By Najat Kantouar

Telefonica slid to a net loss for the first quarter, reflecting the sale of some of its Latin American assets and currency headwinds, but said it was on track to meet its full-year guidance.

The Spanish telecommunications group on Wednesday posted a net loss of 1.30 billion euros, equivalent to $1.45 billion, for the quarter compared with a profit of 533 million euros for the same period a year earlier.

The company attributed the result to losses it recognized following the sale of its Peruvian unit and of its stake in Telefonica Argentina, as well as to the depreciation of the Brazilian real. Net profit from continuing operations fell 26% to 427 million euros.

Telefonica has been seeking to reduce its exposure to Latin America since Chairman and Chief Executive Marc Murtra took the helm of the company in January. In addition to the sales in Argentina and Peru, it reached a deal with Millicom for the sale of a majority stake of Colombia Telecomunicaciones.

Meanwhile, adjusted earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--declined to 3.01 billion euros from 3.15 billion euros, while the corresponding margin fell to 32.7% from 33.1%. A company-compiled consensus had adjusted Ebitda at 3.01 billion euros with the corresponding margin at 33.1%.

Revenue fell to 9.22 billion euros from 9.50 billion euros, reflecting a lower contribution from its Latin America operations, but beating consensus expectations of 9.1 billion euros.

Quarterly revenues grew by 1.3% organically, driven by momentum in the corporate and residential businesses.

Telefonica reiterated its full-year guidance, which includes on-year organic growth in revenue and Ebitda. It still anticipates free cash flow to be similar to last year's.

Shares in Telefonica were flat in midday trading in Europe.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

May 14, 2025 06:17 ET (10:17 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.