Telefonica, a leading telecommunications company, has announced impressive financial results for the second quarter of 2023, exceeding its initial projections.
Telefonica has raised its full-year financial targets, anticipating substantial organic revenue and OIBDA growth of approximately 4 percent and 3 percent, respectively. Despite challenging market conditions, Telefonica has managed to maintain its strong position and continue to expand its technological leadership.
Between April and June, Telefonica witnessed steady revenue growth, recording a 0.9 percent increase to €10,133 million. Moreover, the company’s net income soared by an impressive 44.5 percent, reaching €462 million during the same period. This robust performance has significantly contributed to the Telefonica’s solid financial standing.
Under the leadership of Chairman Jose Maria Alvarez-Pallete, Telefonica is embarking on a new vision for the future with its 2023-2026 plan. This blueprint centers on operational excellence built upon three pillars: Growth, Profitability, and Sustainability. By aligning its strategies with these fundamental principles, Telefonica aims to secure a prosperous and sustainable future.
During the first half of 2023, Telefonica’s total revenue amounted to €20,178 million, reflecting a remarkable 3.7 percent increase compared to the same period in the previous year. Geographically, the revenue distribution showcased the company’s global presence and diversification. Spain contributed 27 percent, Brazil and Hispam each accounted for 20 percent, Germany for 18 percent, and the United Kingdom for 13 percent.
Telefonica’s subsidiary, Telefonica Tech, has also experienced impressive growth in its revenues. In the second quarter of 2023, Telefonica Tech reported revenues of €456 million, a substantial 36.1 percent increase compared to the same period in 2022. In the first half of the year, revenues reached €885 million, marking an impressive surge of 39.6 percent.
The company’s customer base has continued to expand, with a total of 383.6 million accesses, driven particularly by strong growth in high-value added segments, such as fibre (up 15 percent) and mobile contracts (up 3 percent).
Telefonica’s success in maintaining its technological leadership can be attributed to its continuous transformation of networks. Focusing on unbundling and softwarisation of network architecture, addressing customer needs, meeting sustainability targets, and prioritizing privacy and security have enabled the company to accelerate fibre and 5G deployments. In line with this, Telefonica has planned to switch off the copper network in Spain by April 2024.
The company’s efforts in fibre deployment have been especially noteworthy, with a total of 169.7 million premises passed with UBB networks, marking a 3 percent increase. Additionally, Telefonica achieved a milestone of 68 million premises connected with FTTH (Fiber to the Home), reflecting a significant growth of 14 percent.
Telefonica’s strides in 5G deployment have also been remarkable. At the end of the second quarter, 5G coverage reached an impressive 86 percent of the population in Spain, over 2,800 towns and cities in the UK, more than 90 percent of the population in Germany, and 116 cities in Brazil.
As Telefonica continues to demonstrate its resilience and adaptability, it reaffirms its position as a global leader in the telecommunications industry. The company’s strong financial performance, commitment to technological advancements, and focus on sustainability and customer needs are driving forces behind its success in an ever-evolving market.