MADRID: Telefonica is seen reporting on Wednesday a rise in first-quarter net profit thanks to lower financial costs but a dip in revenues due to a recession in its home market Spain and weak exchange rates in some Latin American countries.
Ten analysts polled by Reuters predicted net profit at Europe's biggest telecoms company by revenue would rise 27.5 percent year-on-year to reach 954 million euros ($1.25 billion), while revenues would drop 9 percent to 14.2 billion euros.
Telefonica, which wants to reduce its debt to below 47 billion euros by year-end compared to 51.3 billion euros at end-2012, will report a 1 billion euro drop in debt after a number of cash-raising operations, according to Morgan Stanley estimates.
Investors will be watching for signs of life in Telefonica's domestic market, where 27 percent of the workforce is jobless and the company has lost mobile market share.
Analysts expect revenues in Spain to have fallen around 10 percent in the first quarter, though margins should have continued to improve owing to the company's decision to scrap smartphone subsidies last year.
Comments
Comments are closed for this article.