Telefónica posted 5.4 percent growth in revenue to 46.67 billion euros during
January-September 2011.
The growth was mainly to the higher growth in revenues from mobile data
services. Data revenue grew 20 percent. Business in Latin America, where
reported revenues climbed 18 percent, also contributed to the growth.
Net income for the first nine months of 2011 was 2.73 billion euros, showing a
y-oy decrease of 10.6 percent.
The company achieved 300 million accesses in first nine months of 2011, an
increase of 6 period compared to the same period the previous year on the back
of a successful strategy to capture customers in the contract and fixed and
wireless broadband segments.
“30 percent of our mobile service revenues now come from data services. Sound
results achieved in Brazil, the stabilisation of trends in Spain, and the
croup’s capacity to generate high levels of operating cash flow despite the
increase in commercial activity and higher investment also important
achievement,” said César Alierta, chairman, Telefónica.
By region, Telefónica Latinoamérica and Telefónica Europe, with year-on-year
growth of 9 percent and 5 percent respectively, were the major contributors to
Telefónica’s customer base growth.
The company’s focus on capturing high-value customers was reflected in the
contract segment contribution to total net adds, which accounted for close to
50 percent in the first nine months of 2011, and rose above 100 percent for
Telefónica España, and stood at 95 percent for Telefónica Europe.
One third of Telefónica’s 231.9 million mobile accesses correspond to contract
customers, a rise of 12 percent and accounting for 50 percent of total net adds
to September.
15 percent of the group’s mobile accesses are mobile broadband users.
Telefónica maintains strong free cash flow generation capacity growing at 11.6
percent compared to the same period last year.
The Company reduced net financial debt by around 1 billion euros during the
last quarter, with an effective cost of debt of 4.85 percent to September,
lower than in the same period last year, despite the difficult environment.
The Telefónica Group invested 6.6 billion euros in the first nine months of
2011.
HIGHLIGHTS OF TELEFONICA FINANCIAL PERFORMANCE
Telefónica reported 6 percent growth in customer base to 299.7 million at the
end of September 2011.
Telefónica’s mobile accesses reached 231.9 million by the end of September
2011, up 8 percent.
Mobile broadband accesses exceeded 34 million, with 76 percent growth.
Mobile data revenue grew at 19.6 percent.
Mobile data revenue account for 30 percent of Telefónica’s mobile service
revenues.
Non-P2P SMS data revenues represent more than 50% of total data revenues.
Retail fixed broadband accesses reached 17.8 million.
Pay TV accesses stood at 3.2 million, growin at 18 percent.
Fixed telephony was 40.4 million, down 3 percent.
Telefónica Latinoamérica account for 46 percent of total consolidated revenues.
Telefónica Europe represents 25 percent of consolidated revenues.
Telefónica España contributes some 28 percent.
CapEx stood at 6,625 million euros, showing a decrease of 8.5 percent.
By Telecomlead.com Team
editor@telecomlead.com