Telefonica: organic growth improves; shares rise

(CercleFinance.com) - Spain's largest telecoms company, Telefonica, said second-quarter results showed an improvement in organic growth trends, sending the shares up in Madrid this morning.


The operator said operating income before depreciation and amortisation (OIBDA) rose 1.9 percent in the second quarter, at 4.2 billion euros.

By comparison, OIBDA fell by 0.9 percent in the January-June period.

Furthermore, revenues fell by 6.3 percent to 12.1 billion euros in the second quarter, but grew 2 percent in organic terms, backed by strong growth in handset sales and a positive performance of services.

At 11:00, Telefonica's shares were up 2.6 percent at 7.6 euros compared with a 1.1 percent rise in the STOXX Europe 600 Telecommunications index.

They have fallen 7 percent so far this year.

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