Telefonica Q4 Underlying Profit Down On Weak Revenues; Sees Stabilization Trends In FY21

(RTTNews) - Spanish telecom major Telefonica SA (TDE.L, TEF) reported Thursday that its fourth-quarter net income was 911 million euros.

Underlying net income was 1.04 billion euros, up 55 percent from last year.

Operating income before depreciation and amortisation or OIBDA reached 3.75 billion euros in the fourth quarter, 2.2 percent higher than last year. OIBDA margin was 34.4 percent, up 4.8 percentage points from the prior year.

OIBDA-CapEx grew 31.9 percent from last year to 2.08 billion euros.

In the quarter, revenues were 10.91 billion euros, down 12 percent on a reported basis and 2 percent organically.

Further, Telefonica said it will propose for approval to the next AGM the shareholder remuneration policy for 2021, a voluntary scrip dividend of 0,30 euro per share. In this, 0.15 euro per share will be paid in December 2021 and 0.15 euro per share in June 2022.

Looking ahead for fiscal 2021, the company expects stabilization trends in revenues and OIBDA, as well as normalisation in the level of CapEx/Sales up to 15 percent.