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Royal KPN earnings hit by EU roaming rules

Royal KPN NV KPN on Thursday reported third-quarter earnings before interest, tax, depreciation and amortization of 603 million euros ($713.5 million), missing consensus forecasts.

Ebitda were down 9.3% from the prior year and below the EUR632 million estimated by four analysts, according to FactSet.

The Dutch telecommunications company said the results reflect the introduction of regulations governing roaming charges within the European Union, resulting in an increase in data usage abroad.

KPN's revenue for the period came to EUR1.61 billion, down 6.6% on year. KPN said growth in its consumer unit was counteracted by lower business and wholesale revenue, due partly to tough competition and price pressure.

Operating profit fell 13% to EUR253 million. However, net profit more than doubled to EUR132 million, which KPN said was driven by reduced financial expenses compared to the year before, which included the costs of a bond tender.

KPN expects adjusted Ebitda to be in line with the 2016 figure, including an impact of about EUR40 million to EUR50 million from the roaming regulations.

For 2017, the company intends to pay a regular total dividend of 11 cents.

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