Financial data

  • Solid operating and financial results.
    • Growth in high-value accesses: LTE (1.5x y-o-y; quarterly net additions of 8.6m), smartphones (+8%; +2.2m), FTTx/cable (+20%; +450k) and pay TV (+2%; +92k).
    • In the quarter, revenues (€13,162m) increased 4.8% y-o-y organic (-4.1% reported), highlighting service revenues (+4.3%; -4.9%, respectively) and mobile data revenues, which posted double-digit growth (+19.5%). In the twelve months, revenues (€52,008m) grew 3.4% vs. 2016 (-0.1% reported).
    • OIBDA (€3,913m in the quarter; €16,187m in 2017) increased 9.2% organic (+5.3% in 2017), with a positive contribution from all segments and OIBDA margin expansion (+1.4 p.p. y-o-y in October-December; +0.6 p.p. in 2017). In reported terms, OIBDA rose 22.8% in the quarter and 7.1% in the year.
    • Underlying OIBDA totalled €4,230m in the quarter (-5.2% y-o-y), excluding mainly restructuring costs (-€219m), regulatory contingencies (-€107m) and tower sales (€6m); and €16,638m in the year (+0.7% y-o-y).
    • Operating cash flow (OIBDA-CapEx) (€7,490m in January-December) maintained a strong pace of growth (+12.2% y-o-y organic), reflecting improved business performance and lower CapEx intensity (-1.2%).
    • Net income in 2017 reached €3,132m, +32.2% y-o-y, and earnings per share totalled €0.56, +33.9% (€693m and €0.12, respectively in the quarter).

 

  • UBB network deployment acceleration, efficient resources allocation.
    • 44.4m premises passed with FTTx/cable (+13% y-o-y), on own network, and 72% LTE coverage (+10.5 p.p.).
    • Focus on digitalisation; cross selling, higher customer value and satisfaction, and improved efficiency.
  • Substancial debt reduction.
    • Net debt stood at €44,230m as of December, 9.0% lower y-o-y (-€2,992m since September).
    • Free cash flow reached €4,947m in 2017 (+13.0% y-o-y).
  • T. España service revenues accelerated (+0.7% year-on-year in the quarter), OIBDA returned to growth (+0.5%), and operating cash flow increased 3.1% vs. January-December 2016, excluding provisions and capital gains.
  • T. Brasil Revenue and OIBDA y-o-y growth in the quarter (+0.9% and +3.7%) with margin expansion (+1.0 p.p.), underpinned by leadership in market share, efficiencies and integration synergies.
  • T. Deutschland mobile service revenues ex-regulation returned to growth (+0.8% y-o-y in the quarter), and OIBDA growth accelerated to 6.3% (+2.1 p.p. OIBDA margin expansion). Cash flow increased 27.4% vs. 2016.
  • T. UK: solid y-o-y growth in the quarter in mobile service revenues (+1.1%) and OIBDA (+3.7%), driven by positive commercial performance with a sustained leadership in churn levels.
  • T. Hispanoamérica solid growth in 2017 in revenues (€12,552m), OIBDA (€3,538m) and margin expansion; higher penetration in value and efficiency measures, despite competitive environment and regulatory drag.
  • Telefónica announced guidance (1) for 2018:
    • Revenues: growing around 1% vs. 2017 (despite the negative impact from regulation, approximately -0.9 p.p.).
    • OIBDA Margin: y-o-y expansion of around 0.5 p.p. (despite regulation dragging -1.6 p.p. to OIBDA y-o-y growth in 2018).
    • CapEx/Sales excluding spectrum: around 15%.
  • Telefónica confirms shareholder remuneration for 2017 and announces remuneration policy for 2018:
    • The second tranche of 2017 dividend (€0.20 per share in cash) to be paid in June 2018.
    • Dividend for 2018 of €0.40 per share in cash, to be paid in December 2018 (€0.20 per share) and in June 2019 (€0.20 per share).

(1) Guidance 2018:

Guidance 2018:

  • Assumes constant exchange rates (average in 2017), except for Venezuela (2017 and 2018 results converted at the closing synthetic exchange rate for each period) and considering a constant perimeter of consolidation.
  • Excludes:
    • Write-offs, capital gains/losses from the sale of companies, tower sales, restructuring costs and material non-recurring impacts are excluded.
    • CapEx excludes spectrum investments.

2017 adjusted base: Revenues (€52,037m) and OIBDA Margin (32.0%).

  • Consider:
    • Reported figures for full year 2017.
  • Includes:
    • January-September results of Teleasociadas in Colombia.
  • Excludes:
    • Write-offs, capital gains/losses from the sale of companies, tower sales, restructuring costs and material non-recurring impacts.
  • CapEx excludes spectrum investments.

 

Find-out more:

  • Telefónica S.A. January-December 2017 results report
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