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Telefonica Q1 results drop on forex, Czech sale
2014-05-09 08:29:00| Telecompaper Headlines
(Telecompaper) Telefonica reported first-quarter revenues down 13.5 percent from a year earlier to EUR 12.232 billion, hurt by negative exchange rate effects and the sale of its Czech operations. OIBDA was down 14.0 percent to EUR 3.929 billion, and net profit fell 23.2 percent to EUR 692 million. Excluding the forex effects and change in scope, the operator reported revenues up 1.5 percent and OIBDA 0.5 percent higher on organic basis. Telefonica reduced capital expenditure by 19.9 percent compared to the year-earlier quarter to EUR 1.555 billion, mainly due to lower spending on spectrum. Net debt was cut by EUR 2.657 billion in Q1 to EUR 42.724 billion at the end of March, equal to 2.30x OIBDA. Telefonica said the organic growth shows its strategy of focusing on customer service and network quality is paying off. The company reiterated its full-year outlook for positive organic sales growth, a flat to slightly lower EBITDA margin, higher capex of 15.5-16 percent of revenues and net debt under EUR 43 billion by the end of 2014.
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Category:Telecommunications