Telefonica reported third-quarter revenues down 2.5 percent from a year earlier to EUR 12.754 billion. On an organic basis, revenues rose 4 percent, or 5.3 percent when excluding regulatory effects such as the end to EU roaming rates. Growth in service revenues improved to 3.3 percent year-on-year in organic terms, helped by the return to growth in Spain.
OIBDA amounted to EUR 4.095 billion, down 1.9 percent. Excluding the regulatory impact, OIBDA increased 5.2 percent on an organic basis. Net profit declined 14.7 percent from a year ago to EUR 839 million.
Free cash flow increased 39 percent in the first nine months of the year to EUR 3.226 billion, while capex was down 0.9 percent to EUR 5.962 billion. Net debt was reduced 4.8 percent from a year ago to EUR 47.222 billion at the end of September. Including the sale of Telxius, closed this week, net debt would fall be down to EUR 45.947 billion.
Telefonica also reiterated its guidance for modest growth in full-year revenues, after a 1.4 percent increase in the first nine months, as well as its dividend announced for 2017.
Mobile customer growth improved to 1.5 million net additions in Q3, for a total base of 114.1 million at the end of September. Smartphones reached a penetration of 62 percent, and 89 million customers were using LTE.
FTTx and cable customers grew by 551,000 in the quarter to 10.5 million, equal to 49 percent of the total fixed broadband base. Pay TV subscribers increased by 101,000 in the quarter and were stable year-on-year at 8.4 million.
