Financial data

  • Profitable and sustainable growth..
    • Differentiation strengthens our competitive position, enabling us to achieve further growth in value: LTE (+20% y-o-y; quarterly net adds +5.8m), mobile contract (+7%; +2.2m), smartphones (+6%; +0.9m), FTTx/Cable (+21%; +0.4m), Pay TV (+5%; +30k).
    • Revenues in the fourth quarter (€12,917m; -1.9% y-o-y), accelerated their organic growth to +3.0% y-o-y (+0.7 p.p. vs. prior quarter), on improved service revenue performance (+1.3% y-o-y, +0.1 p.p. vs. prior quarter) and a strong progress in handset sales (+18.5%). Revenues in 2018 (€48,693m; -6.4% y-o-y) increased by 2.4% in organic terms.
    • OIBDA (€3,537m in October-December; €15,571m in January-December) was down by 9.6% y-o-y in the quarter (+2.4% y-o-y organic) impacted by special factors amounting to -€472m, among others:
      • Restructuring costs (-€363m), total goodwill write-off in Mexico (-€242m), hyperinflation adjustment in Argentina (+€80m), adoption of IFRS 15 (+€40m) and tower sales (+€19m).
    • Net income totalled €3,331m in 2018 and increased by 6.4% y-o-y (€0.57 per share; +2.2%).
      • In October-December, net income reached €610m, down 11.9% y-o-y (€0.11 per share; -11.9%).


  • Efficient use of resources, radical transformation of networks and improved quality and customer experience.
    • 50.5m premises passed with proprietary FTTx/Cable (+14% y-o-y) and 76% LTE coverage (+4 p.p.).
    • Over €300m digitalisation savings in 2018, 65% of processes already digitalised and real-time managed (+6 p.p. y-o-y).
  • Progress in deleverage.
    • Free cash flow spectrum (€5,578m in January-December 2018) grew 5.3% y-o-y.
    • Net debt (€41,785m at December; -5.5% y-o-y) decreased for the 7th consecutive quarter (-€851m).
    • Net debt including post-closing events (divestments of T. Central America and Antares) would be further reduced by €1.4bn.
  • T. España solid commercial activity and service revenue growth acceleration in the quarter (+0.6% y-o-y organic; +0.6 p.p. sequentially) driven by consumer and business segments; strong OpCF growth (+10.9%).
  • T. Brasil revenue growth in the quarter (+0.5% y-o-y organic; +1.5 p.p. vs. prior quarter), solid OIBDA increase (+5.4%) and OIBDA margin expansion for the 8th straight quarter (+1.8 p.p.), to the record level of 39.1% organic.
  • T. Deutschland mobile contract net adds of +279k in the quarter (+19.8% q-o-q), back to growth in revenues (+2.6% y-o-y organic) and network integration completed, with significant quality improvements.
  • T. UK good mobile contract performance (+114K net adds ex M2M; +63% y-o-y), solid growth trends in the quarter in revenues (+5.3% y-o-y organic), OIBDA (+23.8%) and OpCF (+32.2%), and a market-leading contract churn.
  • T. Hispam Sur consolidated revenue and OIBDA growth in the quarter (+11.1% and +7.4% y-o-y organic, respectively) and significantly accelerated OpCF growth (+25.5%), recording positive contract net adds for the 5th consecutive quarter, with growth in accesses in all countries.
  • T. Hispam Norte quarterly results significantly impacted by the regulation and competitive intensity in Mexico, highlighting the positive OpCF evolution (+32.7%).
  • Telefónica announces its guidance 1 for 2019:
    • Revenues: growth of around 2%
    • OIBDA: growth of around 2%
    • CapEx/sales (excluding spectrum): around 15%
  • Telefónica confirms shareholder remuneration for 2018 and announces the remuneration policy for 2019:
    • The second part of the 2018 dividend (€0.20 per share in cash) will be paid in June 2019.
    • Dividend for 2019 of €0.40 per share in cash, to be paid in December 2019 (€0.20 per share) and in June 2020 (€0.20 per share)2

1 Guidance 2019:

Guidance for 2019:

  • Assumes constant exchange rates of 2018 (average in 2018) except for Venezuela (2018 and 2019 results converted at the closing synthetic exchange rate for each period), excludes the hyperinflation adjustment in Argentina and considers constant perimeter of consolidation.
  • Does not include:
    • Write-offs, capital gains/losses from the sale of companies, material non-recurring impacts and restructuring costs.
    • The impact of the adoption of IFRS 16.
    • CapEx excludes investments in spectrum.

2018 adjusted bases: Revenues (€48,817m) and OIBDA (€15,879m)

  • Considering:
    • Average exchange rates in 2018 with the exception of Venezuela (synthetic exchange rate upon the close of each period).
  • Does not include:
    • Write-offs, capital gains/losses from the sale of companies, material non-recurring impacts and restructuring costs.
    • The hyperinflation adjustment in Argentina.
    • The Results of the operations of Telefónica in Guatemala, Catsa and Antares.

2 The adoption of the corresponding corporate resolutions will be proposed in due course, announcing the specific payment dates


Find-out more:

  • Telefónica S.A. January-December 2018 results report
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