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Dutch KPN to buy back shares as quarterly earnings beat estimates

KPN logo is seen at its headquarters in Rotterdam, Netherlands, January 30, 2019. REUTERS/Piroschka van de Wouw

July 27 (Reuters) – Dutch telecom KPN (KPN.AS) said on Tuesday it intends to buy back shares worth 200 million euros ($235 million) as it posted second-quarter earnings above estimates and maintained guidance.

KPN reported second quarter adjusted earnings before interest, taxes, depreciation and amortisation after leases (EBITDA AL) of 589 million euros ($695 million), exceeding the 584 million expected in a company compiled poll.

“The confidence in our strategic plan and successful execution gives us comfort around our multi-year cash generation perspective, enabling us to structurally return additional capital to our shareholders”, Chief Executive Joost Farwerck said in a statement.

The company said the buyback is a first step in returning additional capital to shareholders, without disclosing any further details.

In November, KPN announced its growth strategy, which includes the company’s first investment in infrastructure in 26 years.

Citing its intention to execute the strategic plan, the Dutch company in May rejected a joint takeover bid by Sweden’s EQT (EQTAB.ST) and New York based Stonepeak, as well as another one by U.S. investment firm KKR (KKR.N).

“We are on track to reach our full year outlook”, Farwerck added.

KPN reported the first increase in its consumer mobile services revenues in four years, citing stable average revenue per unit in the business.

($1=0.8475 euros)

Reporting by Boleslaw Lasocki in Gdansk; Editing by Clarence Fernandez, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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