Telefonica has revealed its main achievements and financial performance for the second quarter of 2024.
Telefonica’s revenue rose 1.2 percent to €10.255 billion in the second-quarter of 2024. Telefonica’s revenue grew 1.1 percent to €20.395 billion in the first-half. Service revenues rose 2.2 percent.
Telefonica said 61 percent of revenues came from the residential market (B2C), 22 percent from the business segment (B2B) and the remaining 18 percent from the wholesale business, partners and other revenues between April and June.
Telefonica’s EBITDA rose 1.8 percent between April and June to €3,219 million and rose 1.9 percent to €6,424 million in the first half of the year. The company recorded a net income of €979 million (up 28.9 percent).
GUIDANCE
Telefonica confirms targets for 2024: revenue growth of around 1 percent and EBITDA and operating cash flow growth between 1 percent and 2 percent; Capex over revenue ratio of up to 13 percent; and a FCF increase of more than 10 percent.
“Telefonica is a more profitable and sustainable company, meeting the pillars of its GPS strategic plan, confirming all its financial targets for 2024,” said Telefonica Chairman Jose Maria Alvarez-Pallete.
CAPEX
Telefonica forecasts a Capex-to-revenue ratio of up to 13 percent for 2024.
Telefonica’s Capex reached €2.299 billion in the first half (down 3.9 percent), after falling 8.9 percent to €1.243 billion in the second quarter. Capex represents investment-to-revenue ratio of 11.3 percent. Telefonica has made investment in network to retain leadership of its infrastructures through controlled investment.
Investment in virtualisation in Telefonica’s infrastructures has enabled to accelerate the development of fibre and 5G technology, as well as the switch-off of retail copper service in Spain.
Telefonica maintained its position as the leader in fibre, with 177 million ultrafast broadband premises passed, up 4 percent, of which a total of 78.9 million were FTTH (+13 percent). In the second quarter, the number of FTTH premises increased by 2.3 million, 51 percent was deployed by Telefonica’s fibre vehicles.
Telefonica’s 5G network has 89 percent population coverage in Spain, 96 percent in Germany, 50 percent in Brazil and 65 percent in the UK.
Telefonica has launched 5G Stand Alone in four major markets to enhance the customer experience.
Telefonica has also upgraded network cores in these markets to handle all types of traffic (4G, 5G NSA and 5G SA). Telefonica said the network slicing services provided by the 5G SA network are generating revenues.
CUSTOMERS
Telefonica has 392 million customers (up 2.2 percent) as it achieved growth in fibre accesses (+12.1 percent) and mobile contract customers (+3.3 percent).
Telefonica has also achieved higher customer satisfaction, with an NPS (Net Promoter Score) 2 percentage points higher than in the first quarter.
Telefonica has signed an agreement with DIGI for the mobile network in Spain.
Virgin Mobile O2 announced the extension of its network sharing agreement with Vodafone in the UK.
Telefonica Tech has generated revenue of €984 million (up 11.1 percent).
Telefonica Infra recorded a total of 23 million premises passed in June with existing fibre vehicles and more than 100,000 km of international connectivity via submarine cable. Telxius, the cable operator, has achieved an EBITDA margin of 49.4 percent in the first half.
Baburajan Kizhakedath
