Telefónica Accelerates its Growth and Reaches a Net Income of 2,849 Million Euros Until September
The Company shows solid results in the period from July to September, totally in line with the full-year targets and reaffirms all its operational targets set for 2014, as well as the dividend promised in its shareholder remuneration policy
November 12 2014
In the report on the presentation of results, the Executive Chairman of Telefónica, César Alierta, has
emphasised the important advances in the third quarter in Telefónica's transformation process: "The
close of the consolidation activity in Germany and the acquisition of GVT in Brazil bring structural changes
in the positioning of the company in two of its principle markets and reinforces the capacity for future
Fostered by the performance of Telefónica Hispanoamérica and mobile data, Telefónica's revenue increased its organic growth both in the third quarter (13,021 million Euro, +2.8% year-on-year), and in the first 9 months (37,978 million Euro +1.9%), with an improvement in trends in nearly all countries between July and September.
The performance of the revenue and the efficiencies derived from the transformation process of the company boosted the OIBDA (4,269 million Euro in 3Q; 12,325 million Euro to September), with a return to growth in organic terms (+0.8% in the quarter, +0.2% year-on-year in the first 9 months of the year).
In accounted terms, the year-on-year growth of both items (-10.9% and -12.6%, respectively) is affected by the types of change, that deduct 9.3 percentage points from the year-on-year performance, as well as changes in the consolidation perimeter derived from the sale of Telefónica Czech Republic and Telefónica Ireland, that reduce the year-on-year revenue by 3.4 percentage points and the OIBDA by 4.0 percentage points.
As a strategic priority for the company, the financial flexibility of Telefónica is increased, which translates into a free cash flow of 2,839 million Euro at the end of September. Including post-closing events net debt stood at 44,879 million euros
Between January and September, investment in Telefónica grew by 26.2% in organic terms, reaching 5,738 million Euro, including spectrum acquisition. Nearly three quarters of CapEx has been allocated to modernisation and differentiation of networks, key areas for sustainable growth. Therefore, for example, in the last twelve months the reach of the fibre to the home network has doubled and, in the same period, the number of LTE base stations has multiplied by 2.5.