Quarterly results January-Jun

RNS Number : 1367Q
Telefonica SA
29 July 2010
 



TELEFÓNICA GROUP

Financial Highlights

 

·     Consolidated revenue rose 5.4% year-on-year in the first half of 2010 to 29,053 million euros, with a significant acceleration during the second quarter (+1.7% to the end of March) and improvements across all regions:

o  The solid revenue performance reflects the Company's priority to focus on capturing the growth opportunities in its markets.

o  Organic growth in revenues was 2.0% (+0.9% in the first quarter), driven by the pickup in commercial activity in the last few quarters. Stripping out impacts from regulatory measures, organic revenue growth reached 3.3%.

·     Telefónica maintains its commercial momentum across all its markets, reaching 278 million accesses, 5.2% more than a year ago (+7.2% in organic terms):

o  The growth in accesses accelerated compared to previous quarters (+6.1% organic growth in March).

o  Total gross adds rose 16.2% year-on-year in the first half, while churn decreased year-on-year by 0.1 percentage points to 2.2%.

o  Mobile telephony continued to post strong growth, with organic net adds (8.9 million customers) 1.8 times higher than in the first half of 2009. There was also a significant improvement in the quality of the new customers:  56% of organic total net adds were contract, compared to 46% in the first half of 2009.

o  Total broadband accesses reached 38 million, with significant growth rates in both retail fixed broadband (+9.2% year-on-year organic growth; +25.2% reported) and in mobile broadband accesses (+84.6%).

·     OIBDA totalled 10,905 million euros in for the first six months, virtually flat on June 2009 (+0.04% year-on-year), after recording a growth of 4.0% in the second quarter of 2010. The OIBDA margin reached 37.5% in the first half, a sequential improvement of 0.8 percentage points:

o  In organic terms, OIBDA grew in the second quarter of 2010, showing a clear improvement relative to the first three months of the year (-3.4% in the first quarter; -2.3% in the first half). The negative impact of regulatory measures and non-recurring items dragged 2.7 percentage points from year-on-year OIBDA growth in the first half.

·     The Group continues to diversify its operations, and now generates 67% of its revenues and 60% of its OIBDA outside Telefónica España, despite the sharp devaluation of the Venezuelan bolivar.

·     Cash generation remains strong, with operating cash flow (OIBDA-CapEx) reaching 7,989 million euros in the first six months excluding spectrum acquisition (-1.7% year-on-year):

o  In organic terms, operating cash flow dropped 3.4%, but rose in Telefónica Latinoamérica (+6.3% year-on-year) and Telefónica Europe (+3.1% year-on-year).

o  Telefónica strengthened its competitive position with the acquisition of spectrum in Germany (1,379 million euros).

·     Net income totalled 3,775 million euros in the first six months of the year (+9.4% year-on-year). 

·     The ratio of net debt + commitments to OIBDA stood at 2.3x at the end of June, reflecting the Company's financial strength.

·     The Company reiterates all its financial targets for this year and through 2012, including dividends. 

·     Telefónica España's revenues continue to recover gradually, thanks to increased commercial activity and improved traffic volumes. As a result, the year-on-year decrease in revenues slowed to 3.4% in comparable terms in the first half of the year.

·     In Latin America, revenues registered organic growth of 6.2% in the first six months, 0.8 percentage points more than in the first quarter, driven by the improved performance of both the wireline and wireless businesses, while OIBDA rose 3.9% in organic terms (+0.5 percentage points compared to the first three months of the year). 

·     Telefónica Europe's year-on-year revenue growth ramped up to 6.5% in organic terms and excluding regulatory effects (+5.4% in the first quarter), with healthy growth in the UK and German markets driven by the growing contribution from the mobile internet business.

 

Note 1:         Organic growth: in financial terms, it assumes constant average exchange rates as of H1 09, excludes changes in the consolidation perimeter and impacts from hyperinflationary accounting. OIBDA excludes the impact of the capital gain from the sale of Manx Telecom recorded in the second quarter of 2010. CapEx excludes investment in spectrum in Germany made in the second quarter of 2010 (1,379 million euros). In terms of accesses, it excludes changes in the consolidation perimeter; net adds figures exclude the disconnection of customers made in the second quarter of 2010.
Note 2:         Growth ex-regulatory impacts: the impact from MTR cuts is excluded.
Note 3:         Revenue growth in comparable terms in Spain: excludes the impact from the Universal Service Obligation in the first quarter of 2009 and revenue from Telyco Morocco in the first half of 2009.

 


 

TELEFÓNICA GROUP







SELECTED FINANCIAL DATA







 Unaudited figures (Euros in millions)

January-June

January-June



%Change










2010 

2009 


Reported 

Organic 

Guidance Criteria 















Revenues (1)

29,053 

27,565 


5.4 

2.0 

3.3 

Telefónica España (2)

9,321 

9,757 


(4.5)

(4.1)


Telefónica Latinoamérica

12,063 

10,946 


10.2 

6.2 


Telefónica Europe (1)

7,278 

6,571 


10.8 

3.2 
















OIBDA (1)

10,905 

10,900 


0.0 

(2.3)

(1.2)

Telefónica España (2)

4,377 

4,838 


(9.5)

(9.5)


Telefónica Latinoamérica

4,490 

4,233 


6.1 

3.9 


Telefónica Europe (1)

2,035 

1,879 


8.3 

(0.4)
















OIBDA margin (1)

37.5%

39.5%


(2.0 p.p.)

(1.7 p.p.)


Telefónica España

47.0%

49.6%


(2.6 p.p.)

(2.8 p.p.)


Telefónica Latinoamérica

37.2%

38.7%


(1.4 p.p.)

(0.9 p.p.)


Telefónica Europe (1)

28.0%

28.6%


(0.6 p.p.)

(1.0 p.p.)
















Operating Income (OI) (1)

6,456 

6,493 


(0.6)

0.2 


Telefónica España

3,388 

3,771 


(10.2)

(10.1)


Telefónica Latinoamérica

2,586 

2,409 


7.4 

12.5 


Telefónica Europe (1)

552 

428 


29.0 

10.5 
















Net income

3,775 

3,452 


9.4 



Basic earnings per share (euros)

0.83 

0.76 


10.1 
























OpCF (OIBDA-CapEx) (1)(3)

6,610 

8,125 


(18.6)

(3.4)


Telefónica España (2)

3,547 

4,099 


(13.5)

(13.4)


Telefónica Latinoamérica

3,239 

3,018 


7.3 

6.3 


Telefónica Europe (1)(3)

(100)

1,130 


c.s. 

3.1 

















DISCLAIMER

This document contains statements that constitute forward looking statements about Telefónica Group (going forward, "the Company" or Telefónica) including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations which refer to the intent, belief or current prospects of the customer base, estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company.

The forward-looking statements in this document can be identified, in some instances, by the use of words such as "expects", "anticipates", "intends", "believes", and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions.

Such forward-looking statements, by their nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed in our forward looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Telefónica with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator.

Analysts and investors, and any other person or entity that may need to take decisions, or prepare or release opinions about the securities issued by the Company, are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Except as required by applicable law, Telefónica undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telefónica's business or acquisition strategy or to reflect the occurrence of unanticipated events.

Neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities.

Finally, this document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Telefónica.

 

To view the full document, please paste the following URL into the address bar of your browser

http://www.rns-pdf.londonstockexchange.com/rns/1367Q_-2010-7-29.pdf

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR PGUCGMUPUUMB

Companies

Telefonica SA (0TDE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today