Telefonica Lifts 2023 Guidance After 2Q Profit Jump

By Adria Calatayud

Telefonica on Thursday raised its guidance for 2023 in light of what it called a positive performance since the beginning of the year, and reported a jump in second-quarter net profit helped by continued organic revenue growth.

The Spanish telecommunications group now expects organic revenue growth for the full year to be around 4%, while operating income before depreciation and amortization--a closely watched profitability metric--is forecast to rise around 3% organically. Telefonica said the new targets are at the top end of its prior guidance, which called for growth in a range of low single percentage digits for both metrics.

For the second quarter, Telefonica made a net profit of 462 million euros ($512.2 million), up 44% on year.

Revenue rose 0.9% to EUR10.13 billion, while Oibda was broadly flat at EUR3.14 billion, it said. On an organic basis, the company's revenue and Oibda grew 3.3% and 3.5%, respectively, in the quarter.

Analysts had forecast a net profit of EUR274 million, Oibda of EUR3.12 billion and revenue of EUR10.08 billion, according to consensus estimates provided by the company.

"Telefonica is advancing toward a new vision for the company with its 2023-2026 plan," Chairman and Chief Executive Jose Maria Alvarez-Pallete said. The company has scheduled an investor day for Nov. 8, where it intends to outline its strategic plan.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

July 27, 2023 01:42 ET (05:42 GMT)

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