Telefonica Group reported that its customer base reached 346.6 million at June 2019, and average revenue per user rose 4.4 percent, while managing a stable churn.
Telefonica posted 3.7 percent increase in revenues to €12.142 billion in the second quarter and €24.121 billion (+3.8 percent) January-June.
Telefonica achieved service revenues growth of 2.3 percent and handset sales growth of 16.7 percent.
Revenues from broadband and services beyond connectivity accounted for 55 percent of the total in the second quarter, reflecting the company’s focus on data monetization and digital services, as well as a further advance in the transformation process.
Telefonica’s digital service revenues reached €1.907 billion in April-June (+19 percent) and €3.783 billion in the first half of the year (+20.1 percent).
Telefonica’s operating expenses (Opex) were €8.259 billion in April-June (+2.8 percent) and €16.373 billion in January-June (–1.2 percent).
Telefonica’s Capex in January-June totalled €3.385 billion (–13.9 percent). The focus was on accelerating connectivity with the deployment of LTE and fibre networks, increased network capacity and virtualisation and improving quality and customer experience by implementing AI in the company’s technology platforms.
Telefonica’s FTTx/cable coverage reached 121 million of premises passed (53.2 million in own network (+12 percent); 22.2 million FTTH in Spain, 20.3 million in Brazil and 10.6 million FTTx/cable in HispAm (+29 percent).
Retail fibre and cable accesses connected amounted to 13.9 million (+14 percent). The LTE coverage reached 78 percent (95 percent in Europe and 73 percent in Latin America) and traffic accounts for 73 percent of the total.
Besides, Telefonica has reached network sharing agreements in Germany, Brazil and UK.
Telefonica Spain reported 0.3 percent increase in revenue to €3.175 billion in Q2. Telefonica Spain’s Capex rose 4.6 percent in the first half of the year to €813 million.
Telefonica Deutschland in Germany reported 1.6 percent growth revenues to €1.785 billion.
Capex of Telefonica Deutschland increased 16.9 percent to €496 million in H1. This was mainly due to LTE roll-out investment in suburban areas and network densification (~4,400 sites added by end of June) with a clear focus on improving customer experience.
Telefonica UK’s O2 reported revenues of €1.720 billion (+4.8 percent) in Q2 and €3.411 billion (+5.1 percent) in H1 — mainly driven by strong demand for higher value handsets supported by the success of the flexible Custom Plans.
Capex of O2 rose 2 percent to €409 million in H1 reflecting investment in network capacity and customer experience.
Telefonica Brasil reported revenues of €2.467 billion (+0.4 percent) in Q2 and €5.030 billion (+1.1 percent) in the first half thanks to mobile service revenues and handset sales.
Telefonica Brasil’s Capex rose 10 percent to €934 million in the first half of the year, mainly allocated to FTTH deployment (21 new cities deployed in H1) and the expansion of the 4G network to 3,166 cities covering 88 percent of the population.