Telefonica books $59 million net loss in second quarter on currency swings
Telefonica
booked a net loss of 51 million euros ($58.93 million) in the second quarter due to currency swings and capital impairments on assets sold in Latin America.
The company's net loss during the quarter compared with a 417 million euro net profit in the same period a year ago.
Its overall revenue in the quarter fell 3.7% to 8.95 billion euros, it said, mainly because of the depreciation of the Brazilian real against the euro.
"The results of the quarter are in line with internal expectations," Chief Executive Marc Murtra said in a statement, adding he maintained the company's targets and dividend payouts for the year.
"We keep showing a solid behaviour, which demonstrates resilience and consistency despite different dynamics in the markets we operate in amid an uncertain economic context," Murtra added.
Analysts expected a net profit of 104 million euros and overall revenues of 8.92 billion euros, according to a company-provided consensus.
The company booked a 206 million euro impairment on the value of its units it sold in Latin America.
Telefonica sold its units in Argentina and Peru earlier this year for $1.25 billion and 900,000 euros, respectively. It had already booked accounting losses on these two sales worth 1.7 billion euros last quarter and it had already written 314 million euros off the value of its Peruvian unit in the third quarter of 2024.
The company has also exited from Colombia.
Murtra has said he wanted to reduce the company's exposure to Spanish-speaking Latin America and focus the company on its four main markets - Brazil, Britain, Germany and Spain.
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