Telefonica: quarterly earnings beat on Spain activity

(CercleFinance.com) - Spanish telecoms company Telefonica has beaten the consensus in the third quarter, mainly thanks to strong commercial activity in Spain.


Altough the group's revenues fell by 8% to 11.7 billion euros in the period, third-quarter net profit reached 1.1 billion euros, up 35% year-on-year.

Telefonica said its Spanish unit, Telefonica Espana, posted an "excellent" commercial activity in the third quarter, with record figures in fixed and mobile, and the highest mobile contract net additions in ten years.

The division's quarterly revenues rose by 0.1% to 3.2 billion euros, mainly thanks to higher handset sales (+4.6%).

This performance prompted the former monopoly to raise its revenue growth guidance for 2018 to around 2%.

At 10:45, Telefonica's shares were up 1.9% at 7.04 euros, outperforming a 0.3% rise in the STOXX Europe 600 Optimised Telecommunications index.

Note that Telefonica shares have fallen by 11% so far this year.

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