MADRID – Spanish telecoms giant Telefonica saw its first quarter net income soar 118%, largely on lower costs, even as pandemic-affected sales slipped 9%.
Net income reached €886 million (RM4.4 billion), the group said in a statement.
“These results show the resilience of the company’s business model and the effectiveness of the management, focused on cost reduction and stable operating cash flow,” Telefonica said in a statement,” adding they “also reflect the lower impact of the effects of the pandemic and the evolution of exchange rates compared to the end of 2020”.
Telefonica is in the throes of a major restructuring plan that has, to date, seen it cut staffing levels by 1.3% to 112,543.
The group said it had “improved efficiency” with digital sales up 37% in its four main markets – Spain, Germany, UK and Brazil, which between them contributed 78% of revenues.
The group also said it had cut net debt 6.4% year-on-year to €35.8 billion, adding it had reduced by almost 44% financial costs stemming from servicing it.
Although sales slipped back to €10.3 billion the group said it forecast a gradual recovery in all its markets with figures that it said put it “on track to meet the financial targets set for 2021”. – AFP, May 13, 2021
