Results bolstered by Brazil, other LatAm markets and tech division
Telefónica reported revenue of €10.34 billion in the first three quarters of the year to the end of September. This is an increase of 11.2% year on year and above analysts’ expectations of €10 billion.
Likewise, it beat analysts’ expectations of income before depreciation and amortisation at €3.18 billion, recording €3.25 billion instead.
Operating income before depreciation and amortisation (OIBDA) amounted to €3.249 billion in Q3, down 13% year on year: in the same period last year, capital gains exceeded €700 million from activities such as closing the FiBrasil deal and the sale of Telefónica Deutschland’s towers to American Tower Corporation, Telefónica Costa Rica to Liberty Latin America and 40% of InfraCo in Chile to KKR.
If these activities are excluded for comparison, underlying OIBDA grew 8.5% to €3.293 billion in Q3 2022.
Likewise, third-quarter net profit of €460 million beat analysts’ estimates dur to faster revenue growth and the 35% fall in quarterly compared to the same quarter last year was due to the merger and acquisition deals outlined above.
Naturally, Chairman and CEO Jose Maria Alvarez-Pallete (pictured) said “Telefónica continues to execute its strategic plan and the strength of the balance sheet allows the company to face the demands of this new digital era while maintaining its firm commitment to create a better, more connected and more equal world.”
Revenue from Brazil, which accounts for a fight of the group’s revenue, rose by 29%, and overall revenues from LatAm were up 18%, while its tech division grew 70% compared with the same period last year, reaching €386 million.