Telefónica, "towards recovery" with record profit of 9,335 million until September

Telefónica has achieved a record profit of 9,335 million euros in the first nine months of the year, thanks to the capital gains obtained from the closing of the merger of O2 and Virgin Media in the United Kingdom and from the sale of the Telxius towers, as as the company has communicated to the National Securities Market Commission (CNMV).

With these extraordinary benefits, the telecommunications company shoots up its results compared to the period from January to September of the previous year, when 671 million euros were registered.

Reported revenues are estimated at 9,298 million euros in the July-September quarter, 11.1% less, and

than in the first nine months of 2020. Telefónica attributes those drops to "changes in the perimeter of the company."

For better or for worse, the accounts are altered by the base effect of the COVID year and by the two large operations recently closed, one for the merger and the other for the sale of infrastructure.

Investment in spectrum, fiber and 5G

Investment has increased by 20.3% until September, to reach 4,893 million euros, "with the focus on capturing growth opportunities."

Approximately 45% of the investment is dedicated to the deployment and development of fiber and 5G networks.

Discounting the payments made in the spectrum auction for 5G,

would remain at 3,904 million euros until September, a figure

.

The OIBDA, comparable to the EBITDA of other companies, is more than double in these first nine months than in the same period of the previous year: 20,620 million euros compared to 9,747 million.

Thus, the company ensures that "the financial objectives set for the year have been reached; that is, that revenues and OIBDA move between stabilization and slight growth in an organic manner, and that investment (CapEx) on sales returns. to be at a normalized level of up to 15% ", explained the Spanish multinational.

"During the third quarter, Telefónica's performance has been solid. The year-on-year growth rate of revenue and OIBDA has been maintained for the second consecutive quarter, with acceleration in revenue growth," explained José María Álvarez-Pallete, CEO from the company: "These results reflect

and social

of the markets in which we operate while the world continues to emerge from the worst effects of the pandemic. I am proud of the role that Telefónica plays in helping the society to prosper and build a greener future through digitization. "

The net financial debt has already been lowered to 25,000 million euros

at the end of September, 31.8% below the 36,676 million in which it was a year earlier.

In the last quarter, the debt has been cut by 4.6%, approximately 1,200 million euros.

Telefónica has refinanced debt for 5,407 million euros and has managed to extend the average life of its liabilities to 13.85 years, from the 10.79 years marked at the end of last year.

Cash generation reaches 2,482 million euros in the nine months of the year, 1,470 million if spectrum payments are excluded, below the 2,801 million euros registered from January to September 2020.

By markets, the top four in this group are Spain, which contributes 29% of the business;

Germany, with 18%;

Brazil, which has lost weight and represents 16%;

and the United Kingdom, with 15%.

Hispano-America, a region in which Telefónica is retreating, today contributes 19% of the billing.

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