Telefónica’s revenues in the first nine months of 2013 totalled 42,626 million euros, up 0.4% year-on-year in organic terms (-8.4% in reported terms), and indicating a positive change in trend compared with the first half (-0.5% year-on-year) triggered by a significant organic revenue growth acceleration in the third quarter to 2.1% (+0.5% in the second quarter and -1.6% in the first quarter). For the first nine months of 2013, Telefónica earned a net profit of 3,145 million euros and achieved its annual revenue and debt targets a quarter in advance.
Telefónica Latinoamérica further accelerated year-on-year growth (+10.9% year-on-year in the third quarter; +0.6 percentage points compared with the second quarter), whilst Telefónica Europe continued its gradual improvement (+1.7 percentage points compared with the year-on-year change in the second quarter to -7.1% year-on-year).
Telefónica Digital revenue grew 17.9% year-on-year in the third quarter in organic terms and including both digital services, already comprised in Telefónica Latinoamérica and Telefónica Europe regions, and subsidiaries and other businesses of Telefonica Digital new businesses.
By region, Telefónica Latinoamérica remained the Group’s growth driver, accounting for 51% of total revenues in the first nine months (+2.6 percentage points year-on-year)
Some operational highlights as of 30-Sept-2013:
- Telefónica managed 320.3 million accesses, with year-on-year growth accelerating to 2%, driven by mobile and pay TV accesses. By region, Telefónica Latinoamérica (68% of the total) maintained a strong commercial momentum, posting growth acceleration for the third quarter in a row to 4% year-on-year.
- Mobile accesses stood at 252.2 million, up 3%, driven by growth of the contract segment (+9% year-on-year), which now accounts for 35% of total mobile accesses. It is important to note that Latin America registered record-high net contract additions in the quarter (+79% year-on-year), further strengthening the company’s leadership in the region in this segment.
- Mobile broadband accesses continued posting solid growth (+41% year-on-year), reaching 67.4 million in September 2013, and now accounting for 27% of mobile accesses. It should be highlighted the on-going smartphone adoption in the year, as net additions stood at 15.1 million in the first nine months (+50% year-on-year).
- Retail broadband accesses (18.4 million at the end of September) maintained a year-on-year growth rate of 2%.
- Mobile data revenues accelerated to 10.2% year-on-year in the third quarter in organic terms (+9.8% in January-September) and now account for 63% of total data revenues and 37% of mobile service revenues.
- Regarding LTE rollouts, Telefónica said network sharing agreements are speeding up deployments: in Brazil, agreements cover 2,300 sites in 64 cities; in UK, agreements cover 1,300 sites in 11 cities; in Germany, agreements cover > 1,000 sites in 10 metro areas.