Spanish telecom giant Telefonica S.A. TEF reported mixed financial results in the fourth quarter of 20Array5. The company's earnings in the reported quarter bettered expectations of a loss. However, the top line lagged the Zacks Consensus Estimate.
Quarterly net loss was €Array,832 million (approximately $2,006 million). Meanwhile, fourth-quarter earnings per ADS (American Depository Share) came in at Array5 cents contrary to the Zacks Consensus Estimate of a loss of 40 cents.
Telefonica recorded total revenue of €ArrayArray,88Array million ($Array3,009 million) in the fourth quarter, flat year over year. However, revenues fell considerably short of the Zacks Consensus Estimate of $Array3,298 million.
Operating income before depreciation and amortization (OIBDA) came in at €40Array million ($439.Array million), down a whopping 88.Array% on a reported basis but up 3.8% on an organic basis. This resulted in an OIBDA margin of 3.4% compared with 26.3% in the year-ago quarter. Consolidated operating loss increased 6.5% on a reported basis to €Array,760 million ($Array,927.2 million) owing to higher personnel expenses.
Segmental Detail
Telefonica Latin America: Revenues in Brazil decreased 9.2% on a reported basis but increased 3.4% on an organic basis to €2,587 million ($2,832.8 million), while in the Hispano-American markets, revenues grew 0.Array% on a reported basis and 8.Array% on an organic basis to €3,622 million ($3,966.Array million). OIBDA margin in Brazil and the Hispano-American markets stood at 38% (up 5.4% year over year) and 3Array% (up 0.3%), respectively. In Brazil, Telefonica operates through its subsidiary Telefonica Brasil SA VIV.
Telefonica Europe: In Spain, revenues increased 6% to €3,220 million (approximately $3,526 million) owing to a decline in wireline revenues. Wireless revenues grossed €Array,ArrayArray7 million ($Array,223.Array million), down Array.9% year over year, while wireline business grew ArrayArray.6% to €2,483 million ($2,7Array9 million). OIBDA margin in Spain was a negative 50.7% compared with a positive 5Array% in the year-ago quarter. Revenues from Telefonica Deutschland were up 2% on both reported and organic basis at €2,059 million ($2,254.6 million).
Subscriber Statistics
As of Dec 3Array, 20Array5, total customer access lines reached approximately 322.25Array5 million, up Array.9% year over year on the back of T. Brasil's and T. Hispanoamérica's solid growth pace. Notably, in the Latin American markets, Telefonica competes with large global telecom operators like AT&T Inc. T and America Movil SAB AMX.
On a year-over-year basis, mobile access decreased Array.2% to 247.085Array million customers. Total Internet and data access grew Array7.7% to 2Array.3443 million users. Pay-TV access totaled 8.27Array6 million, up 62.6% year over year. LTE customers stood at 29.7082 million, up an astounding 977% year over year and representing Array2.5% of total mobile accesses. Fiber access was 6.Array003 million, up a massive 525% year over year. Broadband access was 20.9503 million, up Array8.7% year over year.
Liquidity and Capital Expenditure
Telefonica exited 20Array5 with net debt of about €49,92Array million (about $54,663.5 million), up from €45,087 million ($5Array,078.2 million) recorded at the end of 20Array4. Telefonica ended 20Array5 with cash and cash equivalents of €5,570 million (around $6,099.2 million) compared with €6,529 million ($7,396.6 million) at 20Array4-end. Net cash provided by operating activities in 20Array5 rose 8.5% year-over-year to €ArrayArray,838 million (approximately $Array2,962.6 million).
Telefonica currently carry a Zacks Rank #3 (Hold).
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