MADRID (Reuters) -Spain’s Telefonica (NYSE:) posted a smaller-than-expected fall in first-quarter web revenue on Thursday helped by inflation-matching value rises in most markets, working efficiencies and energy in its cloud and cybersecurity enterprise.
Web revenue fell 20% to 706 million euros ($742 million) however beat the 470 million forecast by analysts in a company-provided survey.
Telefonica’s reported core earnings fell 6.4% to three.2 billion euros on income down 9% to 9.41 billion, beating analysts forecasts of two.96 billion and 9.07 billion.
“The outcomes have exceeded forecasts in the primary indicators,” analysts at brokerage Renta 4 stated in a observe to traders.
Telefonica’s shares jumped 4.3% whereas the blue chip IBEX-35 index fell 1.6%.
Excluding the consequences of current asset disposals, core earnings rose 2.1% on income up 3.2%, the corporate stated.
“Telefonica’s stable starting of the yr in an surroundings of inflationary tensions and geopolitical instability exhibits the energy of the corporate in dealing with probably the most antagonistic conditions,” CEO Jose Maria Alvarez Pallete stated in an announcement.
Telefonica attributed the efficiency to its skill to adapt costs to inflation in most markets, beneficial forex swings and the energy of its tech enterprise, which offers cybersecurity, cloud, large knowledge and internet-of-things companies.
Digitalisation of operations generated price cuts, the corporate stated.
The forex adjustments boosted income by 242 million euros and the tech unit contributed 299 million, 81% greater than a yr earlier.
The corporate benefited from a job discount plan and value will increase in nations, primarily in Latin America, the place its charges are listed to inflation.
Telefonica reiterated it anticipated “low single-digit development” in core earnings and income excluding the impact of asset gross sales.
It additionally confirmed a dividend of 0.3 euros per share to be paid in two instalments in December 2022 and June 2023.
Chief Working Officer Angel Vila stated the primary quarter confirmed how resilient the corporate is and stated he expects additional tailwinds within the second half of the yr.
“We are going to monitor the evolution over the yr to make, if wanted, upside changes to the steerage,” he stated on a convention name with analysts.