TELEFÓNICA POSTS NET PROFIT OF 776 MILLION EUROS IN THE FIRST QUARTER OF 2016 AND ALL BUSINESS UNITS SHOW PROFITABLE GROWTH
29 April 2016
In the results report published today, José María Álvarez-Pallete, Executive Chairman of Telefónica, emphasized that "first quarter results reflect a general strengthening of the business”. He also underlined “the significance of the return to OIBDA growth in Spain during the quarter” as well as the fact that “for the first time in 8 years both OIBDA and revenues are growing simultaneously”. Finally, Álvarez-Pallete said that first quarter results “are in line with our expectations for the year-end and enable us to reiterate our guidance and the dividend of €0.75/share for 2016”.
The main financial items improved their performance until March and, in organic terms, revenue rose by 3.4%, while OIBDA increased by 5.5% while operating cash flow grew 3.6%.
Mobile data (+19.9% in organic terms) is driving the growth of the consolidated revenue, which totalled 10,784 million euros in the quarter. Fixed broadband connectivity and services over connectivity grew at rates above 21% and 14%, respectively, in organic terms.
OIBDA grew year-on-year in all business units in the quarter and totalled 3,376 million euros because of the materialization of synergies and greater cost efficiency. Thus, profitability expanded and the OIBDA margin totalled 31.3% (+0.6 percentage points, in organic terms).
The variations in reported terms were particularly affected by the exchange rates, which take 16 percentage points off the evolution of income and 14.8 percentage points off the OIBDA, although this impact is neutral in terms of cash generation.
Telefónica invested 1,503 million euros in the first quarter of the year (+7.8% in organic terms) to guarantee a set of unique distinctive platforms for its customers. The Company has over 32 million premises passed with fibre optic and LTE coverage reaches 83% of the population in Spain and 76% in Germany.