Spain’s Telefonica raises annual forecast, posts 320 million euro Q2 profit

MADRID (Reuters) -Spanish telecom firm Telefonica on Thursday raised its annual revenue and earnings outlook and reported a net profit of 320 million euros ($326.50 million) for the second quarter.

The company’s core earnings came in at 3.15 billion euros, with overall revenue at 10.04 billion euros.

A company-provided consensus of analysts expected net profit of 333 million euros, core earnings of 3.06 billion and revenue of 9.58 billion.

Net profit and core earnings during the quarter fell 96% and 77% respectively from a year earlier as 2021 results were boosted to record levels by gains from merger and acquisition (M&A) operations.

Excluding the effects of M&A and including the contribution of Telefonica’s 50% stake in a British joint venture, core earnings were up 3.4%.

Following the results, the company said it now expects 2022 revenue growth in the “high-end of the low single digit” range with core earnings growth in the “mid-to-high-end of the low single digit” range from a previous outlook of “low single digit growth” for both figures.

Telefonica said it managed to reduce the negative effects of inflation on its accounts and benefited from currency swings as the euro weakened in the second quarter.

($1 = 0.9801 euros)

(Reporting by Inti Landauro; editing by Vinay Dwivedi and Jason Neely)

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