Telefonica 1Q Results Dented by Weak Brazilian Real -- Currency Comment
By Mauro Orru
Spanish telecommunication company Telefonica SA cites the
depreciation of the Brazilian real against the euro as the main
contributor to declines in its first-quarter revenue and operating
income before depreciation and amortization.
Telefonica's quarterly revenue fell to EUR10.34 billion from
EUR11.37 billion, while operating income before depreciation and
amortization fell to EUR3.42 billion from EUR3.76 billion.
The depreciation of Latin American currencies against the euro,
mainly the Brazilian real, dealt a EUR754 million blow to revenue
and a EUR288 million hit to Oibda, it said.
The fall in the two metrics is also attributable to the
continuing effects of the coronavirus pandemic, which wiped out
EUR280 million in revenue and EUR129 million in Oibda.
The Brazilian real fell by around 3.5% over the first quarter
against the euro. In early March it was down as much as 10%
compared with the start of the year, according to FactSet.
The Brazilian real currently trades at 6.4036 to the euro.
Write to Mauro Orru at email@example.com; @MauroOrru94
(END) Dow Jones Newswires
May 13, 2021 07:40 ET (11:40 GMT)
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