Telefonica grows Q4 organic sales 2.7%, targets stable 2017

News General Spain 23 FEB 2017
Telefonica grows Q4 organic sales 2.7%, targets stable 2017
Telefonica reported an improvement in underlying results in the fourth quarter and said it expects stable revenues and a higher margin in 2017. 

In Q4, revenue fell 1.0 percent to EUR 13.271 billion, but rose 2.7 percent on an organic basis, thanks to nearly stable revenue in Spain and a return to organic growth in Brazil. The number of subscriptions was up 0.7 percent year-on-year to just under 350 million, with both mobile and fixed customers growing in Q4. 

Adjusted OIBDA rose 9.4 percent on an organic basis to EUR 3.187 billion in Q4, and the margin improved 2.0 percent points from a year ago to 23.2 percent. The net result moved to a profit of EUR 145 million from a loss of EUR 2.24 billion a year ago thanks to fewer one-time charges and writedowns. 

For 2017, Telefonica said the regulatory impact in Europe will dampen revenue growth, but the company targets stable sales compared to a 5.2 percent fall in 2016. The OIBDA margin is expected to grow by up to 1 percent points, while capital expenditure will fall to 16 percent of revenue from 17 percent last year. 

Telefonica maintained its plan to pay a cash dividend of EUR 0.40 for 2017, in two tranches, compared to EUR 0.55 in 2016, mainly in stock. 

The company generated EUR 4.370 billion in free cash flow last year, up 24.4 percent. Over EUR 2 billion came in the fourth quarter, a drop of 10.4 percent year-on-year. Net debt was down by nearly EUR 1 billion in Q4, but fell by just EUR 566 million in the full year to EUR 48.595 billion at the end of 2016. 

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General

Companies:

Telefonica

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Latin America and the Caribbean

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Spain

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Voice services, Data services, Financial figures, Internet Access

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