Dutch Telecom Giant KPN Announced a Share Buyback Program

On Monday, Dutch telecom giant KPN made an important announcement. It announced a new share buyback program as well as a higher dividend over 2022, as KPN’s core profit rose on the back of growing mobile revenues.

The company said it would buy back 300 million euros ($335 million) worth of its shares this year. Dutch telecom giant expects to increase its dividend by 5% over this year. 

KPN’s Chief Executive Joost Farwerck commented on the company’s 2021 results in a statement. According to Farwerck, even though cost savings were moderate, productivity increased considerably, and improving service revenues supported growth in EBITDA. KPN’s free cash flow surpassed the company’s guidance. 

In the fourth quarter, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 4%. As a result, it reached 584 million euros, in line with analysts’ expectations. 

The largest telecom provider in the country said it expected core earnings to grow slightly again this year. The telecom giant expects core earnings to rise in 2022, as total revenues from corporate customers are set to stabilize toward the end of the year. 

Dutch telecom giant and European stocks

After discussing KPN’s announcement, we can discuss European stocks as well. On Monday, the last trading day of the month, they were higher as investors monitored political developments between Russia and Ukraine. Investors also kept an eye on inflation.

The pan-European Stoxx 600 index added 1% in early trade, with tech stocks jumping 2.2% to lead gains as most sectors and major bourses entered positive territory. 

When it comes to individual share price movement, Hexpol jumped 7% to lead the Stoxx 600. But BillerudKorsnäs was not so lucky. On the contrary, it dropped 3.2% after Citigroup cut its price target for the stock.