LatAm bolsters Telefonica revenues

A strong performance in Latin America has helped Spanish incumbent Telefónica drive revenues of €28.56bn for the first half of 2013, although that figure is down 7.8 per cent year on year. Latin America now accounts for 51.4 per cent of the firm’s consolidated revenues, with regional revenue growing at 10.4 per cent for the second quarter year on year. But currency volatility in the region had a negative impact on OIBDA margin, the firm said.

OIBDA for the first half was €9.42bn and net income was €2.06bn.

The firm’s substantial debt pile was cut by €10bn in the year to end June 2013, Telefónica said, and now sits at €48.61bn, taking into account its recent disposals in Central America and Inversis and its exit from the Irish market. The firm is targeting debt of €47bn by the end of the year.

At the end of June, the Group’s customer base had hit 317.3 million, of which more than 78% (249.5 million) are mobile, the firm said. Postpay numbers increased by 8.1 per cent during the second quarter, with an additional 2.1 million users taking service pushing the number of contract subscribers to 85 million. Smartphone subscribers jumped by 8.2 million in the quarter, taking the firm’s smartphone penetration to 24 per cent of mobile customers.

“The acceleration in commercial activity in the quarter was mainly driven by Telefónica Latinoamérica, with mobile contract net adds rising by 44 per cent compared with the first quarter of 2013 and by 64 per cent compared with the second quarter of 2012,” Telefónica said in a statement. “There was also a marked improvement in the operating performance of the fixed business, mainly driven by broadband, with net adds in the quarter 1.6 times higher than in the January-March period, to reach 214 thousand accesses.”

César Alierta, Telefónica’s Executive Chairman, said the results “placed us in a strong position in terms of both business and financial evolution” and was enabling the firm to “form a leading operator in Europe’s largest market”.

The Broadband World Forum is taking place on the 22nd – 24th October 2013 at the RAI Exhibition and Convention Centre, Amsterdam. Click here to download a brochure for the event.

Tags: ,

Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.