Telefonica 2Q17 revenues up 1.9% to EUR13.0bn

27 Jul 2017

Telefonica Group has reported revenues of EUR13.0 billion (USD15.1 billion) for the three months ended 30 June 2017, up 1.9% on an annualised basis. Second quarter growth was spurred by the company’s Latin American subsidiaries; Telefonica Brasil saw its top-line surge 14.1% year-on-year (on a reported basis), to reach EUR3.0 billion, while Telefonica Hispanomerica (comprising units in Mexico, Central and South America) reported sales of EUR3.1 billion, up 5.9% y-o-y. Telefonica Espana recorded a 2.0% drop in its second quarter sales, to EUR3.2 billion, while Telefonica Deutschland and Telefonica UK generated sales of EUR1.8 billion (-3.4%) and EUR1.6 billion (-6.2%), respectively. Group OIBDA for the second quarter increased 6.1% to EUR4.2 billion, while operating income for 2Q17 jumped 14.9%, to EUR1.8 billion. Net income attributable to equity holders of the parent company was reported at EUR821 million, up 18.4% on an annualised basis.

In operational terms, Telefonica reported consolidated mobile accesses of 273.9 million at 30 June, of which 81.6 million were LTE users. In addition, the Spanish group reported 21.7 million internet and data users, 37.5 million fixed line accounts and 8.3 million pay-TV subscribers.

Jose Maria Alvarez-Pallete, executive chairman at Telefonica, commented: ‘During the second quarter of the year we have accelerated organic growth through the execution of our structural quality-based strategy, which was reflected in the strong competitive positioning in our main markets … All this, with a stronger balance sheet, after doubling Free Cash Flow in the last twelve months and reducing net debt by EUR5 billion, when considering the sale of the stake in [infrastructure unit] Telxius. The strength and better business trends in the first half of the year, as well as being well-positioned to continue capturing sustainable growth in the coming quarters, allow us to upgrade our guidance for 2017.’