TEF Telefonica SA

By Adria Calatayud

Telefonica on Thursday said it is on track to meet its financial objectives for 2023 after it reported first-quarter earnings that fell despite higher revenue but were slightly ahead of expectations.

The Spanish telecommunications company said operating income before depreciation and amortization--a key profitability metric--was 3.12 billion euros ($3.43 billion) in the quarter, down from EUR3.20 billion in the same period last year, as it was hit by declines in its Spanish and Latin American businesses.

Telefonica said Oibda grew 1.1% on an organic basis.

Quarterly net profit fell to EUR298 million from EUR706 million a year before. The company attributed the profit decline to a gain it booked in the first quarter of 2022 on its Colombia business, a decline in the valuation of investments and higher taxes.

Telefonica said revenue for the quarter grew 6.7% to EUR10.045 billion, with positive contributions from all regions and business units.

Analysts expected Telefonica to post quarterly Oibda of EUR3.08 billion on revenue of EUR9.74 billion, according to consensus estimates provided by the company.

For 2023 as a whole, Telefonica said it continues to expect growth in the low single-digit percentage range in both revenue and Oibda on an organic basis.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

May 11, 2023 01:59 ET (05:59 GMT)

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