Telefonica Q1 Profit Climbs On Revenue Strength; Backs FY17 Outlook

(RTTNews) - Spanish telecom group Telefonica SA (TDE.L, TEF) Thursday reported that its first-quarter net income increased 42.2% to 779 million euros. Earnings per share stood at 0.14 euro, up 48.8%.

OIBDA, a key earnings metric, reached 4.02 billion euros, a growth of 4.8% year-on-year. The margin remained stable.

Revenues amounted to 13.13 billion euros, 5% increase on a reported basis and 1.5% rise in organic terms. The revenues were driven by service revenues. Mobile data revenues services was particularly notable, maintaining its double-digit growth.

Further, the company reiterated its guidance and dividend announced for 2017.

For fiscal 2017, the company expects revenues to be stable vs. 2016, despite the negative impact from regulation of approximately 1.2 percentage points.

The company said earlier that it expects an year-on-year expansion of up to 1 percentage points in OIBDA Margin.