KPN cuts costs to beat Q2 core profit expectations
BRUSSELS, July 30
BRUSSELS, July 30 (Reuters) - Dutch telecoms group KPN on Wednesday reported better-than-expected second-quarter core profit as a cost cutting programme partially made up for falling profitability in most units.
KPN said its "simplification programme" resulted in savings on operating and capital expenses of about 75 million euros ($100.5 million) in the first half, with 350 employees leaving the company.
The group announced in February that it would cut up to 2,000 jobs to stem falling profits.
Core profit fell 19 percent in the second quarter to 633 million euros, above the 626 million expected in a Reuters poll of seven analysts.
The group repeated its outlook that it expected its financial performance to stabilise towards the end of 2014 and said it would invest less than 1.4 billion euros in 2014 and less than 1.5 billion in 2015.
KPN added that, if the sale of its German unit E-Plus closed, it would restart paying a dividend of 0.07 euros for the 2014 financial year. ($1 = 0.7460 Euros) (Reporting by Robert-Jan Bartunek)