TEF Telefonica SA

   By Mauro Orru 
 

Telefonica SA's shares plunged Thursday after the company reported a net loss and a decline in revenue for the fourth quarter of 2019 following its pullout from some Latin American markets, the sale of 10 data centers and the depreciation of the Argentine peso against the euro.

The Spanish telecommunications company reported a net loss for the quarter of 202 million euros ($218.1 million) compared with a profit of EUR610 million the previous fourth quarter, while revenue for the period fell to EUR12.4 billion from EUR12.92 billion.

At 0940 GMT, Telefonica shares were down 3.9% at EUR6.28.

Carl Murdock-Smith, analyst at German bank Berenberg, said broadband and converged customer losses in Spain would raise concerns, combined with misses in the U.K., where revenue came in 0.6% below consensus at EUR1.93 billion.

"Given share-price strength running into the results, we might expect some share price weakness today," Mr. Murdock-Smith said.

Analysts at U.S. bank Jefferies said Telefonica's group revenue at EUR12.4 billion is 0.7% ahead of consensus, although revenue for Spain, which came in at EUR3.27 billion, is 0.4% below consensus.

Telefonica said operating income before depreciation and amortization rose to EUR3.67 billion from EUR3.54 billion the previous fourth quarter--10% below consensus estimates, Mr. Murdock-Smith said--while operating profit fell to EUR914 million from EUR1.07 billion for the same period.

The company said it would pay a dividend of EUR0.40 a share, effectively leaving it unchanged.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

February 20, 2020 05:06 ET (10:06 GMT)

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