Telefónica’s net income up 22% 15/05/2008 00:00

The Spanish telecoms giant remains on track to achieve its targets for 2008, largely in line with analysts' forecasts.

15 May 2008

MADRID - Spanish telecoms giant Telefónica said Tuesday it remained on track to achieve its targets for 2008 as net income in the first quarter rose 22.4 percent to EUR 1.538 billion, largely in line with analysts' forecasts.

"The positive performance recorded in the first quarter of 2008 allows the company to reiterate guidance both for Telefónica group and for the different regions," Spain's largest company by market capitalization said in a statement.

Telefónica's share price closed up 0.73 percent at EUR 19.32 on Wednesday.

Telefónica is looking to achieve growth in operating revenues for the full year of 6-8 percent and in its gross operating profit in the form of OBITDA of 7.5-11.0 percent. Telefónica ended the quarter with 233 million customers in Europe and Latin America, up 13 percent.

Revenues in the first quarter were up 1.1 percent at EUR 13.896, while OBITDA increased 5.3 percent to EUR 5.376 million.

Revenues in Spain were up 1.9 percent and increased by 10.1 percent in Latin America. "The market was looking for possible negative data in Spain as a result of the economic slowdown, and this did not occur," brokerage Banesto Bolsa said in a research note.

Telefónica said it was accelerating its program to buy back 100 million shares.

[El Pais / Adrián Soto / Expatica]