Telefonica says it met guidance in 2009

26 Feb 2010

Spanish telecoms giant Telefonica claims to have met its forecasts for 2009 following the release of its financial results for the twelve-month period ended 31 December. The company said that, under the criteria used to establish 2009 guidance, revenue for the year rose 0.3% year-on-year on an organic basis. However, in terms of reported revenue Telefonica posted a 2.1% y-o-y decline, with the company generating a turnover of EUR56.73 billion (USD76.5 billion). The company’s Latin American division meanwhile was the only one to post an annual rise in revenue, reporting turnover of EUR22.98 billion, up 3.7% against FY2008 on a reported basis; Telefonica’s domestic unit (Telefonica de Espana) and European operations division (Telefonica Europe) both posted declines of 5.4% in reported revenues. Net income meanwhile rose 2.4% in the twelve-month period, with Telefonica posting a profit of EUR7.78 billion, while CAPEX for the year was EUR7.46 billion, just under the EUR7.5 billion expected.

Telefonica said that total accesses across all group units rose by 5.1% to approximately 265 million, noting a sharp increase in mobile (up 7.4% year-on-year), fixed broadband (8.2%) and pay-TV (9.8%) accesses. Mobile broadband connections passed 15 million at end-2009, up from nine million at end-2008. In addition it noted that there had been a particular surge in uptake in the last three months of the year, reporting that in the final fiscal quarter mobile net adds totalled 6.8 million, almost half of the 15 million registered in the full year period.

On the back of the results Telefonica has announced its guidance for 2010, saying that it expects consolidated revenue to rise between 1% and 4% year-on-year, while operating income before depreciation and amortisation (OIBDA) will climb between 1% and 3%. CAPEX for 2010 will be between EUR7.45 billion and EUR7.65 billion.

Spain, Telefonica