Telefonica Group has reported revenues of EUR12.2 billion (USD14.9 billion) for the three months ended 31 March 2018, down 5.0% on an annualised basis. The Spanish group’s first quarter activity was impacted by its Latin American subsidiaries: Telefonica Brasil saw its top-line plummet 14.5% year-on-year, to EUR2.7 billion; revenues for ‘Telefonica Hispam Sur’ (encompassing its businesses in Argentina, Chile, Peru and Uruguay) dropped 13.4% y-o-y to EUR1.8 billion; and sales for ‘Telefonica Hispam Norte’ (Colombia, Mexico, Central America, Ecuador and Venezuela) crashed 16.8% to EUR971 million.
Elsewhere, Telefonica Deutschland and Telefonica UK generated sales of EUR1.8 billion (-0.2%) and EUR1.6 billion (-1.0%), respectively, while domestic unit Telefonica Espana offered the only bright spot, recording a 1.0% increase in first quarter sales, to EUR3.1 billion. Group OIBDA for the first quarter decreased 3.9% to EUR3.9 billion, while operating income for 1Q18 edged up 4.3%, to EUR1.6 billion. Net income attributable to equity holders of the parent company was reported at EUR837 million, up 7.4% on an annualised basis.
Telefonica notes that exchange rate fluctuations in the January-March period had a negative impact on its key financial metrics – notably the depreciation of the Brazilian real (BRL) and the Argentine peso (ARS) against the euro (EUR).