Telefónica’s profits fall below forecasts

11 Nov 2004

Spain’s largest telco Telefónica said today that it will cut its full-year EBITDA growth forecast from between 7% and 10% to between 5% and 7%, following a similar action by the group’s mobile arm Telefónica Móviles yesterday. Telefónica’s net income rose to EUR862.9 million in the three months to 30 September 2004 from EUR588.7 million in the same period of 2003, while operating costs rose 4.6% to EUR4.18 billion. The Q3 results failed to meet analysts’ forecasts, due to stiff wireless competition which forced the telco to increase spending, particularly in Latin America.

Spain, Telefonica