European telecom major Telefonica (TEF, TDE.L) reported a fall in first-quarter net income to 748 million euros from the prior year's 1.62 billion euros, with basic earnings per share dropping 53.4% to 0.17 euros from 0.36 euros a year before. Quarterly underlying net income amounted to 1.28 billion euros, lower than 1.75 billion euros last year.
Revenues for the quarter were 15.51 billion euros, a 0.5% growth from 15.435 billion euros in the previous year, driven by higher sales at Telefónica Latinoamérica, which more than offset lower revenues at the European businesses. Excluding the negative impact of mobile termination rates cuts, revenues rose 1.6% from the 2011 first quarter. Exchange rate effects added 0.4 percentage points to growth, leaving it at 0.1% in organic terms.
The company said its first-quarter results are in line with its internal estimates, and hence it reiterates financial and operating guidance announced for 2012, thereby still expecting revenue growth of more than 1% at current exchange rates.
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