KPN to go ahead with buyback

Dutch telecoms company KPN reported a marginally lower-than-expected rise in profits yesterday but announced a further €1bn (£860m) share buyback plan as expected, thanks to strong cashflows. KPN also reaffirmed its outlook for 2011, saying it expects further growth in earnings and free cashflow, with capital expenditure of up to €2bn. The company’s revenue has come under pressure from mounting price competition and hopes for continued strong growth in data users on its Dutch network on the back of a surge in smartphones.