TIDMTDE
RNS Number : 2055E
Telefonica SA
08 May 2013
financial highlights
-- Revenues totalled14,141 million euros, down 1.6% year-on-year in organic terms:
(R) Telefónica Latinoamérica accounted for 51% of consolidated
revenues (+2.7 p.p. year-on-year), maintaining a strong organic
year-on-year growth of 6.8% and reinforcing its leadership in
high-value customers in the region, with a growing weight of
contract and smartphones.
(R) Revenues in reported terms (-8.8% year-on-year) reflected
the impact of exchange rate fluctuations (-5.5 p.p.), mainly due to
the devaluation in Venezuela, and the changes in the perimeter of
consolidation (-1.8 p.p.).
-- Stabilization of OIBDA year-on-year (-0.1% in organic terms)
for the second quarter in a row:
(R) OIBDA totalled 4,567 million euros, reflecting the solid
execution and sustainability of the Company's transformational
initiatives.
(R) Organic OIBDA margin expanded by 0.5 p.p. compared with the
first quarter of 2012, sustaining the year-on-year improvement
trend for the second consecutive quarter.
-- Sustained increase of operating cash flow (OIBDA-CapEx)
(+9.6% year-on-year in organic terms), maintaining the year-on-year
growth trend started the previous quarter.
-- CapEx (1,941 million euros), which included 695 million euros
of spectrum acquisition, was mainly devoted to growth areas (3G and
4G networks, fibre), which accounted for 82% of total
investment.
-- Basic earnings per share stood at 0.20 euros (+22.2% year-on-year).
(R) Net income totalled 902 million euros, up 20.6% year-on-year
(1,069 million euros in underlying terms,
-7.9% year-on-year).
-- Net debt stood at 51,809 million euros at the end of the
quarter and included both non-recurring (devaluation in Venezuela,
spectrum payment in the UK, sale of treasury stock), and seasonal
impacts (the recurrent negative working capital performance in the
first quarter). The leverage ratio stood at 2.44 times.
(R) Thanks to the proactive management of our asset portfolio,
post-closing events after the third quarter allowed to reduce net
debt further by 653 million euros to 51,156 million euros and the
leverage ratio to 2.41 times.
(R) Telefónica's proactive refinancing policy has enabled to
raise nearly 7,000 million euros year to date, so debt maturities
are currently covered beyond 2014.
-- First-quarter results are in line with the Company's internal
estimates, allowing to reiterate financial and operating targets
for 2013.
-- Continuous progressive stabilisation in our key markets:
(R) Brazil became Telefónica's first market by revenues in the
quarterand continued to strengthen its leadership thanks to its
differential quality in the mobile market (+17% in contract
customers and +88% in smartphones). Revenues grew 3.0% to 3,263
million euros in the first quarter and OIBDA margin stood at 32.3%
(+0.3 p.p. year-on-year in organic terms) despite the intense
commercial activity associated with high-value customers.
(R) In Spain, "Movistar Fusión" kept a strong commercial
momentum in the quarter, with 47% of gross adds incorporating new
mobile or broadband services, and reached 1.7 million clients at
the end of March. Total revenues, excluding handset sales,
maintained previous quarters' trend and fell 11.4% year-on-year,
while the margin continued to reflect the Company's deep
transformation and stood at 47.0% (+5.1 p.p. year-on-year in
organic terms).
(R) In the UK, contract accesses growth remained strong (+9%
year-on-year), underpinned by new customers' acquisition and churn
contention. Smartphone penetration stood at 47% of mobile customers
in March. Mobile service revenues improved for the second
consecutive quarter, falling 2.9% year-on-year excluding the impact
of regulation. OIBDA grew 3.1% year-on-year thanks to efficiency
gains and the OIBDA margin expanded 1.6 p.p. to 21.1%.
(R) In Germany contract customer growth stood at 7%, supported
by the sharp growth in smartphones, which accounted for 28% of the
mobile customer base (+7 p.p. year-on-year). Mobile service
revenues rose 0.5% year-on-year excluding the interconnection rates
cuts, while the OIBDA margin expanded 0.5 p.p. to 23.9% in the
quarter.
Comments from César Alierta, Executive Chairman
"In the first quarter of 2013 we continued with the
transformation process underway by the Company, significantly
advancing in different priority projects, which are reflected in
the progressive business stabilisation and the higher degree of
diversification, along with the continuous improvement of our
financial position.
Latin America contributed with over 50% of group revenues for
the second quarter in a row and Brazil became Telefónica's main
market in terms of revenue contribution for the first time,
highlighting the advance in our business' diversification. At the
same time, we further progressed in the launching of new businesses
through Telefónica Digital.
The transformation process also impacted the traditional
business, where we continued progressing in adapting the commercial
model moving away from a subsidy-based model towards a more
sustainable model based on quality and differential offers which
increase loyalty of our customer base. The implementation of this
new commercial model is complemented by the drive of
simplification, both in processes and products and services, which
delivered very positive results in the quarter.
All these factors are reflected in the steady improvement of key
financials, with stable OIBDA year-on-year in organic terms for the
second consecutive quarter while operating cash flow (OIBDA-CapEx)
posted double-digit year-on-year growth. In addition, the Company
continued to implement initiatives aimed at improving financial
flexibility, as evidenced by the proactive asset portfolio
management".
TELEFÓNICA
SELECTED FINANCIAL DATA
Unaudited figures (Euros in millions)
January - March % Chg
2013 2012 Reported Organic
Revenues 14,141 15,511 (8.8) (1.6)
Telefónica Latinoamérica 7,232 7,519 (3.8) 6.8
Telefónica Europe 6,675 7,556 (11.7) (10.5)
Other companies & eliminations 235 436 (46.2)
OIBDA 4,567 5,081 (10.1) (0.1)
Telefónica Latinoamérica 2,305 2,549 (9.6) 7.7
Telefónica Europe 2,348 2,508 (6.4) (4.9)
Other companies & eliminations (85) 25 c.s.
OIBDA margin 32.3% 32.8% (0.5 p.p.) 0.5 p.p.
Telefónica Latinoamérica 31.9% 33.9% (2.0 p.p.) 0.2 p.p.
Telefónica Europe 35.2% 33.2% 2.0 p.p. 2.1 p.p.
Operating Income (OI) 2,066 2,511 (17.7) (2.9)
Telefónica Latinoamérica 1,078 1,309 (17.7) 7.4
Telefónica Europe 1,128 1,256 (10.2) (7.9)
Other companies & eliminations (140) (54) 159.2
Net income 902 748 20.6
Basic earnings per share (euros) 0.20 0.16 22.2
CapEx 1,941 1,712 13.4 (19.5)
Telefónica Latinoamérica 626 906 (30.9) (21.1)
Telefónica Europe 1,286 742 73.3 (16.5)
Other companies & eliminations 30 64 (54.0)
OpCF (OIBDA-CapEx) 2,626 3,369 (22.0) 9.6
Telefónica Latinoamérica 1,679 1,643 2.2 23.1
Telefónica Europe 1,062 1,766 (39.8) 0.0
Other companies & eliminations (115) (39) 191.2
- Reconciliation included in the excel spreadsheets.
Notes:
- OIBDA and OI are presented before brand fees and management fees.
- OIBDA margin calculated as OIBDA over revenues.
- 2012 and 2013 reported figures include the hyperinflationary adjustments in Venezuela in
both years.
- Other companies & eliminations include the results of Atento in the first quarter of 2012.
- CapEx includes 695 million euros from the spectrum acquired in the first quarter of 2013:
671 million euros in United Kingdom and 24 million euros in Uruguay. In the first quarter
of 2012 it includes 5 million euros from the spectrum acquired in Nicaragua.
- From January 1st, 2013, Tuenti is included in the consolidation perimeter of T. España.
Before it was included within "Other companies and eliminations" of Telefónica Group.
As a consequence, the results of T. España, T. Europe and "Other companies and Eliminations"
of Telefónica Group have been restated for the fiscal year 2012. As this is an intragroup
change, Telefónica consolidated results for 2012 are not affected.
- Organic growth / 2013 guidance: Assumes constant exchange rates as of 2012 (average Fx in
2012), excludes hyperinflationary accounting in Venezuela and considers constant perimeter
of consolidation. In OIBDA and OI terms excludes write-downs, capital gains/losses from companies'
disposals, tower sales and material non-recurring impacts. CapEx excludes spectrum acquisition.
2012 adjusted bases exclude: capital gains/losses from companies' disposals (capital gains/losses
from China Unicom, Atento, Hispasat and Rumbo), impairment of T. Ireland, homogeneous perimeter
(2012 adjusted figures exclude results of Atento, Rumbo and small changes in T. Digital perimeter
and homogeneous accounting treatment of Joint Ventures) tower sales and change in contractual
commercial model for contract handsets in Chile.
DISCLAIMER
This document contains statements that constitute forward
looking statements about Telefónica Group (going forward, "the
Company" or Telefónica) including financial projections and
estimates and their underlying assumptions, statements regarding
plans, objectives and expectations which may refer, among others,
to the intent, belief or current prospects of the customer base,
estimates regarding, among others, future growth in the different
business lines and the global business, market share, financial
results and other aspects of the activity and situation relating to
the Company.
The forward-looking statements in this document can be
identified, in some instances, by the use of words such as
"expects", "anticipates", "intends", "believes", and similar
language or the negative thereof or by forward-looking nature of
discussions of strategy, plans or intentions. Such forward-looking
statements, by their nature, are not guarantees of future
performance and involve risks and uncertainties, and other
important factors that could cause actual developments or results
to differ from those expressed in our forward looking statements.
These risks and uncertainties include those discussed or identified
in fuller disclosure documents filed by Telefónica with the
relevant Securities Markets Regulators, and in particular, with the
Spanish Market Regulator.
Analysts and investors, and any other person or entity that may
need to take decisions, or prepare or release opinions about the
securities issued by the Company, are cautioned not to place undue
reliance on those forward looking statements, which speak only as
of the date of this presentation.
Except as required by applicable law, Telefónica undertakes no
obligation to release publicly the results of any revisions to
these forward looking statements which may be made to reflect
events and circumstances after the date of this presentation,
including, without limitation, changes in Telefónica's business or
acquisition strategy or to reflect the occurrence of unanticipated
events.
This document may contain summarized information or information
that has not been audited. In this sense, this information is
subject to, and must be read in conjunction with, all other
publicly available information, including if it is necessary, any
fuller disclosure document published by Telefónica.
Finally, it is stated that neither this presentation nor any of
the information contained herein constitutes an offer of purchase,
sale or exchange, nor a request for an offer of purchase, sale or
exchange of securities, or any advice or recommendation with
respect to such securities.
For further information please refer to the information on 2013
first quarter financial results filed by the Company and also
available on the Company's website: www.telefonica.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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