Telefonica reports 8.7% full year revenue increase driven by LatAm growth

26 Feb 2016

Spanish telecoms giant Telefonica recorded an 8.7% year-on-year (y-o-y) increase in total turnover in the twelve months ended 31 December 2015. Generating revenues of EUR47.219 billion (USD52.4 billion), the group pointed to the ‘particularly noteworthy’ performance from its Latin American unit – Telefonica Hispanoamerica – which it said reported double-digit revenue growth. Further, Telefonica was keen to highlight that the diversification of its assets was ‘evident in the revenue structure’, with domestic unit Telefonica Espana, Telefonica Deutschland and Telefonica Brasil accounting for 66% of revenues in 2015, while Telefonica Hispanoamerica represented 30% of the total, both relatively stable against 2014.

In the period under review, operating income before depreciation and amortisation (OIBDA) was said to have improved its pace of growth in organic terms (+3.6%) against 2014. Nonetheless, at EUR11.414 billion in FY15 this represented a 17.2% decline in reported terms from the EUR13.781 billion reported a year earlier, though Telefonica noted OIBDA would have reached EUR14.926 billion in underlying terms. Net income meanwhile as EUR2.745 billion in 2015, down from EUR3.001 billion a year earlier.

With regard to operations, at the end of 2015 Telefonica had 322.252 million total accesses on its books, the lion’s share of which – 247.085 million – were mobile. Total wireless connections were actually down year-on-year, however, having declined from 249.979 million at end-2014, attributed to ‘the more restrictive calculation of the prepay base in [Brazil]’. Despite this, 4G accesses continued to increase to reach a total of 29.708 million LTE-based connections at the end of the reporting period, having more than tripled y-o-y from 9.831 million. Fixed broadband connections increased notably, rising by 18.7% year-on-year to 20.950 million at the end of last year, while fibre-based accesses accounted for 6.100 million of that figure, up from 1.755 million twelve months previously. Fixed voice accesses (including fixed-wireless and VoIP) were also up, rising 7.9% to 39.488 million.

Spain, Telefonica