AMSTERDAM - 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 €315 million ($382 million), down from €414 million in the same period a year ago. Sales fell 3.0 per cent to €3.19 billion.
KPN CEO Eelco Blok said the company would cut its dividend from a proposed €0.90 to €0.30 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 per cent stake in KPN, although the company's management has advised shareholders not to tender their shares to his offers, including a €8 per share offer in June. Shares closed at €7.32 Monday.