Netherlands-based operator KPN is planning to cut its dividend after second quarter earnings were hit by a drop in sales and restructuring costs.

As a result, the company's net profit during the three-month period stood at €315 million, which is down from €414 million in the same period of last year.

Revenues also fell by three percent to reach €3.2 billion.

With this in mind, CEO Eelco Blok outlined how the firm's dividend will have to fall from €0.90 to €0.35 per share.

"We don't take this pre-emptive step lightly. The economic prospects in the Netherlands continue to be difficult and we are outside our financial framework range," he said in a statement.

Elsewhere, the company's interests in Germany and Belgium were the only areas that enjoyed growing sales during the second quarter, with annual rises of 4.9 percent and 6.7 percent respectively.

Blok added that the company will continue "a constructive dialogue" with América Móvil. 

The Latin-America-based operator is KPN's largest shareholder after acquiring roughly 28 percent in KPN last month.