MADRID: Telefonica, Europe’s second-largest phone company, reported first-quarter revenue that beat analysts’ estimates, as business in Spain continued to improve. Sales rose 13pc to €11.5bn ($13.1bn), the Madrid-based carrier said in a statement Thursday.
Operating income rose 7.7pc to €3.62bn, stripping out interest, depreciation and amortization. Analysts had predicted Oibda of €3.59bn on sales of €11.4bn, according to the average of estimates compiled by Bloomberg. The carrier has said it expects to return to growth in Spain in 2015 after slowing the pace of decline last year in its biggest market. The recovery is driven by the country’s economic growth, forecast to be almost double the European Union’s average this year. That’s allowed Telefonica to start raising prices for its services.
Spanish growth will hinge partially on the integration of DTS Distribuidora de Television Digital SA, the pay-TV service Telefonica acquired in April. The purchase gives Telefonica a market share of about 85pc in the domestic pay-TV market.
