Telefonica Halts Seven-Quarter Sales Slump on Price Hike

Telefonica sales stabilized in the second quarter as the phone carrier benefited from price hikes for premium products in Spain, according to Bloomberg. The results support annual outlook for growth and putting an end to almost two years of declining revenues.

Revenue was flat at 12.1 billion euros, the company said in a statement. That compares with the 12 billion-euro average of six analyst estimates compiled by Bloomberg. The stabilizing sales may give investors confidence in the former monopoly’s target of increasing organic revenue by 2% in 2019. The carrier is relying heavily on growth in Spain to reach that goal after a tough first quarter largely because of competition. The company reiterated its sales target.

Revenue is expected by analysts to improve in the second half, underpinning an expected gain in operating income before depreciation and amortization, known as Oibda. The stable revenue puts an end to seven quarters of declining sales, with the previous increase having been in the second quarter of 2017. The changing trend was mainly supported by higher revenues in the U.K. and Germany, as well as Spain.