Telefonica ahead of target

Telefónica executive chairman, César Alierta, is hailing success in achieving annual earnings and debt reduction targets ahead of schedule, despite marginal revenue growth in the nine months to end September.
 
The telco generated a profit of €3.1 billion in the first three quarters of 2013, however its revenue grew 0.4% year-on-year. On a quarterly basis, sales in Latin America grew 10.9% sequentially in 3Q13, and in Europe by 1.7%.
 
However, Telefonica claims the nine month profit means it has met its full year target ahead of time. The telco also shed nearly €10 billion off its net debt in the period to end September, leaving it on track to meet its annual target of €47 billion.
 
Alierta says the figures show there are “clear signs of recovery” on the operating side of the business, and said the firm’s management of its portfolio, such as plans to sell its Czech Republic business, will “boost the group’s growth profile, by strengthening our position in certain key markets.”
 
Telefonica is currently bidding to acquire German operator E-Plus from Netherlands incumbent KPN.