Telefonica: forecasts stable revenue and profit in 2020

(CercleFinance.com) - Spanish telecom giant Telefonica on Thursday forecast stable revenues and operating profit for 2020 after meeting its 2019 financial guidance.


Fourth-quarter operating income before depreciation and amortisation (OIBDA) was 3.7 billion euros, up 3.8% year-on-year, while revenues came in at 12.4 billion euros, down 4%, due to changes in the group's consolidation scope and currency depreciation effects, the company said.

Revenues increased by 2% in organic terms over the past quarter, helped by service revenue growth and handset sales, the Madrid-based operator said.

In its statement, Telefonica said that it has begun 2020 with "good momentum" and that it expects "stable growth" in its main metrics this year, including stable revenues and OIBDA.

Even though net debt - an area of significant concern for investors - dropped by 3.3 billion euros to 37.7 billion euros at end-December, the market wasn't pleased by the report, with Telefonica shares down over 5% this morning on the IBEX 35 index.

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