KPN lowers its 2012 forecasts

Dutch telecom firm KPN has cut its core profit expectations for 2012 and scrapped a share buyback programme to pour money into its struggling domestic business. KPN, the largest telecommunications provider in the Netherlands, which has been trying to reverse falling revenues, profits and market share in its domestic fixed-line and mobile businesses, warned yesterday 2012 would be a “transition” year.

KPN, known for its generous annual €1bn share buyback programmes and healthy dividends, said it would invest “strategically” in its domestic infrastructure during current macro economic uncertainty and won't update the market on 2013 expectations until later in 2012. KPN reported fourth-quarter sales down 1.8 per cent to €3.375bn and core profit, or earnings before interest, tax, depreciation and amortisation, down 6.2 per cent to €1.316bn.