Telefónica’s Net Income Up 118 Percent in 1Q21

Telefónica recorded a net income of €886 million in the first three months of 2021, 118.3% more than in the same period of the previous year. The company claims that its performance put it on track to meet its 2021 financial targets.

Revenue fell 9% to €10.3 billion, with its main drivers from its four core markets of Spain (29%), Germany (18%), Brazil (16%) and the UK (15%). The company also highlighted strides in cash generation, which was up 200% to €727 million, although these funds are earmarked for payments made following spectrum auctions in the UK, Chile and Spain.

Net debt was down by 6.4% to €35.8 billion: Telefonica noted once pending deals complete, the figure would be reduced by a further €9 billion, taking it to around €26 billion, half the level it was in mid-2016. The company ended Q1 with 374.4 million customers, a 1.5% increase, mainly driven by its fibre business.

Telefonica said the results set it up to achieve its goals for 2021. Those goals consist of a stabilisation of revenues and operating income, as well as a return to a normal level of capex over revenues of up to 15%.