Telefonica Reports Higher Earnings - Analyst Blog
09 Maio 2013 - 4:41AM
Zacks
Spanish telecom giant,
Telefonica S.A. (TEF) reported first-quarter 2013
results, with earnings of 20 Euro cents per share (26 cents per
ADS) that rose 22.2% year over year.
The company recorded revenues of
€14,141 million ($20,541 million) in the first quarter that dropped
8.8% year over year on a reported basis and 1.6% on an organic
basis.
In the first quarter, adjusted
operating income, before depreciation and amortization (OIBDA),
fell 0.1% to €4,567 million ($6,032), resulting in an adjusted
OIBDA margin of 32.3%, down 50 basis points year over year.
Segment
Results
Telefonica Latin
America: Revenues increased 3.8% year over year to
€7,232 million ($39.2 billion) in the first quarter, driven largely
by Peru (9.7%), Uruguay (5.8%), Ecuador (5%), Argentina (5%),
Central America (3%), Chile (0.7%). However, revenues from Brazil,
Venezuela Columbia and Mexico registered a decline of 9.5%, 6.1%,
3.0%, and 0.6%, respectively in the first quarter.
Telefonica
Europe: Revenues from Europe slid 11.7% year over
year to €6,675 million ($8,815.6 million). The reported downside
was owing to the operator’s Spanish revenues that slipped 16.4%
year over year to €3,260 million ($4,305.5 million).
In Spain, Wireless revenues fell
24.7% to €1,286 million ($1,698.4 million) resulting from a
reduction in MTRs. Hurt by weak traffic revenues and repositioning
of the new tariff portfolio, Wireline revenues stood at €2,220
million ($2,931.9 million), down 10.9% from the year-ago
period.
In the reported period, revenues
from the Ireland and Czech Republic declined 12.1% and 6.2% year
over year to €136 million ($179.6 million) and €466 million ($615.4
million), respectively. Revenues from Germany and U.K. showed a
2.3% and 6.6% decrease to reach €1,230 billion ($1,624 million) and
€1,605 million ($2,119 million), respectively.
Subscriber
Statistics
At the end of the first quarter,
total customer access reached approximately 309 million, up 1.9%
year over year.
On an year over year basis, mobile
access rose 2.6% to 247.3 million customers. The total Internet and
data access grew 0.6% to 19.4 million. Pay-TV access reached 3.30
million, down 0.6% year over year. Fixed telephony access dropped
1.3% to 39.8 million subscribers at the end of the reported
period.
Liquidity and Capital
Expenditure (CapEx)
Telefonica exited the quarter with
a net debt of about €51.81 billion ($68.43 billion), up from €51.25
billion ($65.90 billion) recorded at the end of 2012. The leverage
ratio (net debt-to-EBITDA) stood at 2.41 times compared with 2.36
times in 2012.
CapEx was down 21.1% year over year
to €626 million ($827 million) in the reported period. Operating
cash flow (OIBDA-CapEx) was €1.679 ($2.217) million in the reported
period, up 23.1% year over year.
Our Take
Telefonica continues to remain
under pressure due to intensifying European woes, weak domestic
operations, slowdown in Brazil operations, adverse regulations, a
highly leveraged balance sheet and growing competition from
France Telecom S.A. (FTE), Vodafone
Group Plc (VOD) and America Movil S.A.B. de
C.V. (AMX).
Telefonica currently has a Zacks
Rank #3 (Hold).
AMER MOVIL-ADR (AMX): Free Stock Analysis Report
FRANCE TELE-ADR (FTE): Free Stock Analysis Report
TELEFONICA S.A. (TEF): Free Stock Analysis Report
VODAFONE GP PLC (VOD): Free Stock Analysis Report
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