Telefonica Group has reported revenues of EUR48.4 billion (USD52.3 billion) for the twelve months ended 31 December 2019, down 0.6% on an annualised basis. Group OIBDA for the year under review decreased 2.9% to EUR15.1 billion, while operating income for 2019 slumped 30.4%, to EUR4.5 billion. Finally, net income attributable to equity holders of the parent company plummeted 65.7%, to EUR1.1 billion. Telefonica cites a deferred tax assets reversal in Mexico, the impact of the transformation of its Mexican operating model, the impairment of goodwill in Argentina and provisions for restructuring costs as factors behind its weakened bottom line.
The group performed poorly in Latin America, with annual revenues declining at all operating units. European sales improved however, with domestic unit Telefonica Espana growing full-year sales 0.5%, to EUR12.8 billion. Elsewhere, Telefonica Deutschland and Telefonica UK generated revenues of EUR7.4 billion (up 1.1%) and EUR7.1 billion (up 4.7%), respectively.
In operational terms, Telefonica reported consolidated mobile accesses of 261.533 million at 31 December 2019, of which 138.130 million were LTE users. In addition, the group reported 21.167 million internet and data users, 31.285 million fixed telephony accounts and 8.437 million pay-TV subscribers.
Jose Maria Alvarez-Pallete, chairman and CEO at Telefonica, commented: ‘2019 was an important year for Telefonica. We met our guidance, with all our core markets growing in organic terms. We are becoming more efficient based on digitalisation and shutting down legacy services … We begin 2020 with good momentum and focus on executing the plan we announced at the end of last year. Telefonica took five strategic decisions to generate value and long-term positive impact to all stakeholders. We are prioritising markets where we can be relevant for our customers – Spain, Brazil, Germany and the UK – while focusing on value creation in new digital services and infrastructure through T. Tech and T. Infra. The operational spin-off of [the Hispanoamerica unit] will open opportunities to crystallise value and finally, we are increasing agility and efficiency across all units.’