Telefónica gain will be affected by exchange scheme … – El Universal (Venezuela)

Telefónica gain will be affected by exchange scheme … – El Universal (Venezuela)

 EL UNIVERSAL
 

Monday February 16, 2015 24:56

Caracas .- Representatives of the Spanish company Telefonica said Monday its net profit in 2014 will be reduced by 399 million euros by the impact of the change in the exchange mechanism in Venezuela.

The EBITDA or OIBDA will drop 915 million euros (1,000 million), said in a statement. The company said its net financial assets in the country will be reduced by 1,230 million euros and total net assets will suffer a cut of 2,840 million euros.

Telefónica explained, however, that these settings are not will affect their investment plans and growth in Venezuela.

Additionally said it will use the exchange rate of the so-called “Sicad II”, a scheme of exchange auction aimed at providing dollars for imports, to consolidate its operations in the South American nation.

The Venezuelan government announced last week a new mechanism to allow the market to determine the value of the dollar, easing the strict control of more than a decade and allowing a sharp devaluation of the bolivar.

(1 US dollar = 0.8787 euros) (Reporting by Andres Gonzalez; writing by Jesús Aguado; edited by Rodrigo de Miguel and Tim Pearce)