Before I jumped in Tuesday (for the dividend) I did read the headlines or "news" either here on on the co's website. Seems they had to write off future costs of reducing some employees after the recent mergers. This was according to the author of a news article. (You should be able to find it.) I just scanned the article, but the conclussion was that TEF is a good buy now since those reading the Income Statement, but not the footnotes, have oversold the stock.
The guy did a lot of math, and he did allow that after taking out the effect of the write-offs, gross profit margins did fall somewhat.
Whew, I could have found the article in the time it has taken to explain it. If this message keeps going, I'll look it up if asked.