Telefonica 3Q Net Profit Fell Amid Debt Reduction

By Marc Navarro Gonzalez and Marc Bisbal AriasFeaturesDow 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.

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.

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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.

Write to Marc Navarro Gonzalez at and Marc Bisbal Arias at

(END) Dow Jones Newswires

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