Telefonica Posts 4Q Net Profit of $153 Million -- Update
February 23 2017 - 3:05AM
Dow Jones News
By Jeannette Neumann
MADRID--Spanish telecommunications giant Telefonica SA (TEF)
swung to a profit in the fourth quarter after booking major
restructuring costs a year earlier.
The Madrid-based company Thursday said fourth-quarter net profit
was 145 million euros ($153 million) versus a EUR2.2 billion loss a
year earlier, when the company booked provisions to cover voluntary
buyouts for its employees in Spain.
Revenue in the fourth quarter was EUR13.7 billion, a 1% decrease
from the year earlier period. Analysts had estimated sales of
EUR13.6 billion in the quarter, according to data provider
FactSet.
Operating income excluding depreciation and amortization was
EUR3.2 billion in the quarter versus EUR721 million a year earlier.
Analysts had estimated OIBDA of EUR3.1 billion in the quarter,
according to FactSet.
Telefonica Executive Chairman Jose Maria Alvarez-Pallete said in
a statement that the company expects 2017 will see "similar
operating trends: revenue stability despite higher regulatory
impacts, mainly in European markets, OIBDA margin expansion and
lower CapEx intensity."
Telefonica's net debt decreased by EUR998 million to EUR48.6
billion in the fourth quarter compared to the third quarter.
As part of its reduction drive, Telefónica on Tuesday announced
that it had agreed to sell up to 40% of its Telxius infrastructure
unit to KKR & Co. for EUR1.28 billion, or EUR12.75 a share.
The unit owns and operates around 16,000 telecommunications
towers in five countries and around 31,000 kilometers (19,263
miles) of submarine fiber optic cables. Telefonica had tried to
float Telxius last year but failed because of weak investor
demand.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
February 23, 2017 02:50 ET (07:50 GMT)
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