By Najat Kantouar
Telefonica reported a sharp decline in net profit for the third quarter due to depreciation of the Brazilian real and an impairment.
The Spanish telecommunication company said net profit fell to 10 million euros ($10.7 million) from 502 million euros for the same period a year earlier. This missed company-compiled consensus estimates of 329 million euros.
This reflects a noncash impairment of goodwill and other intangible assets of 314 million euros in Peru, the company said Thursday.
Adjusted earnings before interest, taxes, depreciation, and amortization--a closely watched measure of profitability--dropped 2.5% to 3.26 billion euros.
Revenue fell to 10.02 billion euros from 10.32 billion euros, but was ahead of the company-compiled consensus of 9.98 billion euros.
Telefonica reiterated its full-year guidance. The outlook includes around 1% revenue growth and adjusted Ebitda growth of between 1% to 2%.
Separately, Telefonica said it reached an agreement with Vodafone Spain to form a fiber joint venture to provide retail and wholesale broadband services in Spain. Telefonica will own a 63% stake in the business, while its partner will hold the remaining 37%.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
November 07, 2024 02:04 ET (07:04 GMT)
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