11 May 2017
José María Álvarez-Pallete, Executive Chairman of Telefónica:
“First quarter results reflected a further step forward in our business model, which is focused on the pursuit of sustainable growth. The differential quality of our asset portfolio enables us to offer differential services, which translated into improvements in our results; in particular: i) the growth in main financial metrics, including the positive impact of foreign exchange rates in the quarter; ii) the savings obtained from synergy capture and process simplification; and iii) the strengthening of our balance sheet and the strong free cash flow growth, 9x higher vs. January-March 2016. In addition, we have announced the launch of AURA, a new, more innate and simple customer relationship model, a pioneer in the area of cognitive intelligence. At the same time, the results are aligned with our expectations and allow us to reiterate the guidance set for 2017”.
Telefónica presented today its results for the first quarter of the year, which show growth in main financial and operational metrics and a positive impact of exchange rates. With regard to revenues for the quarter, the figure stands at 13,132 million euros, a 5% increase year on year.
In organic terms, revenue has grown by 1.5%, driven by service revenues (+1.7%). Mobile data revenues maintained double-digit y-o-y growth (+13.5% in organic terms).
OIBDA amounted to 4,021 million euros between January and March 2017, which was 4.8% y-o-y (+1,3% in organic terms). This positive result reflects a positive revenue evolution, cost containment efforts, and synergy capture and efficiencies from the transformation process. The OIBDA margin stands at 30.6%, remaining stable versus previous year.