TIDMTDE
RNS Number : 8482E
Telefonica SA
11 May 2017
FINANCIAL HIGHLIGHTS
-- Main financial and operational metrics growing.
(R) Continued customer base quality improvement: LTE (1.7x
y-o-y), smartphones (+18%), FTTx and cable (+21%) and mobile
contract (+5%).
(R) Revenues (EUR13,132m) were up 5.0% vs. January-March 16
(+1.5% organic driven by service revenues +1.7%).
(R) Mobile data revenues maintained double-digit growth (+13.5%
y-o-y organic) and accounted for 58% of mobile service revenues
(+5.4 p.p. y-o-y organic).
(R) OIBDA (EUR4,021m) grew 4.8% y-o-y in the quarter (+1.3%
organic). OIBDA margin stood at 30.6% and remained stable
y-o-y.
(R) Underlying OIBDA excluded EUR88m in restructuring costs and
reached EUR4,109m (+6.5% y-o-y).
(R) Operating cash flow (OIBDA-CapEx excluding spectrum;
EUR2,404m) growth accelerated in the quarter to 12.1% y-o-y (+15.0%
in underlying terms to EUR2,492m).
(R) Net income reached EUR779m (+42.2% y-o-y) and earnings per share stood at EUR0.14 (+48.8%).
-- Progress in the Company's transformation.
(R) Infrastructure 39.9m premises passed with FTTx and cable; LTE coverage 64% (88% in Europe).
(R) New customer relationship model based on cognitive intelligence, a pioneer in the sector.
-- Focus on deleverage.
(R) Free cash flow totalled EUR599m, reflecting seasonality, and
improved by EUR530m vs. January-March 2016.
(R) Net debt stood at EUR48,766m at the end of March 2017.
-- The Company reiterates its guidance and dividend announced for 2017.
-- T. España: service revenues fell by 1.5% organic y-o-y and
OIBDA by 2.4%; while operating cash flow
(OIBDA-CapEx) growth accelerated to +8.3%.
-- T. Brasil accelerated the growth rate of revenues (+1.6%
y-o-y organic), OIBDA (+7.5%) and operating cash flow (+21.6%).
-- In T. Deutschland, OIBDA growth (+1.4% y-o-y organic) and
margin expansion (+1.4 p.p.) continued, while operating cash flow
returned to grow (+7.7%), reflecting incremental synergies.
-- T. UK reinforced its position as a leading mobile operator in
the market (contract customers +2% y-o-y), with growth in revenues
and OIBDA (+2.1% and +0.6% y-o-y organic, respectively).
-- T. Hispanoamérica: solid revenue (+9.2% y-o-y organic) and
OIBDA (+6.2%) pace of growth, with a significant operating cash
flow increase (+23.6%).
Comments from José María Álvarez-Pallete, Executive
Chairman:
"First quarter results reflected a further step forward in our
business model, which is focused on the pursuit of sustainable
growth. The differential quality of our asset portfolio enables us
to offer differential services, which translated into improvements
in our results; in particular: i) the growth in main financial
metrics, including the positive impact of foreign exchange rates in
the quarter; ii) the savings obtained from synergy capture and
process simplification; and iii) the strengthening of our balance
sheet and the strong free cash flow growth, 9x higher vs.
January-March 2016. In addition, we have announced the launch of
AURA, a new, more innate and simple customer relationship model, a
pioneer in the area of cognitive intelligence.
At the same time, the results are aligned with our expectations
and allow us to reiterate the guidance set for 2017".
TELEFÓNICA
SELECTED FINANCIAL DATA
Unaudited figures (Euros in millions)
January-March % Chg
2017 Reported Organic
Revenues 13,132 5.0 1.5
Telefónica España 3,066 (2.6) (2.6)
Telefónica Deutschland 1,771 (4.7) (4.7)
Telefónica UK 1,601 (8.6) 2.1
Telefónica Brasil 3,165 30.2 1.6
Telefónica Hispanoamerica 3,285 7.6 9.2
Other companies & eliminations 244 (8.6) (3.3)
Telxius 188 36.4 5.4
-------------------------------------------------------------
OIBDA 4,021 4.8 1.3
Telefónica España 1,143 (8.6) (2.4)
Telefónica Deutschland 400 2.0 1.4
Telefónica UK 416 (9.8) 0.6
Telefónica Brasil 1,104 37.2 7.5
Telefónica Hispanoamerica 904 4.4 6.2
Other companies & eliminations 53 (15.8) (44.7)
Telxius 92 n.m. 14.3
-------------------------------------------------------------
OIBDA margin 30.6% (0.1 p.p.) (0.0 p.p.)
Telefónica España 37.3% (2.4 p.p.) 0.1 p.p.
Telefónica Deutschland 22.6% 1.5 p.p. 1.4 p.p.
Telefónica UK 26.0% (0.4 p.p.) (0.4 p.p.)
Telefónica Brasil 34.9% 1.8 p.p. 1.9 p.p.
Telefónica Hispanoamerica 27.5% (0.8 p.p.) (0.8 p.p.)
Operating Income (OI) 1,570 3.6 5,2
Net income attributable to equity holders of the Parent 779 42.2
Basic and diluted earnings per share (euros) 0.14 48.8
CapEx 1,621 (4.4) (8.4)
Telefónica España 333 (22.7) (22.7)
Telefónica Deutschland 208 (5.1) (4.2)
Telefónica UK 225 17.1 30.8
Telefónica Brasil 397 14.1 (11.0)
Telefónica Hispanoamerica 430 (6.8) (9.0)
Other companies & eliminations 28 (36.6) (35.2)
Telxius 13 (37.1) (41.6)
-------------------------------------------------------------
Spectrum 4 140.7 161.3
Telefónica España - - -
Telefónica Deutschland 0 n.m. n.m.
Telefónica UK - - -
Telefónica Brasil - - -
Telefónica Hispanoamerica 3 n.m. n.m.
OpCF (OIBDA-CapEx) 2,400 12.0 8.9
Telefónica España 810 (1.2) 8.3
Telefónica Deutschland 192 11.0 7.7
Telefónica UK 191 (29.1) (21.0)
Telefónica Brasil 707 54.7 21.6
Telefónica Hispanoamerica 474 17.3 23.6
Other companies & eliminations 26 30.0 (52.9)
Telxius 79 n.m. 35.0
------------------------------------------------------------- --------------- ------------ -----------
- 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 and all its assets and liabilities have ceased
to be reported as "held for sale", and have been reclassified back into full consolidation,
in compliance with International Financial Reporting Standards (IFRS). For comparative purposes,
the results of Telefónica Group of the first quarter of 2016 are reported following the
same criteria.
- 2016 and 2017 reported figures include hyperinflationary adjustments in Venezuela in both
years.
- OIBDA and OI are presented before brand fees and management fees.
- Telxius financials are fully reported in Other Companies & Eliminations in T. Group since
1 January, 2017, reflecting the final integration into Telxius of the mobile communications
towers transferred from T. España, T. Deutschland, T. Brasil and T. Hispanoamérica
segments and the international submarine fiber optic cable (which was already being reported
within Other Companies and Eliminations). As a consequence, 2017 reported figures for these
segments follow the same criteria. In addition, 2016 segment results have been revised to
reflect the different dates of asset integration into Telxius, affecting T. España (since
1 January, 2016), T. Deutschland (since 1 May, 2016), T. Brasil (since 1 April, 2016) and
T. Hispanoamérica (T. Perú since 1 April 2016 and T. Chile since 1 May 2016). Organic
y-o-y changes on segments reflect all the charges related to the towers transferred to Telxius
since 1 January 2016. The results of the segments do not include intra-group capital gains
resulting from the transfer of towers to Telxius in 2016.
- Organic criteria: Assumes constant exchange rates as of 2016 (average FX in 2016), excludes
the impact from hyperinflation in Venezuela in both years 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.
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 conjunction with all the
public information regarding the Company available, including, if
any, other documents released by the Company that may contain more
detailed information.
In October 2015, the European Securities Markets Authority
(ESMA) published guidelines on Alternative Performance Measures
(APM), applicable to the regulated information published from July
3, 2016. Information and disclosure related to APM used in the
present document are included in the Appendix. Moreover, recipients
of this document are invited to read our consolidated financial
statements and consolidated management report for 2016 submitted to
the Spanish National Securities Market Commission.
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 2017
first 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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