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Telefonica announced Thursday a quarterly earnings growth stronger than expected after the Spanish operator has attracted more customers for its broadband and mobile broadband services.
Telefónica added a record of 724,000 fiber and cable customers, and 2.2 million mobile phone contracts in the second quarter, consolidating its market share against intense competition.
Many of them were more expensive plans which increased revenue per user and helped control one of the sector 's largest debts.
The company has been fighting since the entry of a fourth operator, Masmovil Ibercom since the end of 2016 and introduced a new brand, 02 to attract and retain customers who are less interested in the most expensive products.
The operator strongly promotes Aura a virtual assistant based on artificial intelligence, pursuing his goal to redefine Telefónica as a technology service provider beyond basic telephony and internet connections.
A favorable ruling from a Brazilian tax court boosted profits by 485 million euros (569 million dollars). The operating result before depreciation rose to 4 billion euros, according to a relevant event released Thursday.
The figure exceeds the average estimate of 3.9 billion euros collected by Bloomberg.
Telefónica attempted to attract the attention of investors on its ability to generate cash flow arguing that it can rely on its core business to reduce its rather than resort to sales or acquisitions. Net debt fell 10% to 43.6 billion euros in June, the fifth consecutive quarterly decline.
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