By Najat Kantouar
Shares in Telefonica rose after it reported revenue and adjusted earnings that exceeded expectations for the first-quarter as the group continues to deliver on its transformation plan.
In early morning trading, shares were up 5.1% at 4.01 euros. Year to date, shares have risen slightly above 14%.
The Spanish telecommunications group said Thursday that revenue rose slightly to 8.13 billion euros ($9.53 billion) from 8.09 billion euros in the prior-year period, ahead of a company-compiled market consensus of 8.07 billion euros.
Revenue in Spain grew 2% on a year-on-year constant change basis, supported by a 1.7% rise in service revenue and 6.9% growth in handset sales. In Brazil, revenue increased 7.4%, reflecting strong growth in several segments including new digital businesses, handset sales and mobile-service revenue.
Germany revenue fell 8.6% due to temporary negative pressures on mobile-service revenues and weak German market handset trends, it added.
Adjusted earnings before interest, taxes, depreciation and amortization increased to 2.84 billion euros from 2.80 billion euros. Analysts forecast adjusted Ebitda of 2.79 billion euros.
First-quarter net loss was 411 million euros compared with a loss of 1.30 billion euros for the same period a year earlier. That loss reflected the sale of the group's Argentine and Peruvian units and the depreciation of the Brazilian real.
Telefonica--under the helm of Chairman and Chief Executive Marc Murtra since January 2025--has reduced its exposure to Latin America as it seeks to boost growth. The company also made its first acquisition under Murtra's leadership earlier this year when it bought U.K.-based fiber operator Netomnia.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
05-14-26 0428ET
