Telefonica Turns To Profit In Q4, Revenues Edges Down; Sees Stable FY17 Revenues

(RTTNews) - Spanish telecom group Telefonica SA (TDE.L, TEF) Thursday reported that its fourth-quarter consolidated net income was 145 million euros, compared to last year's loss of 2.24 billion euros. Earnings per share were 0.01 euro, compared to loss of 0.45 euro a year ago.

The latest results included several non-recurrent factors, mainly an impact of 1.29 billion euros related to restructuring costs.

Underlying net income was 1.23 billion euros, 2.5 times vs. the same period of the previous year. Underlying basic earnings per share stood at 0.23 euros, compared to 0.09 euros a year ago.

Operating income before depreciation and amortisation or OIBDA amounted to 3.187 billion euros, compared to 721 million euros last year. Quarterly underlying OIBDA reached 4.464 billion euros, compared to 4.21 billion euros in the same period of 2015.

Revenues edged down 1 percent to 13.72 billion euros from 13.86 billion euros a year ago. Revenues grew by 2.7% organic, posting an acceleration of 3.0 percentage points, driven by the solid performance of service revenues.

Excluding the negative impact of regulation, revenues would have grown 3.6% organic year-on-year in the quarter.

Further, Telefonica confirmed shareholders remuneration, so the second tranche of 2016 dividend of 0.20 euros per share in cash will be paid in the second quarter of 2017. The dividend for 2017 of 0.40 euros per share in cash, will be paid in the fourth quarter of 2017 and in the second quarter of 2018, with 0.20 euros per share each.

Looking ahead, for fiscal 2017, the company expects revenues to be stable vs. 2016, despite the negative impact from regulation of approximately 1.2 percentage points.

The company expects an year-on-year expansion of up to 1 percentage points in OIBDA Margin.