KPN to invest more than 5 billion euros in Netherlands by 2030, raise dividends
KPN shop is seen at its headquarters in Rotterdam, Netherlands, January 30, 2019. REUTERS/Piroschka van de Wouw
KPN plans to invest more than 5 billion euros ($5.83 billion) in the Netherlands through 2030, focusing on fibre-optic networks, 5G, artificial intelligence and cybersecurity, the Dutch telecoms group said on Wednesday.
The company said it would raise dividend payouts to shareholders from 2026, distributing 80 per cent of free cash flow as dividends.
KPN set dividends at 0.20 euro per share in 2026 and 0.25 euro per share in 2027.
The company's shares rose 1.7 per cent at 0815 GMT against a bearish pan-european STOXX index, which fell about 0.3 per cent.
The group delayed its cost-cutting target, now aiming to save 100 million euros in annual operating costs by 2030 instead of 2025.
Capital spending is projected to fall below 1 billion euros in 2027 before stabilising, the company said.
KPN, which already connects 70 per cent of Dutch households with fibre, said it would lift its previous plan and aim to reach 85 per cent by 2030, from 80 per cent by 2026.
The telecom operator added that it is working with the Dutch government and private partners to develop independent cloud infrastructure.
($1 = 0.8575 euros)
