Telefonica reaffirms outlook on solid Q1

(Sharecast News) - Telefonica reaffirmed its full-year outlook on Thursday after first-quarter numbers at the Spanish mobile giant met expectations.

Revenues at the Madrid-based company, which has a 50% stake in Virgin Media O2 in the UK, rose 0.8% in the three months to March end to €8.13bn on a constant currency basis, as improved demand for services helped offset falling handset sales.

Adjusted earnings before interest, tax, depreciation and amortisation rose 1.8% on the same basis to €2.84bn.

Emilio Gayo, chief operating officer, said the figures "reflect continued and consistent execution based on our strong business fundamentals, appropriate levels of investments and our high-quality and unmatched network.

"This is combined with our financial discipline, having reduced net debt significantly in the quarter."

Looking to the full year, Telefonica said it remained on track to grow revenues and adjusted EBITDA by between 1.5% and 2.5%.

As at 1300 BST, the Madrid-listed stock had put on 6%.

The net loss narrowed to €411m from €1.3bn last year. This year's figure was impacted by the sale of Telefonica's units in Chile, Columbia and Mexico, while last year the loss reflected writedowns relating to the sale of assets in Peru and Argentina.

Telefonica first announced plans to exit most of South America in 2019, leaving it free to focus on its core markets of Spain, Brazil, the UK and Germany.