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.
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.