Brazil's Telefonica down 5% after Q1 results

Telefonica Brasil, SA

08/05/2024 16:31

** Shares in Brazilian telecom operator Telefonica Brasil
 VIVT3.SA  fall 5% after the company posted a
lower-than-expected first quarter net profit 
    ** Analysts overall welcome the firm's net revenue figures,
driven by its post-paid business, but raise caution over margins
and the bottom line
    ** Citi analysts say Telefonica Brasil's top-line trends
were "very healthy"
    ** "Still, some expenses lines pressured margin expansion,
combined with lingering high financial expenses, which might
overshadow the read for revenues' tailwinds," they add in a note
to clients
    ** The company, which is controlled by Spain's Telefonica
 TEF.MC , posted 896 million reais in net profit for the
quarter, while analysts polled by LSEG expected a 1.03 billion
    ** Santander analysts say the net income miss came on the
back of a negative operating expenses surprise, but note they
still have a constructive view for the firm's shares
    ** Telefonica Brasil's shares slide 5% in early afternoon
trade to 47.27 reais each, among the biggest fallers on Brazil's
benchmark stock index Bovespa  .BVSP , which is near flat
    ** Earlier on Wednesday they hit their lowest level since
November at 46.53 reais each    

 (Reporting by Andre Romani; editing by Gabriel Araujo)
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