Telefonica Profits Jump As Debt Falls

Published on: 7th Nov 2012

­Telefonica has reported that revenues for the nine-months to the end of September were largely flat compared to a year ago at EUR46.52 billion (US$59.5 billion), while net profits rose by 26.4% to EUR3.46 billion (US$4.43 billion). The company does not break down its profits by individual quarter.

The company particularly highlighted the removal of handset subsidies for new customers acquisition in Spain from March this year as leading to significant savings in commercial expenses, as well as the gradual reduction of subsidies in the UK, the focus on quality as a key lever to reduce churn, and network-sharing agreements reached with other operators in the UK and Mexico.

Meanwhile, the third quarter also featured a considerable reduction in net financial debt, reflecting the Company's strategy of increasing its financial flexibility and improving its liquidity position. 

By region, Latin America's revenues continue to show strong year-on-year
growth (+5.9%) and now account for 49% of consolidated revenues (+2.9 percentage points year-on-year), for the first time exceeding revenues from the European operations (48% of the total). Spain's contribution decreased to 24% of consolidated revenues.

The total customer based increased by 5% year-on-year to 314 million by the end of September 2012, driven by the increase in mobile subscribers, fixed and mobile broadband, and pay TV customers. Noteworthy was the 8% year-on-year increase in accesses at Telefónica Latinoamérica (67% of the total).

At the end of September, the company's debt had fallen to EUR56 billion (US$71.7 billion).

 

Tags: [telefonica]  [Spain]