TEF Telefonica SA

   By Mauro Orru 
 

Telefonica SA said Thursday that net profit for the first quarter increased, while revenue edged lower mostly because of the continuing effects of the coronavirus pandemic as well as unfavorable foreign-exchange trends.

The Spanish telecommunication company said first-quarter net profit climbed to 886 million euros ($1.07 billion) from EUR406 million a year earlier.

Quarterly revenue slipped to EUR10.34 billion from EUR11.37 billion, it said.

Telefonica's operating income before depreciation and amortization, or Oibda, fell to EUR3.42 billion from EUR3.76 billion, with its corresponding margin declining to 33% from 33.1%, the company said.

Telefonica said the coronavirus wiped out EUR280 million in revenue and EUR129 million in Oibda, although the impact in the first quarter was less pronounced than in previous quarters.

Exchange-rate trends dealt a EUR754 million blow to revenue and a EUR288 million hit to Oibda, it said.

The company said that its first-quarter performance was within management expectations, and that it still expects to meet 2021 guidance.

Telefonica said it expects a stabilization of revenue and Oibda this year.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

May 13, 2021 02:05 ET (06:05 GMT)

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