Telefónica suffers a 20% decrease in profit for the first quarter

Telefónica suffers a 20% decrease in profit for the first quarter

The Spanish telecommunications company Telefónica published on Thursday a net profit for the first quarter higher than expected by analysts, despite falling 20% ​​compared to the previous year, in a comparison affected by changes in the perimeter of the group.

The company said that its net profit was 706 million euros ($741.86 million), compared to 886 million a year ago, while operating income (OIBDA, according to the company’s accounting terminology) was 3,200 million and revenues of 9,410 million.

A survey of analysts provided by the company pointed to an average net profit of 470 million euros, an OIBDA of 2,960 million and revenues of 9,070 million.

In reported terms, revenues fell 9% and OIBDA 6.4%, although the company noted that organically (ie, excluding distortions introduced by divestments and mergers), revenues rose 3.2% and OIBDA 2.1%.

The company attributed the increase in revenue to its ability to adjust prices to inflation in most markets, to the favorable evolution of currencies and to the digitization of business services.

Telefónica reiterated its annual forecasts and the dividend for 2022.

(1 dollar =0.9517 euros)

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