Telefonica Q4 sales flat, OIBDA falls 88% on restructuring

Nieuws Algemeen Latijns-Amerika en het Caribisch gebied 26 FEB 2016
Telefonica Q4 sales flat, OIBDA falls 88% on restructuring

Telefonica reported fourth-quarter revenues flat at EUR 11.881 billion, as negative currency effects in Latin America offset growth from the acquisitions of GVT and DTS. OIBDA fell 88.1 percent to EUR 401 million due to restructuring charges. On an organic basis, Telefonica reported revenues down 2.0 percent in Spain, up 2.0 percent in Germany and 3.4 percent higher in Latin America. OIBDA was hut by a total EUR 3.122 billion in restructuring charges, including EUR 2.896 billion in Spain, as well as a contribution to the Telefonica Foundation of EUR 325 million. The net result was a loss of EUR 1.832 billion. 

Over the full year, Telefonica reported capital expenditure up 10.3 percent to EUR 9.578 billion, of which around EUR 1.6 billion went to spectrum, and the company posted positive operating cash flow of EUR 1.835 billion, down 64 percent from 2014. Net debt rose by EUR 4.834 billion over the year, mainly due to dividends, capex and spectrum, to a total EUR 49.921 billion at year-end. This resulted in leverage of 2.91 times EBITDA, which the company estimates will fall to 2.31 after the sale of O2 UK. Telefonica expects to resume cash dividends next year at EUR 0.75 per share after the sale of O2. It also forecast for 2016 revenue growth over 4 percent, a stabilisation in the OIBDA margin and capital expenditure (excluding spectrum) at around 17 percent of revenues, the same as last year. 

Telefonica ended the year with 247.1 million mobile customer, down 1 percent due mainly to prepaid losses in Brazil. In the fourth quarter, the company said it added 1.7 million new postpaid subscribers, the highest in six quarters. Smartphone penetration rose 15 percent points over the year to 48 percent of customers. LTE customers also tripled to 29.7 million. In fixed broadband, the customer base was up 19 percent to 21.0 million, helped by the takeover of GVT in Brazil and organic growth in Spain and Brazil. Fibre subscribers increased 30 percent on an organic basis to 6.1 million, and pay-TV customers were up 12 percent to 8.3 million. 

Categories:

Algemeen

Companies:

O2,  Telefonica

Regions:

Latijns-Amerika en het Caribisch gebied

Countries:

Spanje

Tags:

Voice services, Data services, Financial figures, Internet Access

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