UPDATE 2-KPN bullish on second half after cost cuts drive earnings beat

miércoles 30 de julio de 2014 04:21 GYT
 

* Q2 core profit 633 mln euros vs 626 mln expected

* Says made cost savings of 75 mln euros in first half

* Keeps 2014 outlook, aims to pay small dividend (Adds CEO comments)

By Robert-Jan Bartunek

BRUSSELS, July 30 (Reuters) - Dutch telecoms group KPN said on Wednesday its second half results would beat the first half, after strict cost cutting helped second quarter profits beat expectations.

The group, which in 2013 fended off a takeover bid by top shareholder America Movil - controlled by billionaire Carlos Slim, has faced stiff competition in its domestic market but repeated its results would stabilise by the end of 2014.

"We expect the results in the second half to be better than those in the first, so in that sense you could speak of a trough or that we have passed it," chief executive Eelco Blok said on a conference call.

KPN's shares rose as much as 4.6 percent, making it the top performer on the STOXX 600 European Telecoms Index.

In the second quarter, group core profit fell 19 percent to 633 million euros, above the 626 million expected in a Reuters poll of seven analysts.   Continuación...