Telefonica 3Q Net Profit Fell Amid Debt Reduction

By Marc Navarro Gonzalez and Marc Bisbal Arias Features Dow Jones Newswires

Telefonica SA (TEF.MC) said Thursday that its third-quarter net income fell compared with the year-earlier period as it made some progress chipping away part of its debt pile.

Continue Reading Below

Net profit fell by 14.7% to 839 million euros ($992.5 million) from EUR983 million a year earlier. The year-on-year results incorporate its U.K. business, which previously had been up for sale.

Revenue was EUR12.75 billion, down 2.5% from a year earlier. Operating income before depreciation and amortization decreased 1.9% to EUR4.1 billion.

Telefonica's net debt decreased by EUR1.27 billion in the third quarter from the second quarter of 2017 to EUR47.22 billion. The reduction was helped by a strong free cash-flow generation from the period from January to September--which marked a 39% increase year-on-year, the company said.

The Spanish telecommunications giant also said debt will be further reduced by an additional EUR1.28 billion in the fourth quarter after the closing of a 40% stake in Telxius sale.

The company also reiterated its 2017 guidance and dividend.

Continue Reading Below

Write to Marc Navarro Gonzalez at marc.navarrogonzalez@dowjones.com and Marc Bisbal Arias at marc.bisbalarias@dowjones.com

(END) Dow Jones Newswires

October 26, 2017 02:31 ET (06:31 GMT)