“2019 was an important year for Telefónica.
We met our guidance, with all our core markets growing in organic terms.”
José María Álvarez-Pallete
Chairman & CEO - Telefónica S.A.
Telefónica increases Free Cash Flow 20.6% and reaches a debt reduction of 8% in 2019
The company starts 2020 advancing on the execution of its new strategy, focused on creating long term value
Sustainable growth: Telefónica revenues grew in organic terms for the sixth consecutive year, up +3.2% to 48,422M€ (-0.6% reported), mainly due to the sustained revenue growth in its main markets. Digital service revenues grew 17.1% in 2019.
Profitable growth: OIBDA grew +1.9% in 2019 in organic terms (€15,119M, -2.9% reported), backed by revenue growth and efficiencies from digitalisation and simplification. Telefonica captured more than €420m in digital transformation savings in 2019 and reached two-thirds of the €1bn target committed for the 2017-2020 period.
Responsible growth: Telefónica reported a stable accesses base of 344 million and improved customer satisfaction, which translated into an improvement in ARPU of 4.3% and a stable churn.
Net income, excluding extraordinary impacts of €2,432m, reached €3,574M (€1,142M in reported terms). The main impact comes from a €1,614m provision from restructuring expenses, mainly in Spain.
Free Cash Flow grew 20.6% up to €5,912M, reaching the highest level since 2013.
Net debt reduction for the 11th consecutive quarter, €37,744M, 8.1% below the level at December 2018, and close to €15,000M below June 2016. Including post-closing events, debt would be approximately €37,000M.
Results Report January-December 2019
Selected Financial Data January-December 2019
Results Presentation January-December 2019
Main business figures and indicators January-December 2019
Free cash flow
10:00 h – CALL CONFERENCE WITH ANALYSTS
The conference call, in which the most significant aspects of the results are discussed, takes place today at 10:00h (Madrid), 09:00h (London time), 04:00h (New York time)
12:30 h – PRESS CONFERENCE
Watch live the Press Conference about these 2019 Financial Results on YouTube. Live from Madrid, José María Álvarez-Pallete (Chairman & CEO), Ángel Vilá (COO) and Laura Abasolo (CFCO).