Telefónica Increases Revenues Across All Markets
Telefónica has accelerated its growth in the first quarter of 2022. Spanish-based telecom provider reported an increase in revenues in all the markets and a net income of €706 million. In the first three months of the year, the company also made progress in the execution of its strategic plan.
“Telefónica’s solid start to the year against a backdrop of inflationary tensions and geopolitical instability is evidence of the company’s strength in facing the most adverse situations. Once again, it confirms that the Group’s strategic plan is right and represents a valid and robust roadmap to continue providing the best service to our customers,” said José María Álvarez-Pallete, Chairman and CEO of Telefónica.
Revenues for the first quarter reached €10,883 million, representing a growth of 3.2% compared to the same period in 2021. In reported terms, revenue growth has spread across all markets in which the group operates, with double-digit increases in Brazil (+18.1%) and Hispam (+10.9%), for a total of €9,410 million. Of these revenues, 73% now come from broadband connectivity and digital services, up 2.1 percentage points compared to the same period in 2021.
Operating income before depreciation and amortization (OIBDA) increased 2.1% to €3,753 million, including 50% of VMO2, a joint venture created in the UK. In reported terms, it amounted to €3,199 million, again with double-digit increases in Brazil (+14.6%) and Hispam (+50.7%). For the first time in recent years, the favorable evolution of exchange rates had a positive effect on both revenues and OIBDA in the same quarter, with a contribution of €242 million in revenues and €95 million in operating income before depreciation and amortization.