KPN Q2 earnings fall, cuts dividend

[July 24, 2012]  AMSTERDAM (AP) -- Royal KPN NV, the Dutch telecommunications company, says its earnings fell in the second quarter due to restructuring costs and declining sales, and it plans to reduce its 2012 dividend.

Net profit was euro315 million ($382 million), down from euro414 million in the same period a year ago. Sales fell 3.0 percent to euro3.19 billion.

KPN CEO Eelco Blok said the company would cut its dividend from a proposed euro0.90 to euro0.30 per share because the company has fallen out of the range of profitability it considers prudent.

Mexican billionaire Carlos Slim has gradually acquired a 28 percent stake in KPN, although the company's management has advised shareholders not to tender their shares to his offers, including a euro8 per share offer in June. Shares closed at euro7.32 Monday.

[Associated Press]

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