Northern, WI 08/27/2013 (usastockreport) – Telefonica S.A. ADR (NYSE:TEF) reported a net income at $2.75 billion, which was lower by 0.9% compared to $2.77 billion for the first half of previous year. Further, the revenues for the first half of the fiscal year had been reported to be at $37.9 billion which were lower by 7.8% compared to previous year. The EBITA profit margin for the company was at 33% for the first half of 2013 compared to 33.7% in first half of previous year 2012.
The ability of Telefonica S.A. ADR (NYSE:TEF) to maintain such stable net incomes over the year had been primarily attributed to the reduction in financial expenses during first two quarters at $1.86 billion compared to $2.11 billion during previous year. Further, the company was also successful in reducing its taxes to $999 million for the first half of 2013 compared to $1.28 billion for fiscal year 2012.
It proves that such effective reduction in financial expenses and income taxes had enabled the company to have minimum impact on its net income for 2013, despite heavy decline in revenues by 7.8% and drop in EBITA margins by 9.7% It is worth noting that the investors had recently been flocking to the shares of Telefonica S.A. ADR (NYSE:TEF) to trade on such effective earnings from the markets. The stock had presented significant returns to the traders in the recent days and had been of higher level of attraction to the investors.