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Telefonica underlying sales down 1.6%, net profit improves
2013-05-08 08:47:00| Telecompaper Headlines
(Telecompaper) Telefonica reported first-quarter revenues down 8.8 percent year-on-year to EUR 14.14 billion, hurt by exchange rate effects and divestments. On an organic basis, revenues fell just 1.6 percent, mainly due to cuts in termination rates. Latin America posted organic growth of 6.8 percent for revenues of EUR 7.23 billion, while Europe recorded a drop of 10.5 percent to EUR 6.68 billion. Group OIBDA fell 10.1 percent to EUR 4.57 billion and was down 0.1 percent on an organic basis, while net profit improved to EUR 902 million from EUR 748 million a year earlier, thanks to lower interest costs. Capex rose 13.4 percent to EUR 1.94 billion, as higher costs in Europe, primarily for spectrum in the UK, were offset by a 31 percent cut in spending in Latin America. Operating cash flow improved 9.6 percent to EUR 2.63 billion. Net debt was up by EUR 550 million compared to the end of 2012, at EUR 51.81 billion or 2.44 times OIBDA, due mainly to the Venezuelan Bolivar devaluation. However Telefonica said its recent refinancing meant its debt coming due was covered through 2014. The company reiterated its outlook for full-year results, for revenue growth, a lower OIBDA margin decline than the 1.4 percent drop in 2012, net debt of less than EUR 47 billion and capex at around 14 percent of sales.
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Category:Telecommunications