Telefonica organic sales up 1.5% in Q1 on Brazil gains

News General Global 11 MEI 2017
Telefonica organic sales up 1.5% in Q1 on Brazil gains

Telefonica reported a year on year organic revenue rise of 1.5 percent to EUR 13.13 billion in the first quarter, driven by double-digit growth in mobile data sales and a fast recovering Brazilian market, which helped to offset weaker performance in Spain and Germany. Adjusted operating income before depreciation and amortisation (OIBDA) was up 4.8 percent on an organic basis to EUR 4.02 billion in Q1, attributed to cost containment efforts and synergy efficiencies, while the margin remained stable at 30.6 percent. Net profit soared to EUR 779 million in the first quarter, a year-on-year increase of 42.2 percent on a reported basis.

The recovery of the Brazilian real resulted in Telefonica Brazil becoming the company’s leading unit in revenue terms, with earnings up 1.6 percent year on year to EUR 3.17 billion in Q1, compared to Spain’s EUR 3.06 billion, down 2.6 percent year on year. The group also posted disappointing results in two of its main Latin American markets, with OIBDA in Mexico and Peru declining 33.8 percent and 16.5 percent respectively.

Telefonica’s net debt remained a concern, rising EUR 171 million at the end of the quarter to EUR 48.8 billion, although the company described it as the smallest first-quarter debt increase in the last three years. Free cash flow was EUR 599 million, up EUR 530 million compared to the year-earlier quarter. Looking ahead, the company reiterated its guidance for the year and maintained its plan to pay a cash dividend of EUR 0.40 in 2017.

The operator’s overall customer base remained stable at 347 million accesses at the end of March, with average revenue per user up 2.1 percent on an organic basis. Telefonica was keen to stress that the weight of higher-value services continued to increase, with LTE customers up 1.7 times, mobile contracts up 5 percent and FTTx and cable customers up 21 percent.

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General

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Telefonica del Peru,  Telefonica Espana,  Telefonica Mexico,  Telefonica Brazil,  Telefonica

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