TIDMTDE
RNS Number : 6543Y
Telefonica SA
10 May 2019
FINANCIAL HIGHLIGHTS
-- Improving trends in revenue growth, net income and earnings per share.
(R) Solid growth in value accesses: LTE (+18% y-o-y; +4.1m
quarterly net additions), mobile contract (+6%; +1.1m), smartphones
(+3%), FTTx/Cable (+18%; +0.4m), Pay TV (+3%).
(R) Organic revenue growth acceleration (+3.8% y-o-y; +0.8 p.p.
vs. Q4 18), with improved service revenues (+2.6% y-o-y, +1.3 p.p.
vs. Q4 18). Revenues in the quarter totalled EUR11,979m (-1.7%
reported y-o-y).
(R) OIBDA (EUR4,264m in January-March) up 10.3% y-o-y in the
quarter (+1.0% in organic terms) impacted by special factors
amounting to +EUR534m:
(R) i) adoption of reporting standard IFRS 16 (+EUR414m), ii)
capital gains from the assignment of future rights linked to a
portfolio of claims in Spain (+EUR103m), iii) net capital gains on
sale of companies (+EUR86m, mainly Antares), iv) restructuring
costs (-EUR47m) and v) hyperinflation adjustment in Argentina
(-EUR22m).
(R) Net income reached EUR926m in the quarter, +10.6% y-o-y (EUR0.16 per share; +33.8%).
-- Increasing relevance with our customers; higher satisfaction and better quality.
(R) 51.8m premises passed with proprietary FTTx/cable network
(+13% y-o-y); LTE coverage of 78% (+5 p.p.).
(R) E2E Digital Transformation Programme: 66% of processes
digitalised and real-time managed (+4 p.p. y-o-y).
-- Significant cash flow generation improvement, accelerating debt reduction.
(R) Free cash flow (EUR1,408m in January-March 2019) multiplied by 2.6x vs. January-March 2018.
(R) Net debt (EUR40,381m at March; -5.7% y-o-y) decreased for
the 8(th) consecutive the quarter (-EUR693m) to EUR38.7bn once
including post-closing events of c.a. EUR1.7bn.
-- The Company reiterates its guidance and dividend announced for 2019.
-- T. España; differentiated value offering allowed for
accelerating y-o-y service revenue growth (+0.8% organic; +0.3 p.p.
vs. Q4 18) and a sequential improvement in OIBDA (+3.0 p.p.), with
an efficient cost management.
-- T. Brasil; growth in value customers (mobile contract and
FTTx), confirmation of the improved y-o-y revenue growth trend
(+1.7%; +1.2 p.p. sequentially) and OIBDA margin expansion for the
9th straight quarter (+0.5 p.p.).
-- T. Deutschland; strong net quarterly additions in mobile
contract (+306k, x1.9 y-o-y), sustained growth in revenues (+0.7%
in organic terms) and sequential OIBDA improvement (+3.8 p.p.).
-- T. UK; positive performance in the quarter of revenues (+5.3%
y-o-y in organic terms), OIBDA (+3.4%) and OpCF (+5.8%) and a
market leading contract churn.
-- T. Hispam Sur; elevated growth rates in revenues and OIBDA
(+15.2% and +7.0% y-o-y in organic terms respectively),
highlighting improved trends in Chile and Peru.
-- T. Hispam Norte; back to revenue growth (+1.2% y-o-y; +3.6
p.p. sequentially), despite competitive intensity across the
region, highlighting Colombia's positive performance (commercial
and financial).
Comments of José María Álvarez-Pallete, Chairman and Chief
Executive Officer:
"We have started the year by extending our leadership in fibre
and 4G deployment, testing new 5G capabilities and making progress
in the UNICA virtualisation programme, allowing us to continue
gaining customer relevance through better experience and higher
average lifetime.
The first quarter results showed a significant improvement in
revenue growth trends and double-digit growth in net income and
earnings per share. Strong cash generation, which was three times
higher than the figure reported in the first quarter of the
previous year, allowed for an acceleration in debt reduction, for
the 8th consecutive quarter, further strengthening our balance
sheet.
As a result, we reiterate the dividend and guidance announced
for 2019".
TELEFÓNICA
SELECTED FINANCIAL DATA
Unaudited figures (Euros in millions)
January - March % Chg
2019 Reported Organic
Revenues 11,979 (1.7) 3.8
Telefónica España 3,108 0.3 0.3
Telefónica Deutschland 1,779 0.7 0.7
Telefónica UK 1,691 6.6 5.3
Telefónica Brasil 2,563 (5.2) 1.7
Telefónica Hispam Sur (1) 1,612 (12.1) 15.2
Telefónica Hispam Norte (2)(3) 971 (0.0) 1.2
Other companies & eliminations 256 11.4 9.2
Telxius 219 21.5 18.7
-------------------------------------------------------------
OIBDA 4,264 10.3 1.0
Telefónica España 1,350 10.3 (1.4)
Telefónica Deutschland 522 29.5 (0.2)
Telefónica UK 504 17.3 3.4
Telefónica Brasil 1,050 6.9 3.1
Telefónica Hispam Sur (1) 441 (14.6) 7.0
Telefónica Hispam Norte (2)(3) 263 1.9 (14.9)
Other companies & eliminations 134 n.m. 32.0
Telxius 129 50.1 18.2
-------------------------------------------------------------
OIBDA margin 35.6% 3.9 p.p. (0.9 p.p.)
Telefónica España 43.4% 3.9 p.p. (0.7 p.p.)
Telefónica Deutschland 29.4% 6.5 p.p. (0.2 p.p.)
Telefónica UK 29.8% 2.7 p.p. (0.5 p.p.)
Telefónica Brasil 40.9% 4.6 p.p. 0.5 p.p.
Telefónica Hispam Sur (1) 27.4% (0.8 p.p.) (2.0 p.p.)
Telefónica Hispam Norte (2)(3) 27.1% 0.5 p.p. (4.3 p.p.)
Other companies & eliminations 52.3% 30.3 p.p. 4.4 p.p.
Telxius 58.8% 11.2 p.p. (0.2 p.p.)
Operating Income (OI) 1,650 0.7 (0.1)
Net income attributable to equity holders of the Parent 926 10.6
Basic and diluted earnings per share (euros) 0.16 33.8
CapEx 1,554 4.3 11.2
Telefónica España 377 9.0 9.2
Telefónica Deutschland 252 28.3 28.3
Telefónica UK 185 1.4 0.2
Telefónica Brasil 396 2.1 9.6
Telefónica Hispam Sur (1) 243 (3.4) 33.8
Telefónica Hispam Norte (2) 78 46.8 16.6
Other companies & eliminations 22 (69.3) (69.2)
Telxius 9 (83.6) (83.6)
-------------------------------------------------------------
Spectrum 18 161.5 141.7
Telefónica España - - -
Telefónica Deutschland - - -
Telefónica UK - - -
Telefónica Brasil - - -
Telefónica Hispam Sur (1) - - -
Telefónica Hispam Norte (2) 18 n.m. n.m.
OpCF (OIBDA-CapEx) 2,710 14.2 (5.3)
Telefónica España 973 10.8 (5.6)
Telefónica Deutschland 270 30.7 (25.6)
Telefónica UK 319 29.0 5.8
Telefónica Brasil 654 10.0 (1.2)
Telefónica Hispam Sur (1) 199 (25.2) (17.1)
Telefónica Hispam Norte (2) 185 (9.7) (22.8)
Other companies & eliminations 112 c.s. c.s.
Telxius 120 n.m. n.m.
------------------------------------------------------------- ----------------- ----------- -----------
- Reconciliation included in the excel spreadsheets.
Notes:
- January-March 2019 results reported under accounting standards IFRS 16, effective since
January 2019. January-March 2018 results reported under prior accounting IAS 17.
- OIBDA and OI are presented before brand fees and management fees.
(1) Telefónica Hispam Sur includes Argentina, Chile, Peru and Uruguay
(2) Telefónica Hispam Norte includes Colombia, Mexico, Venezuela, Central America and
Ecuador.
- Group consolidated results deconsolidate Telefónica Guatemala's results since 1 January
2019 and Antares' results since 1 February 2019.
Organic criteria 2019: Assumes average constant foreign exchange rates of 2018, except for
Venezuela (2018 and 2019 results converted at the closing synthetic exchange rate for each
period) and excludes the hyperinflation adjustment in Argentina. Considers constant perimeter
of consolidation. Excludes the effects of the accounting change to IFRS 16, write-offs, capital
gains/losses from the sale of companies, restructuring costs and material non-recurring impacts.
CapEx excludes spectrum investments.
DISCLAIMER
This document may contain forward-looking statements and
information (hereinafter, the "Statements") relating to the
Telefónica Group (hereinafter, the "Company" or "Telefónica") or
otherwise. These Statements may include financial forecasts and
estimates based on assumptions or statements regarding plans,
objectives and expectations that make reference to different
matters, such as the customer base and its evolution, growth of the
different business lines and of the global business, market share,
possible acquisitions, divestitures or other transactions,
Company's results and other aspects related to the activity and
situation of the Company.
The Statements can be identified, in certain cases, through the
use of words such as "forecast", "expectation", "anticipation",
"aspiration", "purpose", "belief" or similar expressions or
variations of such expressions. These Statements reflect the
current views of Telefónica with respect to future events, do not
represent, by their own nature, any guarantee of future fulfilment,
and are subject to risks and uncertainties that could cause the
final developments and results to materially differ from those
expressed or implied by such Statements. These risks and
uncertainties include those identified in the documents containing
more comprehensive information filed by Telefónica before the
different supervisory authorities of the securities markets in
which its shares are listed and, in particular, the Spanish
National Securities Market Commission.
Except as required by applicable law, Telefónica does not assume
any obligation to publicly update the Statements to adapt them to
events or circumstances taking place after the date hereof,
including changes in the Company's business, in its business
development strategy or any other unexpected circumstance.
This document may contain summarized, non-audited or non-GAAP
financial information. The information contained herein should
therefore be considered as a whole and in conjunction with all the
public information regarding the Company available, including, if
any, other documents released by the Company that may contain more
detailed information. Information related to Alternative
Performance Measures (APM) used in the present document are
included in the Appendix "Alternative performance measures", page
45 of the 2019 first quarter Interim Management Statement submitted
to the Spanish National Securities Market Commission (CNMV).
Moreover, recipients of this document are invited to read our
consolidated financial statements and consolidated management
report for the year 2018 submitted to the CNMV, in Note 2, page 17,
of the pdf filed.
Neither this document nor any of its contents constitute an
offer to purchase, sale or exchange any security, a solicitation of
any offer to purchase, sale or exchange any security, or a
recommendation or advice regarding any security.
For further information please refer to the information on 2019
first quarter financial results filed by the Company and also
available on the Company's website: www.telefonica.com
This information is provided by RNS, the news service of the
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END
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May 10, 2019 03:23 ET (07:23 GMT)
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