Telefonica Drops as Earnings Trail Estimates on Higher Costs

Telefonica Brasil SA, Brazil’s largest phone company by revenue, dropped to a two-week low after first-quarter profit trailed analysts’ estimates on higher costs associated with bringing all its services under the Vivo brand.

Shares dropped 1.1 percent to 54.10 reais at the close in Sao Paulo, the lowest since April 27. It was the worst performer on the the MSCI Brazil/Telecommunication Services Index, which gained 0.1 percent. The benchmark Bovespa index advanced 0.1 percent.