Europe > Southern Europe > Spain > Telefónica continues to struggle for growth in Q3

Spain: Telefónica continues to struggle for growth in Q3

2013/11/10

Spanish operator Telefónica (NYSE: TEF) continued to struggled to achieve revenue and net gain increase in Q3, but has reduced net deficit to below its year-end target of 47.0bn euros (US$63.1bn), the company said in a results release.

Telefónica saw revenues down 9.5% to 14.1bn euros in Q3, although this would have increased by 2.1% on a constant currency basis.

The foreign exchange chief winds appear to be related to ongoing currency effects in Latin American markets.

Revenues from the region fell 6.8% to 7.1bn euros in the quarter, but were up 10.9% in organic terms, with significant currency effects in several markets inclunding Brazil, Argentina, Chile, Peru, Colombia and Venezuela.

Meanwhile, the operator continued to see difficulties in European markets, with revenues from the region down 9.8% in the quarter to 6.7bn euros, as all five of Telefónica's European units saw sales fall.

The operator as well saw total net gain decline 21.1% to 1.1bn euros in the quarter, according to the release.

However, Telefónica was able to significantly reduce net deficit, which fell to 46.1bn euros at the end of Q3, below the company's year-end target of 47.0bn euros.

Inclunding post closing events such as the sale of Telefónica's Czech Republic and Ireland units, but excluding securities issued in Q3 to finance its 5.0bn-euro acquisition of KPN's German unit E-Plus, net deficit would have been 44.6bn euros, the operator said.

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