MADRID, May 11 (Reuters) – Spanish telecom company Telefonica (TEF.MC) disappointed the market on Thursday with a 58% drop in first-quarter net profit from the same period a year ago, despite higher revenues.
The company said net profit fell to 298 million euros ($328 million), due in part to a 19% rise in debt to 667 million euros.
In the first quarter of 2022, the company recorded a capital gain of 200 million euros on the sale of telecom infrastructure in Colombia.
Total sales rose 6.7% to €10.05 billion, the company added, while core profit fell 2.4% to €3.12 billion.
Brokerage CM Capital Markets said the results were negative for stock prices as net income fell short of expectations, while revenue and core earnings were above consensus.
The stock fell 3.2% in mid-morning trading. They had gained 19% so far this year.
Telefonica said its net financial debt, which has historically weighed on its business and share price, has fallen by €244 million to €26.44 billion.
It reiterated its guidance for low-single-digit revenue growth in 2023, following a 4% increase last year and the same core revenue growth rate.
($1 = 0.9084 euros)
Reporting by Inti Landauro; Edited by Tom Hogue
