Telefonica Q1 results drop on forex, Czech sale

Nieuws Algemeen Spanje 9 MAY 2014
Telefonica Q1 results drop on forex, Czech sale
Telefonica reported first-quarter revenues down 13.5 percent from a year earlier to EUR 12.232 billion, hurt by negative exchange rate effects and the sale of its Czech operations. OIBDA was down 14.0 percent to EUR 3.929 billion, and net profit fell 23.2 percent to EUR 692 million. Excluding the forex effects and change in scope, the operator reported revenues up 1.5 percent and OIBDA 0.5 percent higher on organic basis. 

Telefonica reduced capital expenditure by 19.9 percent compared to the year-earlier quarter to EUR 1.555 billion, mainly due to lower spending on spectrum. Net debt was cut by EUR 2.657 billion in Q1 to EUR 42.724 billion at the end of March, equal to 2.30x OIBDA. 

Telefonica said the organic growth shows its strategy of focusing on customer service and network quality is paying off, with growth in areas such as postpaid mobile and fibre helping to improve ARPU. The operator grew smartphone penetration (with data subscriptions) to 30 percent of its 247.5 million mobile customers in Q1. The total mobile base was up 3 percent on an organic basis from a year earlier, while fixed broadband customers rose 2 percent to 17.6 million, and pay-TV subscribers increased 8 percent to 3.6 million. 

The company reiterated its full-year outlook for positive organic sales growth, a flat to slightly lower EBITDA margin, higher capex of 15.5-16 percent of revenues and net debt under EUR 43 billion by the end of 2014. The forecast also excludes Venezuela, leading to a result in Q1 of organic sales down 0.1 percent, the margin down 0.4 percent points and capex at 11.5 percent of revenue.  

Categories:

Algemeen

Companies:

Telefonica

Regions:

Europa,  Latijns-Amerika en het Caribisch gebied

Countries:

Spanje

Tags:

Voice services, Data services, Financial figures, Internet Access

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