Telefonica beats forecasts in second quarter, seeks to sell Colombian unit (updated)
31/07/2024 07:33
(Adds details, sale of unit in Colombia)
MADRID, July 31 (Reuters) - Spanish telecom company
Telefonica TEF.MC posted second quarter profit and revenue
ahead of forecasts on Wednesday and said it started talks to
dispose of its Colombian unit to New York-listed rival Millicom
TIGO.O .
The company reported net profit of 447 million euros
($483.83 million) on revenues of 10.26 billion euros and
adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA) of 3.22 billion euros.
Net profit beat the 336 million euros expected by
analysts according to a company-provided forecast, while
revenues and EBIDTA were also higher than the respective
forecasts of 10.05 billion euros and 3.17 billion euros.
Telefonica said its performance in the January-June
period put it on track to meet its targets for the full year.
The company, which has already divested from many markets in
Latin America and elsewhere to focus on Spain, Brazil, Britain
and Germany, also said it started talks with Millicom to sell
its unit in Colombia.
Millicom said in a statement filed on Wednesday it would
pay $400 million in cash for Telefonica's stake in the unit in
the Andean country.
The agreement is non-binding, both companies said, and
still requires the approval of regulators.
Telefonica has disposed of many assets over the past few
years to raise cash to reduce its debt and finance the heavy
investment needed to the roll-out of 5G technology.
($1 = 0.9239 euros)
(Reporting by Inti Landauro, editing by Sarah Young)
((Inti.Landauro@thomsonreuters.com;))