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Telefonica Spain sales down 9.1% YoY, pay-TV subs up 91%

2014-07-31 08:29:00| Telecompaper Headlines

(Telecompaper) Telefonica's Spanish unit (Telefonica Espana) reported sales of EUR 3.00 billion in the second quarter of 2014, slightly up on the previous quarter but down 9.1 percent from a year earlier. Telefonica said the results reflected a stabilisation of revenue and a change in the company's business dynamic in Spain, especially in the light of the success of the revamped convergent offer it launched in April. The commercial performance of the new Movistar Fusion deals could be seen in the pay-TV and fibre sectors, with the company adding nearly 350,000 pay-TV subscribers as well as 160,000 fibre customers in the second quarter alone. The operator underlined that its customers' increasing preference for high-quality services should gradually manifest itself in year-on-year growth rates. The company's operating income before depreciation and amortization (OIBDA) for the April-June period fell 16.5 percent in organic terms from a year earlier to EUR 1.34 billion, impacted by the increased commercial effort, while OIBDA margin was down 4.0 percent to 44.7 percent. CapEx for the quarter soared to EUR 436 million, an increase of 40.5 percent compared to Q2 2013, reflecting the operator's accelerated rollout of its fibre and 4G networks.

Tags: up sales spain subs

Telefonica posts Q2 organic sales up 1.3%, maintains outlook

2014-07-31 08:26:00| Telecompaper Headlines

(Telecompaper) Telefonica reported second-quarter revenues down 11.8 percent year-on-year to EUR 12.73 billion, hurt by continued weakness in its home market, divestments, exchange rates and regulatory effects. OIBDA fell 15.0 percent to EUR 4.13 billion, giving a margin of 32.4 percent. Excluding the sale of its Czech and Irish operations, Telefonica's organic revenues rose 1.3 percent, and OIBDA was down 0.7 percent. While revenues in Spain were still down 9.1 percent, the UK grew by 0.1 percent on an organic basis, Brazil was up 1.0 percent and the rest of Latin America increased revenue 11.3 percent. Net profit increased 4.9 percent year-on-year to EUR 1.21 billion. Telefonica said it was starting to see the benefits of increased network investment, with accelerated growth in mobile data and steady expansion of the TV and fibre customer bases. Capex was up 27.2 percent on an organic basis in the first half of the year to EUR 3.52 billion, while operating cash flow fell 13.5 percent to EUR 4.53 billion. Ne debt was up by EUR 10 billion in Q2 due to the dividend payment, reaching a total EUR 43.79 billion at the end of June. Including the proceeds from selling O2 Ireland, which closed in July, net debt was at 2.43 times EBITDA. Telefonica said the first-half results support its full-year outlook for stable organic revenues, a drop in the OIBDA margin of 0.9 percentage points year-on-year and capex at 13.7 percent of revenue.

Tags: sales posts organic outlook

Telefonica confirms takeover talks after Iusacell report

2014-07-30 14:45:00| Telecompaper Headlines

(Telecompaper) Telefonica has confirmed ongoing negotiations with an unnamed company in Mexico after an earlier report said the Spanish group was finalising the takeover of mobile operator Iusacell. In a statement to Spain's market regulator CNMV, Telefonica said "negotiations are open, although no agreement has been reached." Spanish website El Confidencial had earlier reported that Telefonica was close to acquiring its rival Iusacell for between EUR 2.5 to EUR 3 billion. Iusacell, Mexico's third largest mobile operator, was valued at USD 3.2 billion when the broadcaster Televisa acquired a 50 percent stake in the company in 2012. Mexican billionaire Ricardo Salinas owns the remaining 50 percent of the operator.

Tags: report talks confirms takeover