Telefonica Q2 Profit Rises, Revenues Down; Backs FY18 Revenue Growth View

(RTTNews) - Spanish telecom group Telefonica SA (TDE.L, TEF) reported Thursday that its second-quarter net income attributable to equity holders of the parent increased 9.9 percent to 902 million euros from last year's 821 million euros.

Earnings per share grew 11% to 0.16 euro from 0.15 euro a year ago.

In underlying terms, net profit decreased 2.1%. Underlying earnings per share were 0.20 euro.

Operating Income increased 14.4 percent to 2.06 billion euros, and OIBDA increased 1.9 percent to 4.24 billion euros. OIBDA margin expanded by 2.8 percentage points to 34.9%.

Underlying OIBDA dropped 4.7 percent to 4.00 billion euros.

Revenues were 12.14 billion euros, down 6.3% from 12.96 billion euros last year. Organically, revenues grew 2% backed by the strong pace of growth from handset sales and the positive performance of service revenues.

Mobile data revenues increased in the quarter by 6.4% in organic terms

Further, the company reiterated its guidance and the dividend announced for 2018.

For 2018, the company still expects revenues growth to be around 1% compared to 2017, despite the negative impact from regulation, of approximately 0.9 p.p.