Quarterly results January-Jun

RNS Number : 5475W

Telefonica SA

30 July 2009

 



TELEFÓNICA GROUP

Financial Highlights

• In the first half of 2009 the Telefónica Group posted a solid set of results, combining organic1 revenue growth with strong cash flow generation. Therefore, the Company reiterates its 2009 guidance for all metrics and its target to pay a dividend of 1.15 euros per share against 2009 results, in line with its commitment to progressively increase its dividend per share:

• Consolidated revenues rose 1.4% year-on-year in organic1 terms, totalling 27,588 million euros. 

• Consolidated OIBDA grew 3.0% in organic1 terms, to 10,939 million euros. 

• Operating cash flow (OIBDA-CapEx) strongly accelerated in the second quarter, increasing by 11.9% year-on-year in organic1 terms (up 4.5% to March) to 8,156 million euros in the first half, underlining the Company's ability to manage its expenses and investment in the current operating environment. 

• Net income climbed 10.7% year-on-year (up 13.7% in basic earnings per share) to 3,619 million euros in the first half, excluding the impact of capital gains registered in 2008 from the sales of Airwave and Sogecable. 

• In a context of lower market growth, Telefónica Group recorded a high commercial activity. At the end of June Telefónica managed close to 264 million accesses, up 7.6% year-on-year, boosted by robust growth in wireless (+9.9%), broadband (+14.1%) and pay TV (+19.4%) accesses.

• The Latin American businesses continued to grow at a fast pace and remained the Group's growth driver, with year-on-year increases in revenues and OIBDA in organic terms2 of 7.4% and 14.0%, respectively, in the first half. 

• The strength of Telefónica Europe's business was reflected in the 2.2% year-on-year organic1 increase in revenues and the 6.2% organic1 growth in OIBDA. 

• In Spain, some operating metrics showed signs of stability in the second quarter, while cash flow generation remained virtually stable despite lower revenues and OIBDA compared with the same period a year earlier (revenues -6.3%; OIBDA -6.9% in like-for-like terms3).

• Reported revenues fell by 2.0%, OIBDA dropped 1.7% and OI slipped 0.8%, while net income rose 0.7%, basically due to negative impact of exchange rate fluctuations and the impact of capital gains booked in 2008. The consolidated OIBDA margin reached 39.7% in the first half. 

• Cash flow per share stood at 0.78 euros for the first six months of 2009, a year-on-year increase of 6.9%. 

• The ratio of net debt + commitments to OIBDA stood at 2.1 times at the end of June, reflecting the Company's financial strength. 
  
  

1 Assuming constant exchange rates and including the consolidation of Telemig in January-March 2008. OIBDA and OI figures do not include the impact of capital gains registered in the second quarter of 2008 from the sale of Airwave and Sogecable.

2 Assuming constant exchange rates and including the consolidation of Telemig in January-March 2008. 

3 Comparable terms excludes: Universal Service (75 million euros in revenues and 22 million euros in OIBDA in the first quarter of 2009), the sale of bad debt portfolios (25 million euros in OIBDA in the first quarter of 2008), capital gains on property (0.4 million euros in OIBDA in the first half of 2009 and 68 million euros in OIBDA in the first half of 2008), the revision of the estimates for the adjustment to workforce provision provided for in prior periods, which has resulted in lower expenses of 90 million euros in the second quarter. 

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DISCLAIMER

This document contains statements that constitute forward looking statements about the Company including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. The forward-looking statements in this document can be identified, in some instances, by the use of words such as 'expects', 'anticipates', 'intends', 'believes', and similar language or the negative thereof or by forward-looking nature of discussions of strategy, plans or intentions.

Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ materially from those expressed in our forward looking statements. These risks and uncertainties include those discussed or identified in the documents filed by Telefónica with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator.

Analysts and investors are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Except as required by applicable law, Telefónica undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Telefónica's business or acquisition strategy or to reflect the occurrence of unanticipated events.

Neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities.

Finally, this document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Telefónica.

 

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