Telefónica SA, the well-known Spanish telecommunications firm, announced on Thursday a significant drop in its third-quarter profit for shareholders, plummeting by 98.1% to just 10 million euros compared to 502 million euros in the same period last year.
The company reported a loss of 0.01 euro per share, a substantial decrease from the previous year's earnings of 0.08 euro per share, largely due to fewer shares.
Nonetheless, the adjusted net income rose by 5.3% to 629 million euros, equivalent to 0.10 euro per share, improving from the prior year's 0.09 euro per share. However, EBITDA saw a decline of 2.5% year-over-year, settling at 3.26 billion euros, though the EBITDA margin showed a slight increase of 0.1 percentage point to 32.5%.
Furthermore, EBITDAaL decreased by 3.4% to 2.60 billion euros compared to the previous year.
Overall revenue also dropped by 2.9%, registering at 10.023 billion euros down from 10.321 billion euros a year prior. Service revenue experienced a decrease of 2.2%, while handset sales declined by 9%. Despite these figures, the company highlighted that its underlying revenue growth remains strong.
Looking forward, Telefónica reaffirmed its trajectory towards meeting its fiscal 2024 objectives. The company maintains its expectation for a near 1% increase in annual revenue and forecasts a 1% to 2% rise in EBITDA for the entire year.
The enterprise continues to align with its 2023-2026 strategic guidance, predicting a roughly 1% increase in revenue and an approximate 2% boost in EBITDA.
