Telefonica Remains Optimistic After Q3 Report
Telefonica marked a sharp revenue decline year over year in the third quarter of 2020, but improved results compared wiuth the previous quarter. The company said its financial down happened to the impact of COVID-19.
Spanish based company posted a revenue decline of 12.1 percent YoY to €10.5 billion, and reported a net loss of €160 million due to an impairment allocated to Telefonica Argentina, albeit this was narrowed from a €443 million loss in the same period last year. CEO and chairman Jose Maria Alvarez Pallete remains optimistic, declaring the company was showing strength in the midst of an unusual situation.
“Thanks to the implementation of the strategy presented a year ago and the robustness of our business, trends are improving in the third quarter, with a clear recovery in commercial activity in our key markets. We are growing in revenue compared to the previous quarter. Furthermore, we continue to optimise the operating cash flow and move forward in line with our objective,” Alvarez Pallete said.
Revenue in home market Spain dropped 4.3 percent to €3.1 billion, put down to reduced roaming, although it was boosted by fibre take up. In the UK, revenue hit €1.6 billion, down slightly from €1.8 billion, Brazil fell to €1.7 billion from €2.5 billion and Germany remained flat at €1.8 billion.
Separately, the company also confirmed a partnership with the Allianz Group to establish a 50-50 joint venture to deploy fibre to the home services in Germany. Two companies said in a statement that they aim to deploy fibre in 2 million homes in rural and semi-rural areas, committing to an investment of €5 billion.