Telefonica 4Q Earnings Dropped on Restructuring Costs, Forex
21 February 2019 - 6:17PM
Dow Jones News
By Nathan Allen
Telefonica SA (TEF.MC) said Thursday that net profit fell in the
fourth quarter, in part as a result of unfavorable currency swings
and restructuring costs.
The Spanish telecom said net profit fell to 610 million euros
($692.1 million) from EUR693 million a year earlier.
Telefonica booked EUR651 million in one-off costs in the
quarter, including EUR262 million in restructuring costs and a
EUR242 million writedown of goodwill associated with its Mexican
business.
Revenue dropped to EUR12.92 billion from EUR13.16 billion, the
company said. However, in organic terms revenue grew 3% in the
quarter, the company said.
Analysts had forecast net profit of EUR813.7 million on sales of
EUR12.46 billion, according to a FactSet-compiled consensus.
Operating income before depreciation and amortization fell 9.6%
to EUR3.54 billion.
Telefonica declared a dividend of EUR0.40 a share, unchanged
from 2018.
For 2019 Telefonica said it expects revenue and Oibda growth of
around 2%.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
February 21, 2019 02:02 ET (07:02 GMT)
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