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Feb. 25, 2021, 1:48 a.m. EST

Telefonica swings to profit, revenue to stabilize

By Adria Calatayud

Telefonica SA said Thursday that it swung to a fourth-quarter net profit, as revenue recovered across its four core markets, and said it expects a stabilization of revenue this year.

Net profit for the fourth quarter was 911 million euros ($1.11 billion) compared with a loss of EUR202 million for the same period a year before, the Spanish telecommunications company said.

Revenue for the quarter fell 12% to EUR10.91 billion, due to the impact of the coronavirus pandemic and foreign-exchange effects. On an organic basis, revenue was down 2%.

Telefonica's quarterly operating income before depreciation and amortization rose 2.2% to EUR3.75 billion due to special items that dragged down its performance in the year-earlier period. The company said it expects a stabilization of Oibda in 2021.

Analysts expected Telefonica's fourth-quarter revenue to be EUR10.79 billion and Oibda to be EUR3.58 billion, according to a consensus provided by FactSet and based on estimates by nine and seven analysts respectively.

The board said it will pay a second tranche of its 2020 dividend of EUR0.20 a share, and that it plans to declare a 2021 dividend of EUR0.30 a share.

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