Financial data

  • Sustained and profitable organic growth.
  • LTE (1.6x y-o-y), smartphones (+8%) and FTTx & cable (+21%).
  • Revenues in the quarter (€12,754m) grew 4.0% y-o-y in organic terms (+0.9 p.p. vs. the previous quarter), with service revenues acceleration (+3.3%; +0.4 p.p). Mobile data revenues double-digit growth continued (+16.3% y-o-y in organic terms).
  • In the quarter, OIBDA (€4,095m) grew 2.8% in organic terms y-o-y. OIBDA margin stood at 32.1% (-0.4 p.p. y-o-y organic). RLAH impact dragged -1.7 p.p. to OIBDA growth y-o-y.
  • Underlying OIBDA totalled €4,116m (-2.7% y-o-y) and excluded €21m restructuring costs.
  • Operating cash flow (OIBDA-CapEx) excluding the spectrum (€6,815m in January-September) maintained a strong pace of growth (+9.2% y-o-y organic), reflecting lower CapEx intensity (-2.3%).
  • Net income in the first nine months reached €2,439m, +9.6% year-on-year, and earnings per share totaled €0.44, +8.7% (€839m and €0.15, respectively in the quarter).
  • Company transformation continued.
  • 42.8m premises passed with FTTx & cable and 69% LTE coverage at September 2017.
  • The focus on E2E digitalisation of processes offers an unprecedent opportunity to transform the business, already delivering tangible benefits.
  • Reinforced balanced position.
  • Free cash flow in the first nine months reached €3,226m (+39.2% y-o-y).
  • Net debt in September stood at €47,222m, less 4.8% y-o-y (-€1,265m vs. June 2017). Debt will be further reduced by an additional €1,275m in the fourth quarter, following the closing of Telxius 40% stake sale.
  • T. España returned to growth in service revenues in the quarter (+0.4% y-o-y; €3,089m). OIBDA reached €1,306m (-0.6% y-o-y excluding capital gains from real estate sales). Operating cash flow grew 4.7% in January-September.
  • T. Brasil widened its quality gap and posted sustained y-o-y growth in revenues (+1.2% organic; €2,935m) and OIBDA (+6.0%; €1,024m), and posted 3 quarters in a row of OIBDA margin expansion.
  • T. Deutschland maintained a solid commercial momentum in July-September, revenues reached €1,850m (-1.3% organic) and OIBDA €457m in the quarter, while OIBDA margin expanded (+0.3 p.p. organic) despite the regulatory impact.
  • T. UK: sustained revenue growth (+1.1% organic; €1,602m), despite the strong roaming impact in the quarter, which was reflected in a €412m OIBDA (-4.7% organic).
  • T. Hispanoamérica maintained solid growth in revenues (+16.1% organic; €2,981m) and OIBDA (+9.3%; €883m) due to increased penetration of value accesses and efficiency measures.
  • The company reiterated its guidance and the dividend announced for 2017.

Find-out more:

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