April 26, 2018 / 7:08 AM / a month ago

Telefonica first-quarter core profit down 3.9 percent on currency pressures

MADRID (Reuters) - Spanish telecoms firm Telefonica on Thursday posted a 3.9 percent fall in first quarter core profit from a year earlier, in line with analyst expectations, as improvements in the domestic market were offset by currency pressures.

A man stands under a logo of Spain's telecom giant Telefonica at the company's headquarters in Madrid, Spain, February 26, 2016. REUTERS/Juan Medina/File Photo

Telefonica has been raising tariffs in its home market after investing billions in high-speed networks in an effort to combat low-cost rivals such as Spain’s Mas Movil.

The group expects revenues to rise around 1 percent and Oibda margin to increase by half a percentage point as a result. It would keep its dividend unchanged at 0.40 euros per share.

Operating income before depreciation and amortisation (Oibda) was 3.86 billion euros ($4.70 billion) compared with analysts’ forecast of 3.86 billion euros.

Telefonica - which also offers services in Britain, Germany and throughout Latin America - had revenues of 12.19 billion euros in the first quarter compared to 13.13 billion euros a year earlier while net profit was 837 million euros compared to 779 million euros.

($1 = 0.8214 euros)

Reporting by Julien Toyer; Editing by Paul Day and Matthew Mpoke Bigg

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