Telefónica won 3.001 million in 2014, 34.7% less – Terra Peru

Telefónica won 3.001 million in 2014, 34.7% less – Terra Peru

The group Phone achieved a net profit of EUR 3.001 million of in 2014, 34.7% fewer than a year earlier.

This is due, among other factors, to the devaluation of several currencies in which it operates, especially the Venezuelan bolivar, and the integration of E-Plus in Germany.

Facade of the headquarters of Telefónica in Düsseldorf (Germany)

Photo: EFE in Spanish

Sharp fall in net profit

Net profit was affected by several extraordinary impacts, especially produced in the fourth quarter (non-recurring provisions, set exchange in Venezuela or provision of restructuring costs), without which the result would be 4.462 million (-18.6%), announced today the company.

The revenue of Telefónica stood at Euro 50,377,000 of and gross operating result (OIBDA) in 15,515,000, representing declines of 11.7% and 18.7%, respectively .

A debt of 45,087,000

In a statement, Telefonica stresses that maintained a strong financial discipline in 2014, the year closed with a debt of 45,087,000 euros, above its target of 43,000 million, which accuses the “Venezuela effect.”

In Spain, revenue declined 7.2%, to 12.023 million.

According to the company, in Spain, the last year has marked a “turning point” , with a clear trend of annual revenue enhancement “quarter to quarter.”

Meanwhile, Telefónica Deutschland lost 721 million euros compared with a profit of 78 million 2013, burdened by the costs of integration of E-Plus.

Brazil

In Brazil, one of its main markets, income improved 0, 5% (11.231 million euros), while OIBDA fell 10.1% (3,543,000).

The adaptation of the exchange rate of the bolivar had an impact on net income for the group of 399 million euros and 2,840 million in the valuation of its assets in the country.

Telco Digital

Over the past year, Telefónica invested a record 9,500 million euros , 16.9% more than in 2013. This investment involves a considerable progress in the upgrade and differentiation of networks, and strengthens the transformation of the company into a Digital Telco to ensure higher sustainable growth future