Telefónica’s full-year revenues fell 8.5 percent in 2013 to €57.06 billion, while net profit jumped 16.9 percent to €4.59 billion.

The Spain-based operator saw a 9.4 percent quarterly growth in the post-paid mobile sector and an eight percent rise in pay-TV access boosted the group’s customer base to 323.1 million accesses by the end of December, a 2.3 percent year-on-year rise.

Telefónica's Latin American business, which accounts for 51 percent of total sales, grew 9.6 percent but weaker currencies in Brazil, Argentina and Venezuela nudged 7.5 percentage points off revenues and operating income growth, Telefónica said.

This, combined with a 9.3 percent increase in mobile data sales, helped offset a 8.6 percent drop in revenues in Europe, with the price war in the Spanish home market eroding margins and pressuring the bottom line.

Meanwhile, Telefónica Digital saw sales increase by 19.4 percent during the past 12 months.

The operator forecast capital expenditure of between 15.5 and 16 percent of revenues this year, versus 14.5 percent in 2013. It also said that revenues are expected to show "positive growth" in 2014, after a 0.7 percent organic increase last year.

The EBITDA margin will remain under pressure, after dropping 0.2 points last year and 1.4 percent points in 2012. Telefónica said the margin could start to stabilise this year or fall by as much as 1 point if the company decides to spend on commercial opportunities.

The operator is in the middle of dealing with objections detailed by European Commission over its recent €8.6 billion offer for E-Plus. The officials in Brussels have noted that phone plan prices in Germany could rise by as much as a third for some users after Telefónica’s deal, which would reduce the number of German operators from four to three and create unhealthy competition.

The operator, who approved a corporate restructuring yesterday which is aimed at reducing costs, borrowed heavily to finance its expansion into Latin America and northern Europe, further added that it had lowered its net debt pile by almost €16 billion over the past 18 months.

The Chairman of Telefónica, César Alierta, said the operator will accelerate its transformation in 2014: "Among our targets, we will continue accelerating revenue growth and, at the same time, we will increase investments to anticipate to the growing demand from the increasingly intensive data service usage, as well as the recovery of demand expected in some of our main markets".

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms