Telefonica maintained underlying growth in its results in the second quarter and reiterated its outlook for a modest increase in results over the full year. Quarterly revenues rose 3.7 percent on an organic basis, and adjusted EBITDA was up 1.6 percent, similar to the performance in Q1.
Reported revenues were flat year-on-year at EUR 12.142 billion due to currency effects and divestments in Central America. Telefonica's strongest markets were South America, the UK and Germany, offsetting flattish sales in Spain, Brazil and the rest of Latin America.
Reported OIBDA rose 4.7 percent year-on-year to EUR 4.438 billion, helped by the new accounting rules and gains on divestments, and the OIBDA margin expanded by 1.7 percent points to 36.5 percent. Excluding the accounting effects, restructuring costs, the one-time gains and hyperinflation in Argentina, underlying OIBDA was down 2.9 percent to EUR 3.896 billion. The net profit fell slightly, by 4.5 percent to EUR 862 million, as lower tax was offset by higher depreciation and financial expenses.
Operating cash flow jumped 45.1 percent to EUR 2.607 billion, as capital expenditure reduced 25 percent to EUR 1.831 billion. Net debt was down by EUR 151 million in Q2 to EUR 40.23 billion.
