Telefonica cuts Capex by 4% in Q1 due to network optimisation

TelefonicaTelefonica said it achieved revenue of €13,132 million (+5 percent), OIBDA of €4,021 million (+4.8 percent) with stable margin of 30.6 percent, net income of €779 million (+42.2 percent) and €1,621 million (–4.4%) in Q1 2017.

The main focus of Telefonica CapeX for the first quarter of 2017 was on the deployment of ultra-fast networks. Telefonica’s investment of €1,621 million was 4.4 percent less as compared with Q1 2016, reflecting integration synergies, consolidation and network optimisation.

Jose Maria Alvarez-Pallete, chairman of Telefonica, said: “First quarter results reflected a further step forward in our business model, which is focused on the pursuit of sustainable growth. The differential quality of our asset portfolio enables us to offer differential services.”

LTE customers of Telefonica increased 1.7x, while the number of FTTx and cable users rose +21 percent. Telefonica has a total customer base of 347 million.

Telefonica’s mobile data revenues increased 13.5 percent.

OIBDA reflects a positive revenue evolution, cost containment efforts, and synergy capture and efficiencies from the transformation process.

Telefonica Capex

Telefonica achieved nearly 40 million premises passed with FTTX and cable (+14 percent), including 17.4 million in Brazil (FTTH and cable) and 17.5 million in Spain (FTTH). LTE coverage increased by 64 percent including 88 percent is in Europe.

Telefonica focused on the deployment of ultra-fast networks and amounted to €1,621 million (–4.4 percent), reflecting integration synergies, consolidation and network optimisation.

Telefonica’s Capex in Spain was €333 million.

Telefonica Deutschland Germany said Capex at €208 million (–4.2 percent) benefited from savings due to network consolidation and the rollout of a single LTE network.

Telefonica’s Capex in United Kingdom was €225 million (+30.8 percent), mainly for enhancing the LTE rollout.

In Brazil, Telefonica made an investment of €397 million for the expansion of the 4G network, the IP backbone and expansion of the fibre network. The Capex in Brazil is reflecting optimisation thanks to the use of big data and synergies.

Telefonica Hispanoamerica Capex was €430 million (–9 percent), mainly allocated to the rollout of 4G and fibre networks and to improve and increase the capacity of 2G and 3G mobile networks.

Baburajan K
[email protected]