based on a combination of consumer and retail price indices, so the plan is exposed to inflation risk, although the indexation is capped and this risk is largely hedged with inflation-linked bonds;
Life expectancy risk: The plan provides benefits for the life of the participants, so increases in life expectancy will result in an increase in the plan's liabilities.
GMP is a portion of pension that was accrued by individuals who were contracted out of the additional state pension prior to 6 April 1997. At present there is an inequality of benefits between male and female members who have GMP. The UK High Court ruled in 2018 that equalization will be required for affected defined benefit pension schemes. In the course of 2025, the method for equalizing has been formally agreed with the trustees and this will be implemented in 2026. Since 2018, the benefit obligations have been increased by a fixed percentage to reflect the expected cost of GMP equalisation. The final cost to the UK plan for equalizing depends on a complex interaction between the benefit design and membership profile.
The Getronics US operations were divested in 2008. The closed and frozen pension plan of the former US operations remained with KPN and was accounted for as a defined benefit plan. The assets of the plan were held separately from KPN in independently administered funds. The plan operated under the provisions of the Employee Retirement Income Security Act (ERISA). In 2023, KPN started the process to terminate the plan and settle all of the plan's liabilities. In 2024, KPN acquired from the plan its investment in the Townsend Real Estate Fund at fair market value (\u20ac10m, see Note 13.1) and made a final contribution to the plan of \u20ac2m to fully fund the plan. The plan was terminated in 2025 and excess assets of \u20ac1m were transferred to KPN.
KPN has a number of other funded (insured) plans in the Netherlands which are all closed to new entrants. KPN is not entitled to any excess profits. In 2025, these plans were classified as defined contribution going forward, after a risk reassesment. KPN is not entitled to any excess profits nor obliged to make additional contributions other than those related to value transfers. The risk therefore does not fall in substance on the employer. Under Dutch law, KPN could be required to make contributions if participants of these plans require a value transfer to another pension fund or insurer.
In 2022, a new early retirement plan was implemented for a limited group of employees, for which an expense of \u20ac1m was recorded in 2025 and in 2024. This plan has been treated as a defined benefit.
The provisions for retirement benefit obligations consist of the net defined benefit liability regarding pension plans and early retirement plans, which are accounted for as defined benefit plans as described above. See the table below for a specification of the balance sheet position.
| \u00a0 | Defined benefit obligation1 | Fair value of assets | Net defined benefit liability (asset) | |||
|---|---|---|---|---|---|---|
\u20ac\u00a0million | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
Balance at 1 January | 280 | 386 | -263 | -353 | 17 | 33 |
Included in profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Operating expense2 | -27 | -92 | 29 | 96 | 2 | 4 |
Interest expense (income) | 14 | 16 | -13 | -14 | -1 | 2 |
Included in OCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Remeasurements loss (gain): | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Actuarial loss (gain)3 | - | -20 | - | - | - | -20 |
Return on plan assets excluding interest income | - | - | -2 | 16 | -2 | 16 |
Effect of movements in exchange rates | -12 | 14 | 12 | -12 | - | 2 |
Total | -12 | -6 | 10 | 4 | -2 | -2 |
Other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Employer\u2019s contribution | - | - | -10 | -20 | -10 | -20 |
Benefits paid | -17 | -24 | 17 | 24 | - | - |
Balance at 31 December | 238 | 280 | -230 | -263 | 7 | 17 |
The key actuarial assumptions used in the calculation of the defined benefit obligations are as follows:
| \u00a0 | 31 December 2025 | 31 December 2024 | |
|---|---|---|---|
| \u00a0 | Getronics UK | Getronics UK | Other |
Discount rate (%) | 5.4 | 5.5 | 3.4 |
Expected salary increases (%) | n/a | n/a | 2.0 |
Expected benefit increases/indexation (%) | 2.2-2.6 | 2.4-2.9 | 0.0 |
Life expectancy for pensioners at retirement age: | \u00a0 | \u00a0 | \u00a0 |
Men | 22.1 | 21.7 | 21.8 |
Women | 24.0 | 23.8 | 23.8 |
The discount rate is based on the yield of AA corporate bonds with maturities equal to the duration of the benefit obligations and in the applicable currency. At 31 December 2025, the duration of the defined benefit obligation was 10 years.
Assumptions regarding life expectancy are based on published statistics and mortality tables that include allowances for future improvement in mortality. The mortality tables used in the UK are the scaling factors of 97% for men and 102% for women of the SAPS S3PXA tables, which include the Continuous Mortality Investigation 2024 projection of a 1.0% long-term improvement. Life expectancy in the UK at the age of 65 is expected to increase in the next 20 years by between 1 and 2 years.
The following table shows the approximate impact on the defined benefit obligation of a change in the key actuarial assumptions of 0.5% and of a change in life expectancy of one year.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Increase | Decrease | Increase | Decrease |
Discount rate | -11 | 12 | -14 | 15 |
Expected salary increases | - | - | - | - |
Expected benefit increases | 7 | -7 | 7 | -7 |
Life expectancy | 8 | -8 | 11 | -11 |
This sensitivity analysis assumes changes in one variable while holding others constant, which may not reflect real-world interdependencies.
The assets of all defined benefit pension plans at 31 December 2025 and 2024 comprise:
| \u00a0 | 31 December 2025 | 31 December 2024 |
|---|---|---|
Quoted in active markets: | \u00a0 | \u00a0 |
Equity securities | 22% | 17% |
Fixed-income securities | 53% | 50% |
Real estate | 1% | 2% |
Other | 2% | 0% |
Not quoted in active markets: | \u00a0 | \u00a0 |
Fixed-income securities | 14% | 13% |
Other | 8% | 18% |
The strategic asset allocations of the defined benefit plans at year-end 2025 were as follows:
\u20ac\u00a0million | Getronics UK |
|---|---|
Equity securities | 20% |
Fixed-income securities (including inflation-linked bonds) | 60% |
Other | 20% |
Total | 100% |
The Getronics UK pension fund maintains liability hedge ratios on a technical provision basis of 100% of assets for both interest rate and inflation exposure, resulting in higher hedge ratios as its funded status improves. As the UK pension fund invests in global investment funds, a minimal part of these investments could be related to KPN equities. The pension funds do not have direct investments in KPN equities.
In 2025, the total employer\u2019s contributions and benefit payments for all defined benefit and defined contribution plans amounted to \u20ac102m, consisting of \u20ac92m in employer\u2019s premiums for defined contribution plans, \u20ac9m in contributions for funded defined benefit plans and \u20ac1m in payments for unfunded plans.
The amount of employer\u2019s contributions in 2026 for remaining defined benefit pension plans is estimated to be \u20ac5m for the funded plan (UK pension plan) and \u20ac1m for the unfunded plan (early retirement plan). The total amount of employer\u2019s premiums to be paid in 2026 for the defined contribution plans is estimated to be \u20ac96m.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Restructuring provision | 20 | 19 |
Asset retirement obligations | 92 | 77 |
Other provisions | 33 | 38 |
Total provisions for other liabilities and charges | 145 | 134 |
> of which: current | 30 | 29 |
> of which: non-current | 115 | 105 |
\u20ac\u00a0million | Personnel | Contractual | Total restructuring | Asset retirement obligation | Other provisions | Total provisions |
|---|---|---|---|---|---|---|
Balance at 1 January 2024 | 22 | 2 | 24 | 75 | 36 | 135 |
of which: current portion | 22 | 1 | 23 | 4 | 5 | 32 |
Additions | 28 | - | 28 | 6 | 9 | 43 |
Releases | - | - | - | -1 | -1 | -2 |
Usage | -33 | -1 | -34 | -3 | -6 | -42 |
Balance at 31 December 2024 | 17 | 1 | 19 | 77 | 38 | 134 |
of which: current portion | 17 | 1 | 18 | 4 | 7 | 29 |
Additions | 37 | - | 37 | 13 | 5 | 55 |
Releases | - | - | - | -9 | -2 | -12 |
Usage | -35 | -1 | -35 | -2 | -8 | -46 |
Changes in consolidation1 | - | - | - | 13 | - | 13 |
Balance at 31 December 2025 | 19 | 1 | 20 | 92 | 33 | 145 |
< 1 year | 18 | 1 | 19 | 5 | 6 | 30 |
1-5 years | 1 | - | 1 | 13 | 7 | 20 |
> 5 years | - | - | - | 74 | 20 | 94 |
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
The provision for asset retirement obligations (ARO) relates to radio sites and leased buildings and is based on assumptions of the estimated costs of removal, discount rate and estimated period of removal, which vary per type of asset. In 2025, \u20ac13m was added to the ARO provision (2024: \u20ac6m) and \u20ac9m was released (2024: \u20ac1m). Of the addition to the ARO provision in 2025, \u20ac12m was recognized as an increase in the carrying value of the capitalized asset retirement costs (ARC), which is included in Property, plant and equipment (2024: \u20ac5m). Of the release of the ARO provision in 2025, \u20ac9m was recognized as a decrease in the carrying value of the ARC (2024: \u20ac0).
As defined in the Telecommunications Act, the obligation for landlords to tolerate cables terminates as soon as those cables have been idle for a continuous period of 10 years. The covenant the telecoms sector concluded with a representation of landlords (\"Uitvoeringsafspraken Verwijderen Ongebruikte Telecomkabels\") states there must be a clear usefulness and necessity to remove the copper cables, also taking into account the expected costs of the removal operation. There are major uncertainties as to (1) whether and when landlords will place a reasonable request for removal of idle cables that meet the conditions of the covenant and (2) the amount and timing of any outflow. In our opinion, it is therefore not possible to make a reliable estimate of the amount that is required to meet the obligation and hence no provision for future claims was recognized at 31 December 2025 nor at 31 December 2024. There were also no material actual claims that need provisioning.
This includes provisions for claims and litigations, onerous contracts and warranties, and provisions for long-term obligations to employees related to jubilee or other long-service employee benefits, long-term disability benefits and, if they are not fully payable within 12 months after the end of the period, bonuses and deferred compensation. The expected costs of these benefits are accrued over the period of employment using an accounting method similar to that for defined benefit pension plans, except that actuarial gains and losses and past-service costs are recognized immediately in the P&L.
Provisions for asset retirement obligations, restructuring costs and legal claims are recognized when KPN has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, these positions are classified as contingent liabilities, unless the cash outflow is considered remote.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure required to settle the present obligation at balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.
The liability recognized in respect of all pension and early retirement plans that qualify as a defined benefit obligation is the present value of the defined benefit obligation less the fair value of plan assets. KPN uses actuarial calculations (projected unit credit method) to measure the obligations and the costs. For the calculation, actuarial assumptions are made about demographic variables (such as employee turnover and mortality) and financial variables (such as future indexation and the discount rate). The discount rate is determined by reference to market rates. These are interest rates of high-quality corporate bonds that are denominated in the currency in which the benefit will be paid and that have terms to maturity approximating the terms of the related liability. A net defined benefit asset may arise where a defined benefit plan has been overfunded. KPN recognizes a net defined benefit asset in such a case only when future economic benefits are available to KPN in the form of a reduction in future contributions or a cash refund. Actuarial gains and losses are recognized immediately in OCI.
Past service costs, curtailments and settlements are recognized immediately in the P&L.
The amount of pension costs included in operating expenses with respect to defined benefit plans consists of service cost, past service costs, curtailments and settlements, and administration costs. Net interest on the net defined benefit liability is presented as part of finance costs.
For pension plans that qualify as a defined contribution plan, KPN recognizes contributions as an expense when an employee has rendered service in exchange for those contributions.
Provisions for asset retirement obligations, restructuring costs and legal claims are recognized when KPN has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When these criteria are not met, these positions are classified as contingent liabilities, unless the cash outflow is considered remote.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure required to settle the present obligation at balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.
Employee redundancy costs are payable when employment is terminated before the normal retirement date, or whenever an employee accepts redundancy in exchange for these benefits.
Termination benefits are recognized when KPN is demonstrably committed either to terminating employment according to a detailed formal plan without the possibility of withdrawal or to providing termination benefits as a result of an individual and accepted offer. Benefits falling due more than 12 months after 31 December are discounted to present value.
At the commencement date of a lease (i.e. the date on which the underlying asset of the lease is available for use by KPN), KPN recognizes a lease liability measured at the present value of future lease payments to be made over the term of the lease. This includes fixed fees (including in-substance fixed payments), lease incentives (such as rent-free periods or fee discounts), variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. KPN does not have purchase options to be taken into account. Penalties for early termination of a lease are not included when KPN is reasonably certain that the related early termination will not take place.
All KPN contracts that contain variable lease payments depend on a consumer price index or a rate. However, should other types of fees occur, these variable fees will be accounted for in the operating expenses.
After the commencement date, the lease liabilities increase due to the accrual of interest and decrease due to the payments of fees due. The lease liabilities are remeasured when a change occurs in fees due, the lease term is deemed reasonably certain and/or there are changes to the scope of a lease. Upon remeasurement of the lease liability of a contract, the applied discount rate (incremental borrowing rate) is revised unless the remeasurement relates to a fee change following a change in the consumer price index or rate.
The total lease liability recognized is split into a non-current and a current portion. The current lease liabilities reflect only the part of the payments due within one year related to the repayment of the total lease liabilities.
KPN determines the lease term as the non-cancelable term of a contract together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it is reasonably certain not to be exercised.
KPN applies judgment when assessing if the use of an option is reasonably certain. Factors included are KPN\u2019s asset and network strategy, technological developments, and other circumstances that may impose an economic incentive affecting the expected use of an underlying asset. For vehicles, renewal options are not included in the initial assessment of the lease term as KPN\u2019s policy prescribes the return of vehicles to the lessor at the end of the lease term.
After the commencement of a lease, KPN reassesses the lease term if there is a significant event or change in circumstances that is within KPN\u2019s control and affects KPN\u2019s ability to exercise or not to exercise the option to renew or to terminate a lease.
The implicit discount rates of KPN\u2019s leases are not readily available, with the exception of vehicles. KPN applies its applicable incremental borrowing rate to determine the discounted value of the lease liabilities. Upon modification of a lease, the lease liability is remeasured using the applicable discount rate at the date of the remeasurement. KPN\u2019s incremental borrowing rates are mainly determined using a risk-free rate combined with a spread reflecting KPN\u2019s credit risk. The applicable rate per contract is primarily dependent on the total expected term of a lease at its commencement date (new leases) or the total expected remaining lease term in the event of a remeasurement of a lease.
Right-of-use assets are recognized at the commencement date of a lease as counterpart to the lease liabilities. The right-of-use assets are measured at cost, less accumulated depreciation and impairment losses, and adjusted for any remeasurement in the corresponding lease liabilities. The cost of the right-of-use assets includes the initially recognized amount of the corresponding lease liabilities, initial direct costs incurred in obtaining the lease (if any) and lease payments made at or before commencement of the lease. Lease incentives received are deducted from the carrying value of the right-of-use assets.
The right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Right-of-use assets are subject to impairment.
KPN does not apply the practical expedients for low-value leases (leases of an underlying asset with a value of less than \u20ac5,000) and short-term leases (leases with a total expected term of less than 12 months) except for short-term rental vehicles.
For vehicle leases, KPN applies the practical expedient not to separate non-lease components from lease components. Therefore, the full monthly lease fees are reflected in KPN\u2019s statement of financial position. For all types of leased assets, electricity and fuel-related expenses remain part of operating expenses.
Leases where KPN as lessor retains a significant portion of the risk and rewards of ownership of the lease asset are classified as operating leases. The assets remain on the balance sheet and are depreciated over the assets\u2019 useful life.
Lease payments received from lessees are recognized as revenue on a straight-line basis over the lease period.
If KPN acts as a lessor in a finance lease, the transaction is accounted for as a normal sale and the present value of the lease payments to be received is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is deferred and recognized as interest over the lease term.
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Trade payables | 696 | - | 600 | - |
Accrued interest | 100 | - | 99 | - |
Accrued expenses | 312 | - | 341 | - |
Social security and other taxes payable | 210 | - | 217 | - |
Other payables | 38 | 36 | 22 | 23 |
Total | 1,357 | 36 | 1,278 | 23 |
Some of KPN\u2019s suppliers participate in supplier finance arrangements giving suppliers the opportunity to receive earlier payment (from a financial institution), without modifying KPN\u2019s payment terms, or providing KPN with an extended payment period. As the payment terms under these arrangements do not materially deviate from customary payment terms in the industry or from the terms agreed with suppliers who do not participate in these arrangements, the related liabilities are classified as trade and other payables, and payments are classified as operating cash flow. The supplier finance arrangements do not impact covenants or KPN\u2019s access to (future) borrowings from financial institutions.
\u20ac\u00a0million | 31 December 2025 | 31 December 2024 |
|---|---|---|
Carrying amount of liabilities that are part of supplier finance arrangements | \u00a0 | \u00a0 |
Presented within trade payables | 260 | 264 |
Of which suppliers have been paid by finance providers | 196 | 215 |
Range of payment due dates (days after the invoice date) | \u00a0 | \u00a0 |
Liabilities that are part of the arrangements | 30-90 days | 30-90 days |
Comparable trade payables that are not part of the arrangements | 30-90 days | 30-90 days |
| \u00a0 | 31 December 2025 | 31 December 2024 | ||
|---|---|---|---|---|
\u20ac\u00a0million | Current | Non-current | Current | Non-current |
Trade payables | 696 | - | 600 | - |
Accrued interest | 100 | - | 99 | - |
Accrued expenses | 312 | - | 341 | - |
Social security and other taxes payable | 210 | - | 217 | - |
Other payables | 38 | 36 | 22 | 23 |
Total | 1,357 | 36 | 1,278 | 23 |
Trade and other payables are classified as \"borrowings\" within KPN\u2019s financial liabilities. For the accounting policy, see Note 13.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
Trade and other payables are classified as \"borrowings\" within KPN\u2019s financial liabilities. For the accounting policy, see Note 13.
Contract liabilities are recognized in the statement of financial position for considerations received in respect of unsatisfied performance obligations. Contract liabilities are recognized as revenue when KPN performs under the contract.
\u20ac\u00a0million | 2025 | 2024 |
|---|---|---|
Recognized amounts of identifiable assets acquired and liabilities assumed: | \u00a0 | \u00a0 |
Intangible assets | 153 | 99 |
Property, plant and equipment | 116 | 9 |
RoU assets | 54 | - |
Trade and other receivables, prepayments and accrued income | 46 | 9 |
Net cash and cash equivalents | 15 | 17 |
Non-current liabilities | -162 | - |
Deferred income tax liability | -46 | -25 |
Trade and other payables and accrued expenses | -74 | -19 |
Total net assets | 102 | 91 |
Non-controlling interest at fair value | -50 | - |
Total net assets at fair value acquired | 52 | 91 |
Total consideration | 148 | 217 |
Contingent cash consideration | - | 9 |
Total consideration | 148 | 226 |
Goodwill | 95 | 135 |
On 13 February 2025, KPN and ABP completed the transaction resulting in the creation of a new open tower company, named Althio B.V. (\"Althio\"). The transaction was approved by the ACM on 6 February 2025. KPN holds 51% of the shares in Althio, while the remaining 49% shares are owned by Stichting Depositary APG Infrastructure Pool 2016, an investment entity managed by ABP.
Following the transaction, Althio holds the combined passive mobile infrastructure of KPN as well as those of NOVEC and OTC (portfolio companies previously owned by TenneT and ABP respectively). This combined portfolio comprises of approximately 3,800 towers and rooftops throughout the Netherlands. This strategic partnership is in line with KPN\u2019s Connect, Activate & Grow strategy to optimize the value of its passive infrastructure assets and retain strategic flexibility. Through the creation of Althio, KPN gains higher flexibility over a substantial part of its mobile sites, enabling strategic synergies regarding the deployment, maintenance, and optimization of the network infrastructure. As part of the transaction some existing lease conditions were reset. Althio and KPN entered into a long-term master service agreement (MSA), stipulating the terms under which KPN will continue to be a tenant of Althio for an initial period of 20 years. Althio also holds a build-to-suit commitment for the next 10 years from KPN to provide (additional) coverage from its existing sites or to acquire or build new sites.
KPN has assessed that it has control over Althio. The assessment includes, among other factors, the following:
KPN's influence on Althio's relevant activities through KPN's presence in the governance structure;
KPN has a majority of the voting rights and has the right to direct key operational and financial decisions.
The transaction resulted in a cash payment of \u20ac113m and a non cash-payment in the form of a demerger of KPN's passive mobile infrastructure to Althio in exchange for a controlling 51% interest in Althio. This demerger has been treated as the sale of a subsidiary without the loss of control. KPN recognized a book gain of \u20ac54m directly in equity for the disposal of 49% of its passive mobile infrastructure, effectively, of which the fair value is \u20ac72m.
KPN was lessee to a substantial number of sites owned and operated by OTC, NOVEC and their subsidiaries (all acting as lessors). These leases were subject to various framework agreements between KPN and the OTC/NOVEC legal entities. One of the elements of the transaction was a full reset and harmonization of these contracts (as well as a reset of the lease fees). The parties agreed to terminate the existing lease contracts and enter into a new master service agreement (MSA). This part of the transaction was subject to the requirements of IFRS 3.51 & 52 (settlement of pre-existing relationships). The fair value of the termination of the old lease contracts is \u20ac52m which was validated by an external valuator based on the present value of the difference in estimated future cash flows calculated over the portfolio. This amount was recognized as an operating expense and included in \"depreciation, amortization and impairments\" in the consolidated statement of profit or loss, together with a gain of \u20ac8m due to the settlement of the liabilities and impairment of the right-of-use asset related to the existing lease contracts.
KPN performed a purchase price allocation of the acquired passive mobile infrastructure of NOVEC and OTC amounting to \u20ac148m. The total consideration in the purchase price allocation consists of the cash payment of \u20ac113m, the fair value of \u20ac72m of KPN's passive mobile infrastructure effectively disposed less the amount of \u20ac52m allocated to the termination of the existing lease contracts. In addition, KPN will make a capital contribution of \u20ac14m. The purchase price allocation of the acquired passive mobile infrastructure of NOVEC and OTC is as stated in the table.
The goodwill of \u20ac115m reported as at 30 June 2025 was provisional, as the Purchase Price Allocation (PPA) had not yet been finalized. Goodwill is reduced with \u20ac20m for a capital contribution KPN is obliged to make and due to a reduction of the non-cash payment in the form of the demerger of KPN\u2019s passive mobile infrastructure to Althio with \u20ac28m. The latter is due to adverse changes in the (projected) performance of that business which had not yet been taken into account in determining the fair value of KPN's passive mobile infrastructure demerged to Althio.
The fair values of the identifiable assets acquired and liabilities assumed were determined using valuation techniques that require significant judgment. External valuation specialists assisted management in applying discounted cash flow models and market-based approaches. Key assumptions included expected future cash flows and discount rates. The intangible assets consist of the recognition of the external customer base of OTC and NOVEC (\u20ac153m), so excluding KPN. The goodwill recognized is based on the partial goodwill method and relates to future cash flows to be realized from transactions with KPN and additional external customers and from cost savings. This goodwill is not tax deductible.
The transaction costs amount to \u20ac12m and were recognized as operating expenses.
Considering the fact that the transaction was negotiated as a single package and that the total consideration consists of a non-cash and a cash part, it is not practically possible to allocate the latter to the separate elements of the transaction. Therefore, the full amount of the cash payment, net of cash acquired, is classified in the consolidated statement of cash flows as \"acquisition of and investments in subsidiaries, associates and joint ventures\", as part of cash flows from investing activities.
The acquisition had a net impact of \u20ac24m on KPN\u2019s Group revenues. The net impact on EBITDA AL was \u20ac24m, excluding the aforementioned lease settlement expense and transaction and implementation costs. If the acquisition had taken place at the beginning of the year, the net impact on KPN\u2019s Group revenues would have been approximately \u20ac26m and on EBITDA AL approximately \u20ac27m. The lower external lease expenses (with the former OTC and NOVEC entities) are partly offset by the external costs of the former OTC and NOVEC entities.
On 4 April 2024, KPN acquired 100% of the shares in Youfone Nederland B.V. and Youfone Zakelijk B.V. (together referred to as \"Youfone\").
Youfone is a fast-growing telecoms operator, that was already active on KPN\u2019s network. With this acquisition, KPN strengthens its position in the mobile and broadband markets, especially in the faster-growing no-frills segments. Youfone Nederland is included in KPN\u2019s Consumer segment and has added approximately 499,000 postpaid and 56,000 broadband customers to the segment's customer base. Youfone Zakelijk is included in KPN\u2019s Business segment and has added approximately 42,000 customers to the SME customer base. KPN and Youfone expect to achieve further growth in the coming years by continuing the efficient operating model that Youfone has been able to successfully implement. The goodwill relates to these expected future benefits.
The transaction resulted in a net cash outflow of \u20ac190m in 2024, classified as cash flow from investing activities in the consolidated statement of cash flows. This amount consists of the cash consideration paid for the shares (\u20ac207m) less cash acquired (\u20ac17m). The transaction costs amounted to less than \u20ac1m and were recognized in the P&L.
The purchase price allocation resulted in the recognition of customer bases (\u20ac90m), trade names (\u20ac7m), a deferred tax liability (\u20ac25m), an earn-out provision (\u20ac9m) and goodwill (\u20ac134m). The amount of goodwill deductible for tax purposes is \u20ac0.2m. The earn-out paid in 2025 amounts to \u20ac7m.
On 11 January 2024, KPN purchased the fiber networks of Co\u00f6peratie Glasvezel Noord U.A., located in the northern part of the Netherlands, adding approximately 3,700 homes passed to KPN\u2019s fiber footprint. The net assets and activities were added to KPN\u2019s segment Networks, Operations & IT (NOI). The transaction resulted in a net cash outflow of \u20ac10m in 2024, classified as cash flow from investing activities in the consolidated statement of cash flows. The transaction costs amounted to nil. The transaction was classified as a business combination. The purchase price allocation resulted in the recognition of tangible fixed assets (fiber networks, \u20ac8m), a customer base (\u20ac1m), and goodwill (\u20ac1m). The impact of the acquisition on KPN\u2019s Group revenues and EBITDA AL is negligible.
The net cash outflow related to acquisition of and investments in subsidiaries, associates and joint ventures (net of acquired cash) was \u20ac172m in 2025 (2024: \u20ac213m). This amount includes the net cash consideration related to the acquisition of Althio (\u20ac98m), the earn-out of Youfone (\u20ac7m), additional share premium contributions to Glaspoort (\u20ac56m, see Note 12), transaction costs and payments related to acquisitions of smaller investments in associates. The net cash outflow of 2024 (\u20ac213m) included the net cash consideration related to the acquisition of Youfone (\u20ac190m), additional share premium contributions to Glaspoort (\u20ac20m, see Note 12) and payments related to acquisitions of smaller investments in associates.
The net cash inflow from disposal of subsidiaries and associates was \u20ac40m in 2025 (2024: \u20ac26m). This consists of the received deferred payment of \u20ac41m related to Glaspoort (2024: \u20ac26m, see Note 13.1).
KPN uses the acquisition method to account for business combinations. The consideration paid is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange.
Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date. When a business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in the P&L.
Contingent considerations are recognized at fair value at acquisition date and subsequent changes to the fair value are recognized in the P&L. Contingent considerations classified as equity are not remeasured and subsequent settlement is counted for within equity.
For each business combination, KPN elects to recognize any non-controlling interest in the acquiree either at fair value or at the proportionate share in the acquiree\u2019s net assets.
Acquisition-related costs are expensed as incurred.
The excess of the consideration paid, non-controlling interests recognized and the acquisition date fair value of any previous equity interests in the acquiree over the fair value of KPN\u2019s share of the net assets acquired is recorded as goodwill. If negative goodwill occurs (bargain purchase), the difference is recognized directly in the P&L.
During 2025 and 2024, no subsidiaries were sold.
Name of significant subsidiaries and other principal interests | Country of incorporation |
|---|---|
KPN B.V. | Netherlands |
- Althio B.V. | Netherlands |
- Broadband Hosting B.V. | Netherlands |
- E-Zorg B.V. | Netherlands |
- Glaspoort B.V. | Netherlands |
- GroupIT B.V. | Netherlands |
- RoutIT B.V. | Netherlands |
- Inspark Holding B.V. | Netherlands |
- InSpark B.V. | Netherlands |
- KPN Finance B.V. | Netherlands |
- Reggefiber Group B.V. | Netherlands |
- Reggefiber Operator B.V. | Netherlands |
- Reggefiber ttH B.V. | Netherlands |
- Netwerk Exploitatiemaatschappij B.V. | Netherlands |
- Solcon Internetdiensten B.V. | Netherlands |
- Youfone Nederland B.V. | Netherlands |
- Youfone Zakelijk B.V. | Netherlands |
KPN Mobile Holding B.V. | Netherlands |
- KPN Mobile N.V. | Netherlands |
KPN Ventures B.V. | Netherlands |
Getronics B.V. | Netherlands |
- Getronics Finance Holdings B.V. | Netherlands |
- Getronics Pensions UK Ltd. | UK |
- Getronics US Operations, Inc. | US |
KPN Insurance Company DAC | Ireland |
The percentage ownership/voting interest of these entities is 100%, except for:
Althio B.V. (51% interest)
Joint venture Glaspoort B.V. (50% interest)
KPN uses the acquisition method to account for business combinations. The consideration paid is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of exchange.
Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date. When a business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in the P&L.
Contingent considerations are recognized at fair value at acquisition date and subsequent changes to the fair value are recognized in the P&L. Contingent considerations classified as equity are not remeasured and subsequent settlement is counted for within equity.
For each business combination, KPN elects to recognize any non-controlling interest in the acquiree either at fair value or at the proportionate share in the acquiree\u2019s net assets.
Acquisition-related costs are expensed as incurred.
The excess of the consideration paid, non-controlling interests recognized and the acquisition date fair value of any previous equity interests in the acquiree over the fair value of KPN\u2019s share of the net assets acquired is recorded as goodwill. If negative goodwill occurs (bargain purchase), the difference is recognized directly in the P&L.
KPN is involved in a number of legal and tax proceedings that have arisen in the ordinary course of its business and in discontinued operations, including commercial, regulatory and other proceedings. Periodically, KPN carefully assesses the likelihood that legal and tax proceedings may lead to a cash in- or outflow. KPN recognizes provisions in case of a cash outflow if and when the chance is estimated as probable and a reliable estimate of the cash outflow can be made. KPN recognizes the assets in case of a cash inflow if and when the chance is estimated as virtually certain. When these criteria are not met, such matters are classified as contingent assets or liabilities, unless the cash inflow is considered possible or the cash outflow is considered remote.
However, the outcome of such proceedings can be difficult to predict with certainty and KPN can offer no assurances. In some cases, the impact of a legal proceeding may be more strategic than financial or such impact cannot properly be quantified. A description is given below of legal-related contingent assets and liabilities that could have a material impact for KPN.
See Note 18 for a contingent liability related to idle cables and the accounting policy for provisions.
A pending claim by a customer regarding the validity of certain clauses in our general terms & conditions for consumers could impact our ability to amend our tariffs for consumers, potentially also with retroactive effect.
In KPN\u2019s Articles of Association and in a further decision by the Board of Management, which was approved by the Supervisory Board, KPN has indemnified the members and former members of KPN\u2019s Board of Management and Supervisory Board, as well as a number of KPN\u2019s officers and directors and former officers and directors, against liabilities, claims, judgements, fines and penalties incurred by such officers or directors as a result of any threatened, pending or completed action, investigation or proceeding (whether civil, criminal or administrative) brought by a third party in relation to acts or omissions in or related to their capacity as officer or director. The indemnification does not apply to claims and expenses reimbursed by insurers nor to an officer or a director adjudged to be liable for willful misconduct (\"opzet\") or intentional recklessness (\"bewuste roekeloosheid\").
On 3 February 2026, KPN successfully issued a 3.500% \u20ac500m senior unsecured bond maturing on 12 May 2034. Part of the proceeds of the new bond have been used to finance a tender offer to repurchase and cancel part of KPN\u2019s two outstanding GBP denominated senior unsecured bonds due in November 2026 and September 2029. KPN repurchased \u00a396m notional amount of the bonds due November 2026 and \u00a3182m notional amount of the bonds due September 2029. The total tender consideration was approximately \u00a3295m and settlement took place on 13 February 2026.\u00a0\u00a0\u00a0