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Telefónica Q3 revenues up 11.2%

November 4, 2022

Telefónica has presented solid results marked by accelerating revenue growth, which increased in the third quarter to €10.3 billion, 11.2 per cent up YoY.

The Spanish multinational telco said that in “a context of global macroeconomic uncertainty [it] has continued to grow, strengthening its position in its main markets and exploiting new opportunities”, a performance that has enabled the Group to achieve a net income of €1.48 million in the first nine months of 2022.

“Telefónica once again demonstrated the robustness of its business, confirming its financial targets for the full year. In this period, the company has doubled its cash generation compared to the previous year, despite the complex environment of global uncertainty and the deep energy and inflation crisis. Telefónica continues to execute its strategic plan and the strength of the balance sheet allows the company to face the demands of this new digital era while maintaining its firm commitment to create a better, more connected and more equal world,” said José María Álvarez-Pallete, Chairman and CEO of Telefónica.

The strong growth in revenues in the third quarter was driven by double digit increases in Brazil (+29 per cent) and Hispam (+18.2 per cent), as well as in Spain (+0.2 per cent) and Germany (+6 per cent), a pattern that is also reflected in the first nine months.

Operating income before depreciation and amortisation (OIBDA) amounted to €3.24 billion in the quarter, down 13 per cent, as a result of the capital gains registered in the same period of 2021, which exceeded €700 million and came from operations such as the closing of FiBrasil deal and the sales of Telefónica Deutschland’s towers to American Tower, Telefónica Costa Rica to Liberty Latin America and 40 per cent of InfraCo in Chile to KKR. Stripping out this effect, underlying OIBDA grew 8.5 per cent to €3,293 million.

In its core markets, Spain strengthened its third quarter results with miMovistar, the flexible offer launched in the second quarter of the year. The Movistar Plus pay-TV offer saw loss of 36,200 subscribers in Q3 to 3,553,100. Meanwhile Brazil, focused on the integration of Oi’s mobile assets, reported operating results that Telefónica said “demonstrate its leadership in the market”.

Telefónica added that Germany showed solid commercial traction between July and September, and Virgin Media O2 (VMO2) continued to capture synergies and strengthen its content proposition.

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