Wednesday, May 8, 2013

Telefónica: Brazil is its Largest Market, Surpassing Spain

Telefónica reported Q1 2013 revenue of 14,141 million euros, a decrease of 1.6% compared to a year earlier not counting impacts from exchange rate fluctuations, and down 8.8% in actual terms.  The company's OIBDA reached 4,567 million euros and the operating result was 2,066 million euros, down 0.1% and 2.9%, respectively compared to Q1 2012. Telefónica Europe is impacted by the macroeconomic situation, the intense level of competition and the negative impact of regulation, while Telefónica Latin America continues to grow.

At the end of March the Telefónica Group had a customer base of almost 316 million accesses (+2%), over 78% of whom are mobile customers. There was acceleration in the growth of the contract mobile accesses to +8% in the quarter, with year-on-year increases reaching +13% in Latin America.

Some other highlights for Q1:

  • Latin America generated over 50% of the consolidated revenue.
  • Brazil has become Telefónica's biggest market in revenue generation, surpassing Spain for the first time.
  • Mobile accesses stood at 247.3 million at the end of the quarter (+3% year-on-year).
  • Mobile broadband accesses -accesses with a data tariff attached- posted a solid 34% year-on-year growth to surpass 55 million at the end of March 2013 and accounted for 22% of mobile accesses (+5 percentage points year-on-year).
  • Smartphones accounted for 20% of the total mobile access base (+6% pp year on year).
  • Non-SMS mobile data revenues increased 21.9% in organic terms and already represent 62% of total mobile data revenues (56% in the first quarter of 2012).
  • Telefónica Brasil served 91.1 million at the end of March, up 1% year-on-year despite the application of more restrictive accounting criteria for prepay customers. Mobile accesses stood at 76.0 million (+2% year-on-year), with contract segment growing by 17% year-on-year and accounting for 26% of mobile accesses.
  • In the first quarter of 2013, Telefónica's net financial debt was negatively impacted by exceptional effects, specifically the devaluation of the Venezuelan bolivar (€873M) and the payments for spectrum auctions (€701M) as well as the recurrent first quarter´s seasonal effect.
  • Telefónica invested 1,941 million euros in the first quarter of the year, including the acquisition of spectrum in the United Kingdom and Uruguay. 82% of the total investment was in growth areas, specifically 3G, 4G and fibre networks.
  • Telefónica has 132,726 employees worldwide, which is about the same as last year.

See also