The Q1 numbers were in line with expectations with revenues up by 1.9% while the EBITDAaL was down by 1.6% due to higher energy costs. Capex was however stronger than expected, up by 15.5%. Although KPN can now be considered a long-term FCF growth story and plans to increase its dividend by 5% for 2023 we nonetheless maintain our Reduce on the stock (with no downside) as KPN currently offers a 4.4% dividend yield while Dutch rates are at 2.9%.