Telefonica S.A. (ADR) (NYSE:TEF)’s Unsatisfactory Results Follow Estimates on Spain Drop


Spain’s largest telephone firm Telefonica S.A. (ADR) (NYSE:TEF) announced on Wednesday that its Q1 earnings that lowered analysts’ predicts as competition hurt sales in Latin America and its home market.

The Madrid-based firm declared today in a statement that Operating income prior to depreciation and amortization dropped 10% from a year before 4.57B euros ($6B). Analysts anticipated Oibda of 4.75B euros, according to the average predicts of eight analysts in a Bloomberg survey.

The Net debt extended to 51.8B euros from 51.3B euros at the end of 2012. In March, CEO Cesar Alierta sold $1.3B of treasury stock and decided to sell the firm’s U.K. broadband and fixed-line phone division to British Sky Broadcasting Group Plc (BSY) for to the extent that 200M pounds ($310M).

Telefonica’s net income in the first quarter surged 21% from a year before to 902M euros as sales plunged 8.8% to 14.1B euros.

As the firm declared that in Latin America, markets including Brazil, Colombia and Chile, Telefonica’s Oibda plunged 9.6% to 2.31B euros as sales dropped 3.8%. That contrasts with an Oibda plunge of 6.4% to 2.35B euros at the phone carrier’s European division.

Financial review: Telefonica S.A. (ADR) (NYSE:TEF) settled at $14.64 by dropping 0.48% with traded volume of 1.7M against the average volume of 2.05 million.

The firm contributes with market capitalization of 21.98Bb. It sales were 81.77B while its net income was 5.15B.

At what time the earning measures took in the notice then Telefonica has past twelve months price to sales ratio was 0.82 and price to cash ratio remained 4.35. As far as the returns are concern, the TFE return on equity was recorded as 18.66% and surged 4.83% ROI while its return on asset stayed at 3.39%.


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