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Telefonica posts Q2 organic sales up 1.3%, maintains outlook
2014-07-31 08:26:00| Telecompaper Headlines
(Telecompaper) Telefonica reported second-quarter revenues down 11.8 percent year-on-year to EUR 12.73 billion, hurt by continued weakness in its home market, divestments, exchange rates and regulatory effects. OIBDA fell 15.0 percent to EUR 4.13 billion, giving a margin of 32.4 percent. Excluding the sale of its Czech and Irish operations, Telefonica's organic revenues rose 1.3 percent, and OIBDA was down 0.7 percent. While revenues in Spain were still down 9.1 percent, the UK grew by 0.1 percent on an organic basis, Brazil was up 1.0 percent and the rest of Latin America increased revenue 11.3 percent. Net profit increased 4.9 percent year-on-year to EUR 1.21 billion. Telefonica said it was starting to see the benefits of increased network investment, with accelerated growth in mobile data and steady expansion of the TV and fibre customer bases. Capex was up 27.2 percent on an organic basis in the first half of the year to EUR 3.52 billion, while operating cash flow fell 13.5 percent to EUR 4.53 billion. Ne debt was up by EUR 10 billion in Q2 due to the dividend payment, reaching a total EUR 43.79 billion at the end of June. Including the proceeds from selling O2 Ireland, which closed in July, net debt was at 2.43 times EBITDA. Telefonica said the first-half results support its full-year outlook for stable organic revenues, a drop in the OIBDA margin of 0.9 percentage points year-on-year and capex at 13.7 percent of revenue.
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Category:Telecommunications