Telefonica Q1 net profit falls 58% on higher debt costs
2023.05.11 03:13
© Reuters. FILE PHOTO: The logo of Spanish Telecom company Telefonica is seen at its headquarters in Barcelona, Spain, May 12, 2022. REUTERS/Nacho Doce
MADRID (Reuters) -Spanish telecoms firm Telefonica (NYSE:) said on Thursday its first-quarter net profit fell 58% from the same period a year earlier to 298 million euros ($328 million) on higher debt costs.
The bottom line was affected by a 19% increase in debt costs to 667 million euros, Telefonica said, adding the company had booked a 200 million euro capital gain in the first quarter of 2022 on the sale of telecom infrastructure in Colombia.
Overall revenues rose 6.7% to 10.05 billion euros, the company added, while core earnings fell 2.4% to 3.12 billion euros.
A company-provided consensus of analysts saw net profit of 279 million euros, revenues of 9.74 billion euros and core earnings of 3.08 billion euros.
Telefonica said its net financial debt, which has weighed down its business and share price in the past, fell by 244 million euros to 26.44 billion euros.
It reiterated guidance for low single digit revenue growth in 2023 after a 4% increase last year.
($1 = 0.9084 euros)
