Telefonica organic revenue growth improves to 3.8% in Q1

News General Latin America and the Caribbean 10 MEI 2019
Telefonica organic revenue growth improves to 3.8% in Q1

Telefonica reported organic revenue growth improving to 3.8 percent in the first quarter, led by the UK and South America as well as continued growth in its home market Spain. OIBDA was up a slower 1 percent on an organic basis, and the company maintained its forecast for both figures to grow around 2 percent in the full year.

The company's reported revenues fell by 1.7 percent to EUR 11.797 billion in Q1, hurt by currency effects, while OIBDA was up 10.3 percent to EUR 4.264 billion, helped by the new accounting rules for leases. Excluding a number of one-time items, underlying OIBDA fell 3.7 percent year-on-year to EUR 3.730 billion. 

Net profit increased 10.6 percent to EUR 926 million, thanks to lower taxes, and free cash flow more than doubled to EUR 1.408 billion, helped by the change in lease accounting. Capex rose 4.3 percent to EUR 1.554 billion, leading to operating cash flow of EUR 2.710 billion, up by 14.2 percent.  

Telefonica's net debt was down 5.7 percent year-on-year to EUR 40.381 billion at the end of March. Since the end of the quarter, the company said it had further reduced debt by EUR 1.7 billion thanks to asset sales. 

Organic revenue growth included a 2.6 percent increase in service revenue and 15.6 percent growth in handset sales. The number of subscriptions was little changed year-on-year after adjusting for divestments. Postpaid mobile customers were up 6 percent to 124.8 million, FTTx/cable subscribers rose 18 percent to 13.6 million, and pay-TV customers increased 3 percent to 8.8 million. 

Categories:

General

Companies:

Telefonica

Regions:

Latin America and the Caribbean

Countries:

Spain

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Financial figures, Wireline, Wireless

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