Telefónica in the red; pay-TV subs rise
February 22, 2024
From David Del Valle in Madrid
Spanish telco Telefónica has reported a 2023 operating a loss of €892 million as a result of a write-off of its UK business (Virgin Media O2) and the cost of its layoff plan in Spain affecting some 3,400 employees.Telefónica suffered its first annual losses since 2002, although the future trend is pssitive. The company reported total revenues of €40.6 billion, up 1.6 per cent versus 2022, with Q4 2023 revenue amounting to €10.1 billion. In terms of customers, its pay-TV unit in Spain increased the number of subscribers by 8,000 to a total of 3,426,000, being the second consecutive quarter on the rise (in Q3 2023 it gained 1,000 subscribers). It seems that the launch of Movistar Plus+, which is open to other telcos’ customers, is successully boosting subscriptions. Telefónica’s FTTH nework gained 81,000 new customers and now covers 29.3 million homes in Spain.
“Telefónica continues to execute its roadmap, not stopping against global macroeconomic uncertainty, with the necessary ambition and determination to complete the operational transformation process launched in 2016. In 2023, Telefónica has met all its financial targets and is resolutely facing the commitments set out in our GPS strategic plan to continue building a new Telefónica and lead the new digital era,” said Telefónica Chairman José María Álvarez-Pallete. “The company has returned to growth, with higher profitability and, moreover, in a more sustainable way. Revenues are up and cash flow generation remains robust, allowing us to comfortably cover the dividend of 0.30 euros per share entirely in cash. In addition, Telefónica continues to increase its social impact through the advanced connectivity provided by our state-of-the-art intelligent networks, ensuring the best service to our customers”.