TIDMTDE
RNS Number : 6044N
Telefonica SA
27 October 2016
FINANCIAL HIGHLIGHTS
-- Commercial activity focused on high value customers: LTE
(1.9x year-on-year), smartphones (+20%), fibre + VDSL (+26%),
mobile contract (+6%) and pay TV (+3%).
(R) Differential infrastructure; 33.7 million homes passed with
fibre (+11% year-on-year); LTE coverage of 58% (86% in Europe).
-- Revenues for the quarter totalled 13,080 million euros (-0.2% organic year-on-year).
(R) Solid growth in service revenues (+1.4% organic
year-on-year), stable vs. the previous quarter.
-- Acceleration of organic growth of OIBDA year-on-year (+3.1%)
and operating cash flow (+10.8%).
(R) OIBDA margin expansion (31.9%; +1.0 percentage points
organic year-on-year) due to synergies and efficiencies.
(R) CapEx in the quarter (-3.8% organic year-on-year) continued
to focus on growth and transformation.
-- Significant improvement in reported OIBDA (4,175 million
euros; -1.0% year-on-year; +6.1 p.p. vs. the previous quarter)
-- Free cash flow of 1,500 million euros in the quarter (+7.1%
year-on-year) and 2,315 million euros in
January-September (+91.9% year-on-year), 0.47 euros per
share.
-- Net income for the first nine months stood at 2,225 million euros.
(R) Strong progress in quarterly net income (+38.5%
year-on-year) and earnings per share (+44.8%).
-- Net financial debt decreased by 2,584 million euros in the
quarter and stood at 49,984 million euros.
-- T. España; solid performance of service revenues, OIBDA and
operating cash flow (+0.6%, +1.8%, and +7.1%
year-on-year respectively, excluding non-recurrents). The
success of Movistar "Fusión" is reflected in the strong growth of
10.8% year-on-year of quarterly ARPU and the low level of churn
(1.3%).
-- T. Brasil maintained its leadership in mobile contract and
UBB and progressed in synergies and efficiencies, translating into
accelerated revenue, OIBDA and operating cash flow growth in
July-September (+1.1%, +9.5% y +37.9%, respectively) with strong
expansion of margins (OIBDA +2.5 percentage points; OpCF +4.0
percentage points).
-- T. Deutschland; acceleration of year-on-year OIBDA growth in
the quarter (+3.6% organic and excluding non-recurrents) and
expansion of OIBDA margin thanks to the capture of incremental
synergies (+2.2 percentage points excluding non-recurrents).
-- T. UK maintained a solid commercial momentum and improved
year-on-year trends in the main metrics (revenues +0.1% ex "O2
Refresh"; OIBDA +1.6% and margin +1.0 percentage points).
-- T. Hispanoamérica; sequential improvement in quarterly
revenue growth in the quarter (+0.5 percentage points) and returned
to OIBDA and margin growth (+6.3% and +0.6 percentage points,
respectively), as a result of the higher penetration of high-value
services, cost efficiencies and the lower impact of currency
depreciations vs. the USD in 2015 on the business.
Comments from José María Álvarez-Pallete, Executive
Chairman:
"Third quarter results showed growth acceleration in the main
operational metrics, driven by a broad improvement across different
business units, and reflected the success of our transformation
strategy, inititated before most of our competitors, focused on
network diferentiation as a way to capture and monetise the growing
demand for data, and on efficiencies, cost optimisation and sinergy
capture.
All this translated into an acceleration in deleverage in the
quarter, mainly due to the significant improvement in free cash
flow generation. In this context, the Company has decided to modify
the dividend in order to strengthen the balance sheet and intensify
organic deleverage, maintaining an attractive shareholder
remuneration".
TELEFÓNICA
SELECTED FINANCIAL
DATA
Unaudited figures (Euros
in millions)
January-September %Chg July-September % Chg
2016 Reported Organic 2016 Reported Organic
Revenues 38,315 (6.7) 0.8 13,080 (5.9) (0.2)
Telefónica
España (1) 9,497 3.4 (0.1) 3,169 (0.4) (0.4)
Telefónica
Deutschland 5,567 (4.5) (4.5) 1,876 (5.2) (5.2)
Telefónica UK 5,140 (11.8) (2.8) 1,676 (17.1) (2.1)
Telefónica
Brasil (2) 8,039 (5.1) 0.9 2,952 7.9 1.1
Telefónica
Hispanoamérica 9,144 (15.1) 6.4 3,129 (13.9) 4.1
Other companies &
eliminations 928 (5.1) 279 (20.8)
OIBDA 11,931 (4.6) 3.1 4,175 (1.0) 3.1
Telefónica
España (1) 3,955 (0.3) 0.8 1,372 (0.6) (0.6)
Telefónica
Deutschland 1,314 3.3 2.6 464 15.1 4.2
Telefónica UK 1,375 (8.5) 1.0 458 (14.0) 1.6
Telefónica
Brasil (2) 2,629 1.5 7.8 982 18.1 9.5
Telefónica
Hispanoamérica 2,672 (17.3) 1.2 970 (10.1) 6.3
Other companies &
eliminations (14) (75.2) (71) n.m.
OIBDA margin 31.1% 0.7 p.p. 0.7 p.p. 31.9% 1.6 p.p. 1.0 p.p.
Telefónica (0.1 (0.1
España (1) 41.6% (1.6 p.p.) 0.4 p.p. 43.3% p.p.) p.p.)
Telefónica
Deutschland 23.6% 1.8 p.p. 1.7 p.p. 24.7% 4.4 p.p. 2.3 p.p.
Telefónica UK 26.8% 1.0 p.p. 1.0 p.p. 27.3% 1.0 p.p. 1.0 p.p.
Telefónica
Brasil (2) 32.7% 2.1 p.p. 2.1 p.p. 33.3% 2.9 p.p. 2.5 p.p.
Telefónica (1.5
Hispanoamérica 29.2% (0.8 p.p.) p.p.) 31.0% 1.3 p.p. 0.6 p.p.
Operating Income (OI) 4,800 (9.0) 2.8 1,718 (5.5) (0.4)
Net income 2,225 (22.0) 983 38.5
Basic earnings per
share (euros) 0.41 (23.6) 0.19 44.8
CapEx 6,016 (22.4) 0.5 2,362 5.3 (3.8)
Telefónica
España (1) 1,283 (3.0) (0.4) 393 (9.1) (9.1)
Telefónica
Deutschland 748 (60.6) 5.7 316 30.2 30.4
Telefónica UK 654 0.3 10.5 238 0.8 18.0
Telefónica
Brasil (2) 1,369 (8.8) (10.3) 577 6.8 (6.6)
Telefónica
Hispanoamérica 1,798 (18.4) 5.7 782 7.3 (17.2)
Other companies &
eliminations 164 (6.5) 56 (11.8)
Spectrum 341 (78.5) n.m. 331 c.s. n.m.
Telefónica
España (1) 7 (85.0) n.m. - - -
Telefónica
Deutschland 4 (99.6) n.m. 2 6.9 n.m.
Telefónica UK - - - - - -
Telefónica
Brasil (2) 47 n.m. n.m. 47 n.m. n.m.
Telefónica
Hispanoamérica 282 (17.5) n.m. 282 c.s. n.m.
OpCF (OIBDA-CapEx) 5,915 24.4 5.7 1,814 (8.2) 10.8
Telefónica
España (1) 2,672 1.0 1.3 979 3.2 3.3
Telefónica
Deutschland 566 c.s. (0.9) 148 (7.7) (23.8)
Telefónica UK 721 (15.2) (6.3) 219 (25.8) (11.4)
Telefónica
Brasil (2) 1,260 15.7 34.9 405 39.2 37.9
Telefónica
Hispanoamérica 874 (15.1) (4.8) 188 (46.4) 55.4
Other companies &
eliminations (178) (22.8) (125) 76.8
- Reconciliation included
in the excel
spreadsheets.
Notes:
- Since the second quarter of 2016 Telefónica's operations in the United Kingdom are
no longer reported as discontinued operations within Telefónica Group and all its assets
and liabilities have ceased to be reported as "held for sale", and have been reclassified
back into full consolidation within Telefónica Group financial statements, in compliance
with International Financial Reporting Standards (IFRS). For comparative purposes, the results
of Grupo Telefónica of 2015 and the first quarter of 2016 are reported following the
same criteria.
- 2015 and 2016 reported figures include hyperinflationary adjustments in Venezuela in both
years.
- Organic criteria: Assumes constant exchange rates as of 2015 (average FX in 2015) and considers
constant perimeter of consolidation. In OIBDA and OI terms, excludes write-downs, capital
gains/losses from the sale of companies, tower sales, material non-recurring impacts and restructuring
costs. CapEx also excludes investment in spectrum.
- OIBDA and OI are presented before brand fees and management fees.
- OIBDA margin calculated as OIBDA over revenues.
(1) DTS has been consolidated since 1 May 2015.
(2) GVT has been consolidated since 1 May 2015.
DISCLAIMER
This document may contain forward-looking statements regarding
intentions, expectations or forecasts related to the Telefónica
Group (hereinafter, the "Company" or "Telefónica"). These
statements may include financial forecasts and estimates based on
assumptions or statements regarding plans, objectives and
expectations that make reference to different matters, such as the
customer base and its evolution, growth of the different business
lines and of the global business, the market share, possible
acquisitions, divestitures or other transactions, Company results
and other aspects related to the activity and situation of the
Company.
The forward-looking statements can be identified, in certain
cases, through the use of words such as "expectation",
"anticipation", "purpose", "belief" or similar expressions, or the
corresponding negative forms, or through the own predictive nature
of all issues referring to strategies, plans or intentions. These
forward-looking statements or forecasts reflect the current views
of Telefónica with respect to future events, do not represent, by
their own nature, any guarantee of future fulfilment, and are
subject to risks and uncertainties that could cause the final
developments and results to differ substantially from the ones put
forward through these intentions, expectations or forecasts. These
risks and uncertainties include those identified in the documents
containing more comprehensive information filed by Telefónica
before the different supervisory Authorities of the securities
markets in which its shares are listed and, in particular, the
Spanish National Securities Market Commission.
Except as required by applicable laws, Telefónica does not
assume any obligation to publicly update these statements to adapt
them to events or circumstances taking place after this document,
including changes in the Company's business, in its business
development strategy or any other unexpected circumstance.
This document may contain summarized, non-audited or Non-GAAP
financial information. The information contained herein should
therefore be considered as a whole and in conjuction with all the
public information regarding the Company available, including, if
any, other documents released by the Company that may contain more
detailed information.
Finally, it is hereby stated that neither this document or any
of its contents constitutes an offer to purchase, sale or exchange
any securities, a solicitation of any offer to purchase, sale or
exchange of securities, or a recommendation or advice regarding any
security.
For further information please refer to the information on 2016
third quarter financial results filed by the Company and also
available on the Company's website: www.telefonica.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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