By Mauro Orru
Spanish telecommunication company Telefonica SA cites the depreciation of the Brazilian real against the euro as the main contributor to declines in its first-quarter revenue and operating income before depreciation and amortization.
Telefonica's quarterly revenue fell to EUR10.34 billion from EUR11.37 billion, while operating income before depreciation and amortization fell to EUR3.42 billion from EUR3.76 billion.
The depreciation of Latin American currencies against the euro, mainly the Brazilian real, dealt a EUR754 million blow to revenue and a EUR288 million hit to Oibda, it said.
The fall in the two metrics is also attributable to the continuing effects of the coronavirus pandemic, which wiped out EUR280 million in revenue and EUR129 million in Oibda.
The Brazilian real fell by around 3.5% over the first quarter against the euro. In early March it was down as much as 10% compared with the start of the year, according to FactSet.
The Brazilian real currently trades at 6.4036 to the euro.
Write to Mauro Orru at firstname.lastname@example.org; @MauroOrru94
(END) Dow Jones Newswires