July 25, 2019 / 5:52 AM / 25 days ago

Telefonica confirms full year targets as core profit rises

FILE PHOTO: A general view shows the Telefonica headquarters in Madrid, Spain, June 12, 2018. REUTERS/Juan Medina/File Photo

MADRID (Reuters) - Telefonica (TEF.MC) posted a 1.6% rise in second-quarter core profit on Thursday, slightly shy of its full-year margin targets, but the Spanish telecoms group said it could still meet those objectives as its average income per client was increasing.

Europe’s third-biggest telecom operator is aiming for around 2% growth in revenue and margins this year.

Like its continental peers it needs to invest in next-generation mobile networks and fiber broadband while convincing customers not to switch lower-cost rivals.

Operating income before depreciation and amortization reached 4.44 billion euros ($4.94 billion), up from 4.24 billion a year earlier and above the 4.35 billion forecast by analysts.

Margin on this core income shrank 0.7 percentage point on an organic basis, however, coming under pressure in all its markets apart from Britain and the southern region of Latin America, which includes Argentina, Chile, Peru and Uruguay.

Reporting by Isla Binnie and Andres Gonzalez; editing by Jose Elias Rodriguez and Jason Neely

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