MADRID: Spanish telecom giant Telefonica S.A. TEF reported weak financial results in the second quarter of 2016. Quarterly net income decreased a substantial 54.5% year over year to €693 million (approximately $783 million). Moreover, second-quarter earnings per ADR (American Depository Receipt) came in at 15 cents, down 48.3% year over year.
Telefonica recorded total revenue of €12,723 million (roughly $14,369 million) in the second quarter, down 7.7% year over year and short of the Zacks Consensus Estimate of $14,459 million.
Operating income before depreciation and amortization (OIBDA) came in at €3,918 million ($4,423.4 million), down 7.1% on a reported basis and 0.8% on an organic basis. However, quarterly OIBDA margin was 30.8% compared with 30.6% in the year-ago quarter. Operating income declined 12% on a reported basis and 1.5% on an organic basis to €1,567 million ($1,769.1 million).
