Telefonica 2Q18 revenues drop 6.3% to EUR12.1bn

26 Jul 2018

Telefonica Group has reported revenues of EUR12.1 billion (USD14.2 billion) for the three months ended 30 June 2018, down 6.3% on an annualised basis. The company’s second quarter performance was impacted by its Latin American subsidiaries, all of which saw their top-line figures drop (on a reported basis). Telefonica Brasil saw its sales contract 16.7% year-on-year, to reach EUR2.5 billion in 2Q18, while revenues for ‘Telefonica Hispam Sur’ (encompassing its businesses in Argentina, Chile, Peru and Uruguay) plummeted 14.6% y-o-y to EUR1.8 billion. Sales for ‘Telefonica Hispam Norte’ (Colombia, Mexico, Central America, Ecuador and Venezuela) dropped 1.7% to EUR1.0 billion, meanwhile.

Elsewhere, domestic unit Telefonica Espana recorded a 0.2% increase in its second quarter sales, to EUR3.2 billion, while Telefonica Deutschland and Telefonica UK generated sales of EUR1.8 billion (-0.7%) and EUR1.6 billion (+1.9%), respectively. Group OIBDA for the second quarter increased 1.9% to EUR4.2 billion, while operating income for 2Q18 jumped 14.4%, to EUR2.1 billion. Net income attributable to equity holders of the parent company was reported at EUR902 million, up 9.9% on an annualised basis.

In operational terms, Telefonica reported consolidated mobile accesses of 271.901 million at 30 June, of which 106.618 million were LTE users. In addition, the Spanish group reported 21.912 million internet and data users, 35.973 million fixed line accounts and 8.736 million pay-TV subscribers.

Jose Maria Alvarez-Pallete, executive chairman at Telefonica, commented: ‘Our value offer to customers remains key, and we continue investing [in] and expanding our ultra-broadband networks. As of June, we have 47.3 million premises passed with proprietary FTTx/cable network, up 15% y-o-y. LTE coverage grew by six percentage points, to an average 73% [across] our footprint.’

Spain, Telefonica