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Telefonica: organic growth up, but shares remain weak.

(CercleFinance.com) - Telefonica said on Thursday that its organic growth accelerated in the third quarter, while operating margins improved, although this failed to boost the operator's shares in Madrid this morning.

The Spanish telecoms company reported third-quarter net income of 839 million euros, down 14.7% year-on-year.

Its overall operating income before depreciation and amortisation (OIBDA) decreased by 1.9% to 4.1 billion euros, while revenues slipped 2.5% to 12.75 billion euros over the past quarter, impacted by the new regulation in Europe, i.e. the end of "roaming."

However, in organic terms, revenue growth accelerated to 4%, versus 2.9% in January-September, the company said.

Also, the group's OIBDA margin reached 32.1% in the past quarter, up 0.2 point from the same period a year ago.

However, investors focused on the decline of Telefonica Espana revenues over the first nine months of the year, which sent Telefonica shares down 1.5%, while the European telecoms sector was slightly down.

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