Telefonica 9-mo 06 results

Telefonica announced very good results for 9-mo operations. It reported the best combination of growth and profitability in the sector. Net profit amounted to €5.2bn, up 59%; revenues grew 43% to €38.7bn, of which €13.5bn in Moviles, up 12%; OIBDA increased 36% to €14.7bn; operating income reached €7.5bn, up 24.5%. Free cash flow amounted to €9.6bn, up 26% and Capex reached €5.1bn, up 60%. All business lines contributed to the growth. Telefonica Moviles was the main contributor to OIBDA with a 32% share, followed by Telefonica de Espana with almost 26%, then Telefonica Latinoamerica with amlost 22%, and Telefonica O2 Europe with 19%. Spain generated 46% of OIBDA, while Latam generated 34% and Europe (-Spain) contributed 20%. Telefonica net debt stood at €52.2bn.

Telefonica is managing a total of 196m accesses (+33%), of which 138.4m are cellular (+48%), 7.3m are broadband (+45%) and almost 1m are pay-TV (+62%). Among cellular accesses, 21m are in Spain, 79m in Latam, 34.5m in Europe (-Sapin) and 4.2m in Morocco.

As a consequence of the current performance, Telefonica increased its guidance for the year with +37% growth in revenues, OIBDA growth in the top range of +26%/+29%, capex around €7.2bn.