Telefonica Shares Tumble After Swing to 4Q Net Loss
February 20 2020 - 5:21AM
Dow Jones News
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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