By RTT News,
May 09, 2014, 03:43:00 AM EDT
(RTTNews.com) - Spanish telecom group TelefÃ³nica S.A. (TEF, TDE.L) Friday reported about 23 percent decline in the first-quarter profit, hurt by exchange rate fluctuations and disposal of certain assets. The company also backed its financial and operating targets for 2014.
According to the firm, its contract mobile accesses grew almost double-digit year-on-year benefited by acquisition of almost 6 million smartphone customers.
Movistar FusiÃ³n continued to be the companyÂ´s key growth lever and reached 3.2 million customers and 1.2 million additional mobile lines, representing 64 percent of consumer fixed broadband customers and 50 percent of mobile contract customers.
FusiÃ³n ARPU amounted to 70.2 euros in the first quarter, virtually stable year-on-year, and churn stood at 1.3 percent.
For the first quarter, the company's net income fell 23.2 percent to 692 million euros from 902 million euros in the previous year.
Revenues for the quarter fell 13.5 percent to 12.23 billion euros from 14.14 billion euros in the same quarter last year. Revenues were up 1.5 percent in organic terms. Excluding the negative impact of regulation, organic revenue growth was 3.4 percent.
TelefÃ³nica UK revenues improved 2.4 percent from last year. The company noted that TelefÃ³nica EspaÃ±a revenues showed significant improvement in the year-on-year downward trend, and revenues were down 8.2 percent, 3.7 percentage points lower than in the prior year.
TelefÃ³nica Brasil revenues fell 18.3 percent, and TelefÃ³nica HispanoamÃ©rica showed 12.9 percent decline in revenues. TelefÃ³nica Deutschland revenues were down 8.8 percent from the preceding year.
At the end of March, TelefÃ³nica Group reached 313.1 million accesses, down 1 percent from a year ago, due to sale of T. Czech Republic and the disposal of assets relating to the fixed consumer business in the U.K. Excluding these impacts, total accesses grew 2 percent.
Mobile accesses increased by 3 percent in organic terms, and Smartphone posted net additions of 5.6 million in the quarter. Retail fixed broadband accesses totaled 17.6 million, up 2 percent from the year 2013.
Pay TV accesses totaled 3.6 million, and was up 8 percent year-on-year.
For 2014, the company backed its financial and operating targets, including dividend distribution of 0.75 euros per share. For the year, it still sees positive revenue growth, on an organic basis, and excluding Venezuela.
In Madrid, TelefÃ³nica shares are currently trading at 11.83 euros, down 1.74 percent, on a volume of 3.22 million shares.
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