Telefonica reveals achievements from 5G business and Capex plans

Telefonica has revealed its achievements from 5G business and Capex plans for the remaining quarters of 2021.
Telefonica’s 5G network in SpainTelefonica has allocated 50 percent of Capex (ex spectrum) in the core 4 markets to NGN. Telefonica’s Capex / Sales ratio was 13 percent in Q1 2021.

Telefonica passed 25.7 million FTTH premises in Spain. Telefonica Spain has achieved 80 percent 5G coverage.

Telefonica Germany’s 5G network is active in >30 cities and Capex increased 1.8 percent in Q1.

Telefonica UK’s 5G coverage expanded to 180 towns and cities.

Telefonica said it digitalized 79 percent of processes and 35 percent of sales in the first quarter of 2021.

Revenue

Telefonica’s first quarter revenue dropped 9 percent to €10.34 billion in the first quarter of 2020. Telefonica posted net income of €886 million in the first three months of 2021. Telefonica said these results show the resilience of the company’s business model and the effectiveness of the management, focused on cost reduction and stable operating cash flow.

The four main markets, Spain, Germany, UK and Brazil, contributed 78 percent of revenue and 88 percent of OIBDA. Spain accounted for 29 percent of the revenues and 35 percent of OIBDA, Germany 18 percent and 16 percent, the UK 15 percent and 16 percent and Brazil 16 percent and 21 percent, respectively. Hispam accounted for 19 percent of revenues and 12 percent of OIBDA.

“These results reflect the success of our strategic plan and Telefonica’s ability to execute and to achieve sustainable and profitable growth, driven by our technology businesses and the deployment of the best networks and services,” said Jose Maria Alvarez-Pallete, Chairman and CEO of Telefonica.

Telefonica’s access base grew 1.5 percent to 347.4 million, with growth in the high-value user segment thanks to the Group’s differentiated infrastructures.

Retail ultra-broadband (UBB) accesses rose by 8.2 percent in the last year and fibre-to-the-home (FTTH) accesses by 23.5 percent, representing 53 percent of retail broadband customers. Increased customer satisfaction is reflected in a Net Promoter Score (NPS) improvement to a record 27 percent in the four main markets.

Telefonica ended the first quarter with 137.1 million premises passed with fibre, 6 percent more than a year ago.