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Investing.com -- KPN outlined plans to invest more than 5 billion euros ($5.83 billion) in the Netherlands through 2030, focusing on expanding fibre-optic networks, 5G, artificial intelligence and cybersecurity. The Dutch telecom group reaffirmed its mid-term 3-3-7 financial targets.
Capital spending is expected decline to below 1 billion euros by 2027 and then stabilize, KPN said in a strategy update, reflecting a shift from network expansion to connecting and activating households.
The company, which currently covers around 70% of Dutch homes with fibre, aims to reach 85% by 2030. It is also working with the government and private partners to build independent cloud infrastructure.
“We are successfully delivering on our Connect, Activate and Grow strategy," said Chief Executive Joost Farwerck. "At the halfway point of our four-year plan, we have achieved market leadership in both fixed and mobile, further expanded our world-class quality networks, and maintained a clear financial trajectory.”
He added that the focus will now move toward value creation through customer connections, digital transformation, and efficiency.
The company delayed its cost-cutting target to 2030, aiming for 100 million euros in annual savings, while confirming cumulative shareholder distributions of up to 4 billion euros between 2024 and 2027. Beyond that, it targets mid-single-digit free cash flow growth through 2030, supporting continued increases in shareholder returns.
KPN also raised its dividend policy, planning to return 80% of free cash flow to shareholders from 2026, up from 2025 levels. The dividend per share is expected to rise to 0.20 euro in 2026 and 0.25 euro in 2027, implying a 14% annual growth rate between 2025 and 2027.