Telefonica first quarter below expectations

The Spanish company Telefonica ended the first quarter with a fall in core profit by 6.7% to 3.376 billion euro, slightly below market expectations, penalized by the exchange rate depreciation.

The weakening of exchange rates on many of the overseas markets was only partly offset a slight expansion of the business.

The operator is considering how to reduce debt and to meet the requirements of the rating agencies in the event that the European Commission block the planned sale of the British subsidiary O2 in Hutchinson Holdings. The net financial position was negative by 50.2 billion at end-March from 49.9 billion at end-December.