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Telefonica Profit Down, Confirms Dividend; Withdraws FY20 View, Backs FY22 View

Spanish telecom major Telefonica SA (TDE.L,TEF) reported Thursday that its first-quarter net income declined 56.2 percent from last year to 406 million euros.

Adjusted net income was 619 million euros, down 30.1 percent.

OIBDA amounted to 3.76 billion euros, down 11.8 percent on a reported basis and down 1.7 percent in organic terms.

Meanwhile, OIBDA of the four core markets increased 0.8 percent organically from the prior year.

OIBDA margin was 33.1 percent, down 2.5 percentage points from last year.

Revenues were 11.37 billion euros, a decline of 5.1 percent on a reported basis and down 1.3 percent organically mainly due to lower service revenues while handset sales remained broadly stable.

Revenues of the four core markets increased 0.1 percent organically.

Further, the company confirmed the announced 0.40 euro dividend for 2020.

Looking ahead, the company said its 2020 financial guidance is withdrawn due to the significant changes in the guidance scenario and context; and the current level of uncertainty amid Covid-19.

As for the mid-term, 2022 guidance of Revenue growth is reiterated.

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