Luigi Minerva

Inquired about the measures being taken to reverse the decline in the consumer Net Promoter Score (NPS) and asked whether the Large Corporate & Enterprise (LCE) segment is still expected to achieve positive growth in 2025 despite a marginal decline in Q1.

Answer

The NPS dip was influenced by external media discussions and internal operational issues, but management is confident in its ability to improve the score. For the LCE segment, the company still expects small positive service revenue growth for the full year, with a turnaround anticipated in the second half. The current pressure is mainly on mobile ARPU, which is being offset by growth in other areas like IoT.

Inquired about the capital allocation trade-off between share buybacks and the future consolidation of Glaspoort, and questioned the confidence level in the significant CapEx reduction planned for 2027, given potential future technology investment needs.

Answer

Executives stated they can afford both share buybacks and the Glaspoort consolidation, as the latter is not a cash-heavy event and leverage would remain within their target. They are highly confident in the 2027 CapEx step-down because it is directly tied to the controlled phasing out of the large-scale fiber rollout, and they are not underinvesting in other areas like 5G or edge computing.

Luigi Minerva questioned the pricing strategy in the Netherlands, noting VodafoneZiggo's 2.5% price increase is below KPN's 3.8% and asking for the rationale.

Answer

Executive Ritchy Drost stated the decision was driven by price-value perception. With inflation falling, the 2.5% increase was deemed appropriate to maintain balance and manage churn, as subscription cost is a key reason customers leave. Executive Michael Fries added that, unlike some competitors, VodafoneZiggo applies increases to both its front and back books, aiming for a more rational market.