Telefonica CEO Johan Dennelind: to invest up to SEK 4-5 bn in 2015 and 2016

Telefonica CEO Johan Dennelind today said the telecom operator will invest up to SEK 4-5 billion during 2015 and 2016.

“The Capex (capital spending) is aimed at driving growth and improve competitiveness, primarily through accelerating the Swedish fiber roll-out, establishing new offerings in the enterprise segment and upgrading data networks in Eurasia,” Dennelind said.

Telefonica will increase the number of households with its fiber services from 1.1 million to 1.9 million in Sweden between 2014 and 2018.

The telecom operator will invest SEK 2 billion in business transformation in 2015 and 2016 to reach net savings with a yearly run rate of SEK 2 billion during 2017.

Telefonica said its Q3 Capex increased 2.9 percent to SEK 1,184 million, while Capex for first nine months of the current year rose 1.4 percent to SEK 3,363 million.

Telefonica Q3 revenue and Capex

Telefonica Q3 sales

Telefonica sales decreased 2 percent in Q3 2014 to SEK 25,464 million, while service revenues dipped 0.6 percent.

EBITDA dropped 0.9 percent to SEK 9,439 million, while EBITDA margin was stable at 37.1 percent, said Telefonica.

Telefonica’s third quarter net income declined 12.2 percent to SEK 4,073 million.

The telecom operator said its Capex-to-sales will around 15 percent for the full year. Telefonica also did not change the outlook for revenue and net income.

Baburajan K
[email protected]