UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2023
Commission File Number: 001-09531
Telefónica, S.A.
(Translation of registrant's name into English)
Distrito Telefónica, Ronda de la Comunicación s/n,
28050 Madrid, Spain
+34 91-482 87 00
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(7):
Telefónica, S.A.
TABLE OF CONTENTS
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Sequential Page Number |
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1. |
Quarterly Results of Telefónica Group: January- December
2022 |
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TABLE OF CONTENTS
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Telefónica |
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Telefónica España
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Telefónica Brasil
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Telefónica Tech
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Appendix
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The financial information related to January-December 2022
contained in this document has been prepared under International
Financial Reporting Standards (IFRS), as adopted by the European
Union, which do not differ for the purposes of the Telefónica
Group, from IFRS as issued by the International Accounting
Standards Board (IASB).
Telefónica’s management model, regional and integrated, means that
the legal structure of the companies is not relevant for the
release of Group financial information, and therefore, the
operating results of each of these business units are presented
independently, regardless of their legal structure. For the purpose
of presenting information on a business unit basis, revenue and
expenses arising from invoicing among companies within Telefónica’s
perimeter of consolidation for the use of the brand and management
contracts have been excluded from the operating results for each
business unit. This breakdown of the results does not affect
Telefónica’s consolidated earnings.
The English language translation of the consolidated financial
statements originally issued in Spanish has been prepared solely
for the convenience of English speaking readers. Despite all the
efforts devoted to this translation, certain omissions or
approximations may subsist. Telefónica, its representatives and
employees decline all responsibility in this regard. In the event
of a discrepancy, the Spanish-language version
prevails.
Results presentation
The management will host a webcast to discuss the results at
10:00am CET on 23rd
February 2023. To access the webcast, please click
here.
For more information, please contact:
Adrián Zunzunegui (adrian.zunzunegui@telefonica.com);
Isabel Beltrán (i.beltran@telefonica.com);
Torsten Achtmann (torsten.achtmann@telefonica.com);
ir@telefonica.com;
Phone: +34 91 482 87 00
Telefónica
Q4 2022
Financial Results
23rd
February 2023
Steady execution of our strategy whilst delivering sustainable
growth
Highlights
•Strengthened
position in core markets.
Improving momentum in
Spain;
service revenue back to growth and sequential OIBDA improvement.
1GHz obtained in new 26 GHz spectrum. In
Brazil
Vivo maintained its strong operating boost, accelerating FTTH
rollout (23.3m premises passed to Dec-22) and mobile contract
market share of 43.5%, with double digit y-o-y growth in Q4 organic
revenue.
Germany;
sustained network quality, surpassed 5G initial rollout goals and
solid commercial traction reflected in accelerated revenue and
OIBDA growth y-o-y in Q4 22.
VMO2
continued its operating progress and posted strong and improved
profitability driven by synergies along with a return to y-o-y top
line growth.
T. Infra
obtained regulatory approvals and closed its fibre vehicles in
Spain and UK and increased stake in Telxius.
T. Tech
grew again ahead of the market (Q4 22 revenue +33.7% y-o-y) and
continued to broaden its portfolio and internal capabilities to
adapt to B2B customer requirements.
•Robust
and future-proof networks; enhanced digital
platforms.
◦Leading
FTTH roll-out y-o-y (168.1m UBB PPs; 64.5m FTTH, +16%), accesses
+17%. Progress in 5G coverage
◦Pioneers
on alternative network deployment models
•Accelerated
profitable growth in Q4 22 y-o-y organic.
◦Q4
22 revenue +3.9%, OIBDA +3.5%; OIBDA-CapEx +4.7%
◦Sound
profitability; stable OIBDA margin after managing inflationary
pressures
◦Prioritising
investments (FY 22 CapEx/Sales 14.8% organic)
•Resilient
performance in a challenging year 2022 (y-o-y).
◦Reported
revenue +1.8%, up for the 1st
time since 2015. Underlying OIBDA grew for 2nd
consecutive Q (+6.0%)
◦Forex
tailwinds ex hyperinflationary economies (ARG & VEN); +€1,748m
in revenue and +€660m in OIBDA
◦Changes
in the perimeter normalising from H2 (-€2,785m and -€1,000m in
revenue and OIBDA in FY 22)
•Strong
FCF generation;
€4,566m in FY 22 (+72.5% y-o-y); €2,093m in Q4 (+77.7% after €1.3bn
tax refund).
◦FCF
per share €0.80/share in FY 22 (+76.2% y-o-y), comfortably covering
the dividend (€0.3/share)
•Net
financial debt
(€26.7bn as of Dec-22) decreased €2.0bn in Q4 22. FY 22 leverage
reduced by -0.1x to 2.54x.
•Solid
position to face the rise in interest rates;
above 80% of our debt at fixed rates; debt maturities covered over
the next three years. Maintained long average maturity of debt at
13.1 years.
•Proactively
managed debt and hybrid capital base;
€750m and €1bn issuances of green hybrid bonds and repurchase of
the hybrids with a call date in March, Sep-23 and
Mar-24.
•Strong
balance sheet;
shareholder’s equity €25.1bn in Dec-22 +13.0% y-o-y.
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FY 22 |
Q4 22 |
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Reported
(€m) |
y-o-y reported % Chg |
Reported
(€m) |
y-o-y reported % Chg |
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Revenue |
39,993 |
1.8 |
10,200 |
5.4 |
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OIBDA |
12,852 |
(41.5) |
3,259 |
139.2 |
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OIBDA underlying |
12,940 |
(0.6) |
3,419 |
6.0 |
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Net Income |
2,011 |
(75.3) |
525 |
c.s. |
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FCF
(incl. leases principal payments)
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4,566 |
72.5 |
2,093 |
77.7 |
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Net Financial Debt
ex-leases
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26,687 |
2.3 |
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FY 22 |
Q4 22 |
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Reported + 50% VMO2 JV (€m) |
y-o-y organic % Chg |
Reported + 50% VMO2 JV (€m) |
y-o-y organic % Chg |
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Revenue |
45,978 |
4.0 |
11,751 |
3.9 |
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OIBDA |
15,066 |
3.0 |
3,802 |
3.5 |
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OIBDA - CapEx
(ex- spectrum)
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8,067 |
1.8 |
1,677 |
4.7 |
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Commenting on the results, José María Álvarez-Pallete, Chairman and
CEO of Telefónica, said:
"In Q4 we accelerated organic revenue and OIBDA growth supported by
strong commercial momentum together with cost and CapEx
efficiencies. FCF increased by more than 77% and net financial debt
declined to €26.7bn.
We delivered on all our financial targets for 2022, which we
upgraded at the first half results, and not only continued to
report organic growth but now also started growing in euro terms.
In a very challenging year, we demonstrated our resilience and
ability to mitigate adverse macro developments. We executed our
strategy to build a stronger, future proof Telefónica and focused
our investments on next generation networks, while maintaining a
disciplined capital allocation framework. This allowed us to
generate a robust FCF, which not only well covered our dividend but
also allowed us to reduce leverage while maintaining high liquidity
on our balance sheet. At the same time, we embraced the industry
wide transformation and actively support the transition to a fairer
regulatory environment.
Looking ahead into 2023 we are excited about the undergoing
transformation of our company and feel well positioned to continue
on our profitable growth path. We will remain disciplined on
capital allocation and prioritise our investments into
differentiated connectivity projects. Meanwhile, we continue to
build on our solid sustainability record and contribute over €95bn
annually in positive impact towards the SDGs".
Outlook
January-December 2022 results delivered guidance updated in Q2 22
results
(organic1
including 50% of VMO2 JV) against a challenging
backdrop:
•Revenue:
“high-end of the low single digit growth” range. FY 22 Revenue
+4.0%
•OIBDA:
“mid-to-high-end of the low single digit growth” range. FY 22 OIBDA
+3.0%
•CapEx
(ex-spectrum) to sales ratio
of up to 15%. FY 22 CapEx/Sales
14.8%
For 2023, financial targets as follows
(organic2
y-o-y including 50% of VMO2 JV):
•Revenue
"low single digit growth"
•OIBDA
"low single digit growth"
•CapEx
(ex spectrum) to sales ratio
at around 14%
Telefónica also confirms its shareholder remuneration for 2022 and
announced that for 2023:
•Dividend
for 2022
of €0.30 per share in cash, €0.15 paid in December 2022, €0.15 will
be paid in June 2023.
•Reduction
of share capital
through the cancellation of the Company's own shares (139,275,057)
in April 2022.
•Dividend
for 2023
of €0.30 per share in cash to be paid in December 2023 (€0.15) and
June 2024 (€0.15).
•To
cancel shares representing 0.4% of the share capital held as
treasury stock
(June 30th, 2022).
•For
such purposes, the adoption of the corresponding corporate
resolutions will be proposed to the AGM.
1
Includes 50% of VMO2 JV results. Assumes
constant exchange rates of 2021 (average in 2021). Excludes the
contribution to growth from T. Argentina and T.
Venezuela.
Considers constant perimeter of consolidation and does not include
capital gains/losses from the sale of companies, for significant
impacts. Does not include write-offs, material non-recurring
impacts and restructuring costs. CapEx excludes investments in
spectrum.
2
2023
Guidance: Includes 50% of VMO2 JV results. Assumes constant
exchange rates of 2022 (average in 2022). Excludes the contribution
to growth from T. Argentina and T. Venezuela. Considers constant
perimeter of consolidation and does not include capital
gains/losses from the sale of companies, for significant impacts.
Does not include write-offs, material non-recurring impacts and
restructuring costs. CapEx excludes investments in
spectrum.
Operational performance
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TELEFÓNICA ACCESSES |
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Unaudited figures (thousands) |
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2021 |
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2022 |
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March |
June |
September |
December |
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March |
June |
September |
December |
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% Chg |
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Retail Accesses |
341,123 |
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343,475 |
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341,888 |
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344,946 |
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343,688 |
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359,158 |
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357,964 |
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357,213 |
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3.6 |
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Fixed telephony accesses |
32,007 |
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31,396 |
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30,521 |
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29,967 |
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29,281 |
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28,549 |
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28,151 |
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27,942 |
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(6.8) |
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Broadband |
25,587 |
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25,663 |
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25,713 |
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25,833 |
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25,836 |
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25,924 |
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26,108 |
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26,304 |
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1.8 |
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UBB |
21,072 |
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21,482 |
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21,873 |
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22,282 |
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22,555 |
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22,920 |
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23,328 |
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23,758 |
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6.6 |
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FTTH |
10,575 |
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11,143 |
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11,710 |
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12,244 |
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12,698 |
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13,179 |
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13,720 |
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14,273 |
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16.6 |
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Mobile accesses |
271,780 |
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274,917 |
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274,264 |
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277,793 |
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277,394 |
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293,655 |
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292,749 |
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292,168 |
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5.2 |
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Prepay |
131,509 |
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131,764 |
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129,148 |
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129,676 |
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126,691 |
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135,529 |
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132,771 |
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129,686 |
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— |
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Contract |
113,511 |
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114,988 |
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115,900 |
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117,432 |
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118,439 |
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124,163 |
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124,974 |
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126,242 |
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7.5 |
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IoT |
26,760 |
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28,165 |
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29,216 |
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30,685 |
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32,265 |
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33,963 |
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35,004 |
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36,240 |
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18.1 |
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Pay TV |
11,447 |
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11,258 |
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11,152 |
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11,112 |
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10,952 |
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10,812 |
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10,741 |
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10,587 |
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(4.7) |
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Wholesale Accesses |
23,066 |
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23,747 |
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23,855 |
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24,173 |
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24,681 |
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25,008 |
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25,574 |
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25,933 |
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7.3 |
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Fixed wholesale accesses |
3,698 |
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3,680 |
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3,700 |
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3,695 |
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3,703 |
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3,682 |
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3,688 |
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3,666 |
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(0.8) |
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Mobile wholesale accesses |
19,368 |
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20,068 |
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20,155 |
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20,479 |
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20,977 |
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21,326 |
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21,886 |
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22,267 |
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8.7 |
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Total Accesses |
364,189 |
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367,222 |
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365,742 |
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369,119 |
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368,369 |
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384,166 |
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383,538 |
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383,146 |
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3.8 |
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Notes:
- Includes VMO2's accesses since Jan-21; in Jun-22 include, in
VMO2, a -282k voice and -22k broadband legacy base adjustment
relating to nil revenue connections.
- Includes Oi mobile accesses since Apr-22; 3.4m inactive mobile
accesses acquired to Oi were disconnected; of those accesses, 3.0m
were disconnected in Sep-22 (0.8m contract and 2.2m prepaid) and
0.3m in Dec-22 (0.2m contract and 0.2m prepaid).
- FTTH accesses includes mainly Spain, Brazil and Hispam
connections.
- Includes in Mar-22, in T. España, an update of 500k IoT
accesses.
- Includes in Dec-22, in T. Deutschland, a revenue-neutral
technical base adjustment of 2.5m prepaid accesses (introduction of
a stricter active SIM card definition).
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OWN UBB NETWORK COVERAGE |
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Unaudited figures (thousands) |
2021 |
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2022 |
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March |
June |
September |
December |
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March |
June |
September |
December |
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% Chg |
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UBB Premises passed |
153,169 |
155,366 |
157,265 |
159,841 |
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162,946 |
164,695 |
166,328 |
168,057 |
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5.1 |
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Owned (Fully/Partially) |
77,915 |
79,256 |
80,882 |
82,858 |
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84,880 |
86,014 |
87,181 |
88,793 |
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7.2 |
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Total FTTH |
49,271 |
51,414 |
53,523 |
55,814 |
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57,972 |
59,692 |
62,187 |
64,499 |
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15.6 |
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Owned (Fully/Partially) |
47,917 |
49,636 |
51,440 |
53,473 |
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55,506 |
57,054 |
59,368 |
61,563 |
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15.4 |
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Uptake FTTH |
27 |
% |
27 |
% |
27 |
% |
27 |
% |
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27 |
% |
27 |
% |
27 |
% |
27 |
% |
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0.1 p.p. |
Notes:
- Total premises passed include owned coverage in Spain, UK, Brazil
and Hispam as well as third-party agreements. Includes VMO2's UBB
premises passed since January 2021.
- FTTH uptake includes FTTH connected accesses in Spain (including
wholesale), Brazil and Hispam divided by the total FTTH premises
passed.
- 2021 numbers have been updated due to a regularisation of Peru's
cable premises passed.
Improving customer base mix
The Group’s
accesses base
reached 383.1m in Dec-22, +4% y-o-y, with FTTH +17% and mobile
contract +8%.
Enhanced infrastructure and IT
We maintain our accelerated FTTH deployment across our footprint
and continue with the dismantling of all copper facilities by 2025
in Spain.
This is further supported by our first analysis on the benefit of
the life cycle of our connectivity solutions, based on the European
Taxonomy of Sustainable Activities for the ICT sector, indicating
that in the fixed network the
environmental impact
per PB is 18x lower in FTTH vs copper and in the mobile network is
7x lower in 5G vs 4G. This is due to our energy efficiency, design
of technologies and investments in renewable energies, among
others.
We deploy
greener technology,
as FTTH is 85% more efficient in energy consumption than copper and
5G is 90% more energy efficient than 4G per unit of
traffic.
We are a technological leader in
fibre,
the optimal carrier for the next fifty years, and continue to hold
the global lead (ex-China) in total
UBB
PPs with 168.1m as of Dec-22,
+5%
y-o-y.
FTTH
PPs increased +16% y-o-y to 64.5m PPs. Fibre vehicles allow to
expand our footprint
while optimising CapEx and returns
with a greener technology.
5G
is available in our core markets. 5G SA was launched in Brazil and
it will be launched in UK, Germany, and Spain during 2023. 5G
roll-out is in line with market demand.
5G coverage:
>1,600 towns and cities in UK, >80% population in Germany,
85% in Spain and 39 cities in Brazil.
LTE:
90% pop. (99% in Europe and 87% in Latam), up 3 p.p.
y-o-y.
We are
upgrading our fibre network
(XGS-PON ready). The transition from 1Gbps to 50Gbps could be made
with minimal CapEx and would result in new capabilities, services,
and backhaul and optimisation for 5G networks.
In the
Open
Broadband
project,
tests progressed during 2022 and commercial rollout is expected for
2023 in Brazil.
In parallel, 49.8m CPEs have been manufactured under the
Telefónica’s Device Development Center.
We have reached 12m HGUs deployed (for 95% of our FTTH customers),
and started the deployment of the evolution of these
HGUs incorporating WiFi6 functionalities (25% more coverage, x3.5
speed, 40% more capacity for simultaneous devices). On the other
hand, with
OPA-H (Open Access for Home) we work to build a differential value
proposition via our CPE and APIs with new services own and from
third parties.
Virtualisation and softwarisation,
the
telco cloud paradigm,
Open RAN
architectures in mobile networks,
Open Broadband
in fixed networks and the
evolution of Systems
are key for the new digital reality. Cloud environments enable
on-demand Virtual Network Functions (VNF) and Software Define
Networks (SDN) can dynamically change the network topology
according to the load and service requirements further increasing
the flexibility of 5G networks.
Open RAN virtualisation
drives a simpler and more automated IT mobile architecture. We have
a strategic advantage in the
Multi Edge Computing
ecosystem which leverages on key partnerships (Microsoft and
Google), commercial solutions, and our ability to equip Central
Offices (COs) with Edge platforms and 5G. 83% of
Telefonica's
processes
are
digitalised
(+3 p.p. y-o-y).
Thus, we are working to make
Network Slicing
commercially available. The first step will be static slicing
during 2023 and later we will continue with dynamic slicing. A key
project to leverage our networks is
NaaS.
We are working internally and in collaboration with the industry
(GSMA), to expose our telco capabilities to third parties to enable
them to develop new advanced services, like Metaverse/Web3 or
private networks as a service, and to enhance their end-user
application experience.
To
stabilise electricity consumption, costs and CO2 emissions, we
implement efficiency projects in line with our commitment to
fighting climate change.
100% of electricity used across core markets is renewable, as well
as in Perú and Chile. In 2022, we introduced renewable energy in
some Hispam markets (Argentina and Ecuador) and progressed in
Distributed Generation in Brazil (installing 48 power plants of a
total 85 planned) that will allow to generate > 700GWh renewable
energy per year.
We are
reducing energy consumption,
with
legacy switch off
or reducing
RAN
consumption among initiatives. Since 2015, consumption (electricity
+ fuel) was reduced
7.2% while traffic managed by our networks increased
>7.4x.
In Spain, 788 COs were closed in FY 22 (2,236 since 2014), with
copper migration targeted for 2024. Hispam progressed in
multi-layer and 2G switch-off. Our network transformation helps to
our
goal of net-zero emissions in 2040,
with interim target of reducing its scope 1+2 emissions by 90% and
neutralising unabated emissions in core markets by
2025.
Financial performance
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|
|
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|
|
|
|
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|
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|
|
|
|
|
|
|
|
TELEFÓNICA |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
Reported |
|
2022 |
2021 |
|
Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
39,993 |
39,277 |
|
1.8 |
|
10,200 |
9,674 |
|
5.4 |
|
Other income |
|
2,065 |
12,673 |
|
(83.7) |
|
538 |
654 |
|
(17.8) |
|
Operating expenses |
|
(29,082) |
(29,500) |
|
(1.4) |
|
(7,398) |
(8,570) |
|
(13.7) |
|
Impairments & losses on disposal of assets |
|
(124) |
(467) |
|
(73.4) |
|
(81) |
(396) |
|
(79.4) |
|
Underlying operating income before D&A (OIBDA) |
|
12,940 |
13,023 |
|
(0.6) |
|
3,419 |
3,226 |
|
6.0 |
|
Operating income before D&A (OIBDA) |
|
12,852 |
21,983 |
|
(41.5) |
|
3,259 |
1,363 |
|
139.2 |
|
OIBDA Margin |
|
32.1 |
% |
56.0 |
% |
|
(23.8 p.p.) |
|
31.9 |
% |
14.1 |
% |
|
17.9 p.p. |
|
Depreciation and amortisation |
|
(8,796) |
(8,397) |
|
|
4.8 |
|
(2,126) |
(2,102) |
|
|
1.1 |
|
Operating income (OI) |
|
4,056 |
13,586 |
|
(70.1) |
|
1,132 |
(740) |
|
c.s. |
|
Share of profit (loss) of investments accounted for by the equity
method |
|
217 |
(127) |
|
c.s. |
|
(263) |
(70) |
|
277.5 |
|
Net financial income (expense) |
|
(1,313) |
(1,364) |
|
(3.7) |
|
80 |
(426) |
|
c.s. |
|
Profit before taxes |
|
2,960 |
12,095 |
|
(75.5) |
|
949 |
(1,235) |
|
c.s. |
|
Corporate income tax |
|
(641) |
(1,378) |
|
(53.5) |
|
(326) |
177 |
|
c.s. |
|
Profit for the period |
|
2,319 |
10,717 |
|
(78.4) |
|
624 |
(1,058) |
|
c.s. |
|
Attributable to equity holders of the Parent |
|
2,011 |
8,137 |
|
(75.3) |
|
525 |
(1,198) |
|
c.s. |
|
Attributable to non-controlling interests |
|
308 |
2,580 |
|
(88.0) |
|
99 |
140 |
|
(29.1) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding during the
period (millions) |
|
5,740 |
5,864 |
|
(2.1) |
|
5,699 |
5,804 |
|
(1.8) |
|
Basic earnings per share attributable to equity holders of the
Parent (Euros) |
|
0.31 |
1.34 |
|
(76.7) |
|
0.08 |
(0.22) |
|
c.s. |
|
Underlying basic earnings per share attributable to equity holders
of the Parent (Euros) |
|
0.33 |
0.41 |
|
(18.7) |
|
0.12 |
0.07 |
|
76.0 |
- The weighted average number of ordinary shares outstanding during
the period has been obtained applying the IAS rule 33 "Earnings per
share". Thereby, the weighted average of shares held as treasury
stock have not been taken into account as outstanding shares. On
the other hand, the denominator is retrospectively adjusted for
transactions that have changed the number of shares outstanding
without a corresponding change in resources (as if such
transactions had occurred at the beginning of the earliest period
presented). For instance, the bonus share issue carried out to meet
the scrip dividends paid in
June and December 2021, as well as June 2022, have
been taken into account.
- Basic earnings per share ratio is calculated dividing Profit for
the period Attributable to equity holders of the Parent, adjusted
for the net coupon corresponding to “Other equity instruments”
(€209m in January-December 2022 and €253m in January-December
2021), by the weighted average number of ordinary shares
outstanding during the period.
In Q4, FX movements (excluding countries with hyperinflationary
economies, Argentina and Venezuela) were supportive y-o-y mainly on
the appreciation of the Brazilian real vs. the euro. Thus, the FX
impact on revenue was +€487m and +€190m in OIBDA (+€1,748m and
+€660m, respectively, in FY 22; including 50% VMO2 results +€1,799m
and +€679m). On net debt, FX had a negative impact of €0.8bn, or
€1.1bn at net debt plus leases in FY 22. The contribution to y-o-y
growth from hyperinflationary countries amounted to -€353m in
revenue and -€70m in OIBDA in Q4 (vs +€27m and -€13m in FY 22),
mainly due to T. Argentina on the peso depreciation (c. -30% in Q4
22). Impacts from changes to the perimeter remained limited in Q4
22 (-€30m on revenue and -€17m on OIBDA; -€2,785m and -€1,000m in
FY 22).
Revenue
grew 5.4% y-o-y in Q4 22 (+1.8% y-o-y in FY 22). The sequential
y-o-y deceleration (+11.2% in Q3) was mainly due to the effect of
T. Argentina (-€352m in Q4 22; +€139m in Q3). In organic terms,
revenue increased 3.9% y-o-y in Q4 (+4.0% in FY 22), service
revenue grew 4.1% y-o-y and handset sales +2.4% (+3.2% and +10.7%
respectively in FY 22).
The weight of revenue from broadband connectivity and services
beyond connectivity increased by 2.3 p.p. y-o-y to 73% of total
service revenue in reported terms, while share of voice and access
decreased by 1.6 p.p. to 27% in FY 22.
B2B revenue
continued to improve to +7.9% y-o-y organic growth in Q4 22 (+5.3%
y-o-y in FY 22 to €8.6bn). Growth accelerated by 1.4 p.p. q-o-q
mainly due to a better performance across most business units and
particularly by the higher revenue increase in the Corporate
segment.
Other income
amounted to €538m in Q4 22 (€2,065m in FY 22), including the
capital gain from the closing of the Fibreco in UK (+€20m), offset
by a -€21m adjustment in the capital gain of the InfraCo in
Colombia (€0.2bn booked in Q1 22). 2021 figures (€654m in Q4 21 and
€12,673m in FY 21) were affected by capital gains from the creation
of VMO2's JV, the sale of Telxius towers, the sale of T. Costa Rica
and the fibre vehicles in Brazil and Chile.
Operating expenses
decreased 13.7% y-o-y in Q4 22 mainly affected by €1.5bn
restructuring costs in Q4 21 (vs. €83m in Q4 22 in Spain, Germany,
Hispam and 'Other companies & eliminations'). In organic terms,
OpEx increased 3.0% y-o-y in Q4 mainly due to higher supply and
personnel costs, partially offset by lower other operating
expenses. OpEx was down -1.4% y-o-y in FY 22 (+5.1% y-o-y in
organic terms).
Impairments and losses on disposal of assets
amounted to €81m in Q4 22 and €124m in FY 22, mainly related to an
impairment in Argentina of €77m (€396m in Q4 21 and €467m in FY 21,
primarily associated to an impairment in Peru).
Operating income before depreciation and amortisation
(OIBDA)
increased 139.2% y-o-y in Q4 22 affected by the above mentioned
impacts (restructuring, impairments, capital gains, FX and T.
Argentina effect). OIBDA was up +3.5% y-o-y in organic and +6.0% in
underlying terms. In FY 22, OIBDA was -41.5% y-o-y, +3.0% organic
and -0.6% underlying.
OIBDA margin
in organic terms was stable, -0.1 p.p. y-o-y to 33.4% in Q4 22
(-0.3 p.p. y-o-y to 32.9% in FY 22).
Depreciation and amortisation
was up +1.1% y-o-y in Q4 22 mainly due to FX impacts, down -2.7%
y-o-y in organic terms. In FY 22, it was up +4.8% y-o-y (-1.3%
y-o-y organic).
Share of profit of investments accounted for by the equity
method
amounted to -€263m in Q4 22 and +€217m in FY 22, primarily
including VMO2's results mainly affected by the change in fair
value of derivatives (-€232m in Q4 and +€515m in FY 22, net of
taxes).
Net financial income
amounted to a positive €80m in Q4 22 (-€426m in Q4 21) positively
impacted by interests from the tax refund in Spain (+€526m,
pre-tax). In FY 22 net financial expenses amounted to €1,313m
(€1,364m in FY 21).
Corporate tax expenses
totalled €326m in Q4 22 and €641m in FY 22, mainly affected by the
increase in the Peruvian tax provision and the fiscal effect from
the tax refund’s interests.
Profit attributable to non-controlling interests
was down -29.1% y-o-y in Q4 22 mainly due to lower profit from
minority interests of T. Brasil and T. Colombia, partially offset
by higher profit from minority interests of T. Deutschland. FY 22
y-o-y variation (-88.0%) was affected by the sale of Telxius towers
in 2021.
Profit attributable to equity holders of the parent company
amounted to €525m in Q4 22 with
earnings per share
of €0.08 (-€1,198m and -€0.22 in Q4 21). In underlying terms, net
income totalled €757m (+65.0% y-o-y) with EPS of €0.12 (+76.0%
y-o-y) after excluding -€58m of restructuring, +€11m of capital
gains and -€186m of other impacts. In FY 22, net income amounted to
€2,011m and EPS to €0.31, in underlying terms to €2,101m (-18.2%
y-o-y) and EPS to €0.33 (-18.7% y-o-y), after excluding -€120m of
restructuring, +€70m of capital gains and -€40m of other
impacts.
Cash flow and funding
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA |
|
|
|
|
RECONCILIATIONS OF CASH FLOW AND OIBDA MINUS CAPEX |
|
|
|
|
Unaudited figures (Euros in millions) |
January - December |
|
|
|
|
|
2022 |
2021 |
% Chg |
|
|
|
|
|
|
|
|
|
|
OIBDA |
12,852 |
|
21,983 |
|
(41.5) |
|
- CapEx accrued during the period |
(5,819) |
|
(7,267) |
|
|
|
- Non-cash items & Others (1) |
(35) |
|
(9,119) |
|
|
|
- Working Capital |
387 |
|
1,010 |
|
|
|
- Net interest payment |
(1,236) |
|
(1,518) |
|
|
|
- Dividends received |
944 |
|
210 |
|
|
|
- Payment for tax |
(92) |
|
(459) |
|
|
|
- Dividends paid to minority shareholders |
(438) |
|
(410) |
|
|
|
= Free Cash Flow excluding Lease Principal Payments |
6,562 |
|
4,430 |
|
48.1 |
|
- Lease Principal Payments |
(1,996) |
|
(1,782) |
|
|
|
= Free Cash Flow including Lease Principal Payments |
4,566 |
|
2,648 |
|
72.5 |
|
Weighted average number of ordinary shares outstanding during the
period (millions) |
5,740 |
|
5,864 |
|
|
|
= Free Cash Flow per share (Euros) |
0.80 |
|
0.45 |
|
76.2 |
|
- The weighted average number of ordinary shares outstanding during
the period has been obtained applying the IAS rule 33 "Earnings per
share". Thereby, the weighted average of shares held as treasury
stock have not been taken into account as outstanding shares. On
the other hand, the denominator is retrospectively adjusted for
transactions that have changed the number of shares outstanding
without a corresponding change in resources (as if such
transactions had occurred at the beginning of the earliest period
presented). For instance, the bonus share issue carried out to meet
the scrip dividends paid in June and December 2021, as well as June
2022, have been taken into account.
- Spectrum payments amounted to €135m in January-December 2022
(mainly €108m in Germany and €20m in Hispam). In January-December
2021 totalled €1,107m (mainly €521m in the UK, €343m in Spain,
€135m in Hispam and €108m in Germany).
(1) In January-December 2022 it was associated mainly with
Colombia's InfraCo capital gain (€0.2bn), an impairment in T.
Argentina (€77m) and commitments associated with long-term
restructuring plans of €72m (mainly €57m in Spain and €14m in
Hispam). In January-December 2021 it was associated mainly to
€11.0bn of capital gains from the creation of VMO2's JV, the sale
of Telxius towers, the sale of T. Costa Rica and the creation of
fibre vehicles in Brazil and Chile, €1.5bn of commitments
associated with long-term restructuring plans mainly in Spain and
€393m associated with an impairment in Peru.
Free cash flow
amounted to €2,093m in Q4 22, vs €1,177m in Q4 21. In FY 22, free
cash flow amounted to €4,566m, vs €2,648m in FY 21, mainly
reflecting a higher y-o-y organic OIBDA-CapEx (+1.8%), a €1.3bn tax
refund (pre-tax) in Spain in Q4 22, higher dividends received
(mainly VMO2) and higher spectrum paid in 2021.
OIBDA-CapEx
increased by +4.7% y-o-y in Q4 22 and +1.8% y-o-y in FY 22 in
organic terms.
CapEx
declined 24.2% y-o-y in Q4 22 and -19.9% y-o-y in FY 22, mainly
reflecting spectrum acquisitions in 2021 and changes in the
perimeter derived from 2021 corporate transactions. In organic
terms, CapEx increased +2.4% y-o-y in Q4 22 (+4.6% y-o-y in FY 22)
affected by a different CapEx execution.
CapEx/Revenue
stood at 14.8% organic in FY 22.
Working capital
generation amounted to €387m in FY 22, mainly impacted by the
application of the court ruling in Brazil and recurrent seasonal
effects, such as CapEx. Compared to FY 21, working capital was
€624m lower, affected by accrued and financed spectrum in 2021,
impacts from changes in the perimeter and CapEx seasonality,
partially offset application of the court ruling in
Brazil.
Interest
payments
decreased by 18.6% y-o-y in FY 22 impacted by interests from the
tax refund in Spain (+€526m, pre-tax). Excluding this, interest
payments would have grown 16.0% y-o-y on higher debt and interest
rates in Brazilian reals and the appreciation of this currency
against the euro, partly offset by a debt reduction in European
currencies. Effective cost of interest payments over the last 12
months (excluding extraordinaries, mainly the tax refund) stood at
3.86% as of Dec-22 (3.76% ex lease interests).
Dividends received
amounted to €944m in FY 22 mainly from VMO2 in the UK
(€909m).
Tax payments
amounted to €92m in FY 22 (€459m in FY 21) positively impacted by
the tax refund in Spain (€790m). Excluding this effect, tax
payments would have been above y-o-y mainly due to higher payments
in advance in Spain and Brazil in 2022.
Dividends paid to minority shareholders
grew
7.1% y-o-y in FY 22 mainly due to higher dividends paid to
minorities of T. Brasil, partially offset by dividends paid to
minorities of Telxius in 2021 not repeated in 2022.
Lease principal payments
increased 12.0% y-o-y in FY 22 primarily affected by FX revaluation
(mainly BRL) and higher ROU due to corporate
operations.
Funding position
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA |
|
|
|
|
CHANGE IN DEBT |
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
January - December |
|
|
|
|
|
2022 |
2021 |
% Chg |
|
|
|
|
|
|
|
|
|
|
Net financial debt at beginning of period (1) |
26,086 |
|
35,341 |
|
|
|
+ Free Cash Flow including Lease Principal Payments |
(4,566) |
|
(2,648) |
|
|
|
+ Hybrids |
— |
|
65 |
|
|
|
+ Shareholder remuneration (including hybrid coupons) |
1,688 |
|
1,460 |
|
|
|
+ Pre-retirement commitments |
853 |
|
844 |
|
|
|
+ Net financial investments (2) |
1,000 |
|
(9,466) |
|
|
|
+FX & Others (1) |
1,626 |
|
491 |
|
|
|
Net financial debt at end of period (1) |
26,687 |
|
26,086 |
|
2.3 |
|
+ Lease Liabilities |
8,645 |
|
8,080 |
|
|
|
Net Financial Debt plus Lease Liabilities at end of period
(1) |
35,332 |
|
34,166 |
|
|
(1) Net financial debt definition has been modified in Dec-22
mainly excluding the derivatives used as economic hedges of
employee benefits reclassified to “commitments related to employee
benefits”, and it has been applied retrospectively so the figures
are comparable.
(2) In Jan-Dec 2022 includes €1.1bn related with the acquisition of
Oi's mobile assets, €0.3bn with BE-terna acquisition, €0.2bn with
Incremental acquisition and other net factors of €0.5bn, net of
€0.1bn from the sale of El Salvador and €1.0bn from Bluevía FibreCo
in Spain. In Jan-Dec 2021, after the corporate transactions
occurred during the year, it included proceeds of €4.9bn from the
creation of VMO2 JV in the UK, €4.7bn from the sale of Telxius'
& T. Deutschland's towers, and €0.9bn from the sale of Costa
Rica and the creation of InfraCo Chile & FiBrasil, reduced by
the acquisition of Cancom UK&I and Telefónica's share of tax
payment in advance related to Telxius towers transaction (to be
recovered).
Net financial debt
stood at €26,687m as of Dec-22, down €1,957m in Q4, due to positive
free cash flow generation of €2,093m, net financial investment
collections of €840m (mainly related to proceeds from the closing
of Bluevía FibreCo in Spain) and other net factors of €83m
(primarily less value in euros of net debt in foreign currencies
net of the application of the court ruling in Brazil). Factors that
increased net debt were: shareholder remuneration (€855m, including
coupon payments of capital instruments) and labour-related
commitment payments (€204m).
In FY 22, net financial debt increased by €601m despite a positive
free cash flow generation of €4,566m. This was due to (i) net
financial investments of €1,000m (mainly Oi’s mobile assets,
BE-terna and Incremental acquisitions, net of the sale of El
Salvador and the closing of the FibreCos in Colombia and Spain),
ii) shareholder remuneration of €1,688m (including coupon payments
of capital instruments), iii) labour-related commitment payments of
€853m, and, iv) other net factors totaling €1,626m (mainly due to
the higher value in euros of net debt in foreign currencies,
highlighting the impact of the Brazilian real, spectrum renewal in
Colombia and the application of the court ruling in
Brazil).
Including net proceeds from the recovery of Telxius tax payments in
advance, after the acquisition of an additional stake in Telxius,
the impact from the fibre assets acquisition by FibreCo Chile, net
financial debt would have stood at €26.4bn.
Net financial debt including lease liabilities stood at €35,332m as
of Dec-22. In Q4, lease liabilities decreased €518m due to lower
ROU additions than principal payments and FX depreciation (mainly
BRL vs €). In FY22, lease liabilities increased by €565m, due to
the net effect of ROU additions and principal payments and FX
appreciation (mainly BRL vs €).
Telefónica, has raised long term financing in 2022 by €15,009m, of
which €8,849m correspond to re-financing of the Group’s debt
(excluding commercial paper and short-term bank loans) while
€1,740m equivalent correspond to a sustainability-linked term loan
signed at VMO2, €599m equivalent correspond to new financing at
Cornerstone, €61m to FiBrasil and €3,760m equivalent to a
sustainability-linked syndicated facility at the JV formed by
Liberty Global, T. Infra and Infravia. Telefónica financing
activity has allowed the Group to maintain a solid liquidity
position of €21,413m and maintain long debt maturities with
2023-2026 gross debt maturities average at €3.1bn, -58% lower vs
four-year average at Dec-16. Gross debt maturities amount
to €3.5bn in 2023, €2.6bn in 2024, €4.3bn
in 2025 and €2.2bn in 2026. As of Dec-22, the Group has covered
debt maturities over the next three years. The average debt life
stood at
13.1
years.
Financing activities in Q4 22
•In
November, T. Europe launched a green issuance of Undated 6 year non
call Deeply Subordinated Guaranteed Fixed Rate Reset Securities
(hybrid bond) with the subordinated guarantee of Telefónica, S.A.,
(€750m, 6 years reset date) and a tender offer for the purchase of
the existing hybrid bonds with first reset dates in March and
September 2023 (purchase aggregate principal amount of €621m).In
December, T. Europe, B.V redeemed the €129m outstanding of the
existing hybrid bond with first reset date in Mar-23.
•In
November, Bluevia closed a syndicated credit facility for an amount
of €240m and a revolving credit facility for an amount of 120m
(€360m in total) with maturity in December 2027.
•Also
in November, the JV formed by Liberty Global, T. Infra and
Infravia, signed a GBP3,050m sustainability-linked capex facility
and a GBP200m sustainability-linked revolving credit facility with
maturity in Dec-29.
•In
December, Telefónica S.A. signed a €125m bilateral loan with
maximum maturity in Jun-33.
After Dec-22, in Jan-23, T. Europe launched a green hybrid bond
issuance with the subordinated guarantee of Telefónica, S.A.,
(€1,000m, 7.25 years reset date) and a tender offer for the
purchase of existing hybrid bonds with first call date in Sep-23
and Mar-24. T. Europe accepted the purchase in an aggregate
principal amount of €1bn. In Feb-23, Telefónica signed a 10-year
bilateral loan for an amount of €150m.
Telefónica reinforces its position as a leader in ESG financing.
Beyond launching the industry's first green bond in 2019, the
Company stands as the leading telco in terms of issuances in the
capital markets. In 2022, Telefónica has extended its portfolio
with a sustainability-linked syndicated facility,
sustainability-linked committed credit bilateral lines and the
first sustainability-linked bond issued in Brazil. All in all we
have completed ESG financing for an amount
close
to €17bn.
Telefónica, S.A. and its holding companies continued their issuance
activity under the Promissory Notes and Commercial Paper Programmes
(Domestic and European), maintaining an outstanding notional
balance of €500m as of Dec-22.
Undrawn committed credit lines with different credit institutions
amounted to €11,737m as of Dec-22 (€11,434m maturing over twelve
months), which combined with the cash equivalents position and
current financial assets, placed liquidity at
€21,413m.
Sustainability performance
Our sustainability objectives are embedded in our business strategy
and aligned with the
UN
SDGs.
“E” Environmental:
Building a greener future
•Key
targets:
◦Net-zero
emissions
across the value chain
by 2040 (interim: -90% Scope 1 + 2 in core markets and neutralising
10% unabated emissions by 2025). Objectives validated by
SBTi
◦100%
renewables
by 2030
◦Zero-waste
by 2030
•Q4
22 progress:
◦Reducing
emissions via renewable energy and energy efficiency
plans.
82% renewable energy used across the Group; 100% in core markets,
Chile and Peru. Since 2015, we reduced CO2
emissions by 90% (Scopes 1&2) and energy consumption by 7.2%,
despite a 7.4x growth in traffic on our networks. New requirement
for suppliers with largest impact on our Scope 3 emissions (~90%)
to set science-based targets. (SDG #7, #13)
◦Continuing
to roll out solutions that help our customers to
decarbonise:
avoided 81.7m tCO2
emissions in 2022 for customers via our connectivity and services.
Eco Rating is now available across our whole footprint. (SDG 11,
#12, #13)
◦Promoting
the circular economy,
reusing 4.4m hardware units and recycling 98% of waste. (SDG #12,
#13)
•Recognitions
in 2022:
◦CDP;
included on Climate A List for 9th
consecutive year and Supplier Engagement Ranking for
3rd
year running
“S”
Social: Helping society to thrive
•Key
targets:
◦Expand
connectivity
with >90%
rural mobile broadband coverage
in core markets by 2024
◦33%
women directors
by 2024
◦Zero
adjusted gender pay gap3
by 2024, with the ambition of eliminating the pay gap by
2050
•Q4
22 progress:
◦Connecting
communities:
>80% rural MBB cov. in core markets (Brazil >80%, Germany
99%, Spain >94%, UK >99%) as of Dec-22. Affordable access for
O2 Spain customers via NextGenerationEU funds. (SDG #1, #9,
#10)
◦Driving
diversity & inclusion
through commitments: double the number of employees with
disabilities in the workforce by 2024 and adhere to the UN Women’s
Empowerment Principles. (SDG #5, #8)
◦Talent
attraction & retention:
Group eNPS +2 points y-o-y to 69 and >16k employees in Spain
receiving training as part of the largest reskilling programme in
Europe. (SDG #4, #8)
•Recognitions
in 2022:
◦World
Benchmarking Alliance:
#1 worldwide in Digital Inclusion Benchmark
◦Bloomberg
Gender Equality Index:
included for 6th consecutive year; 1 of only 17 telcos (also Vivo
and T. DE)
“G” Governance: Leading by
example
•Key
targets:
◦Zero
tolerance of corruption
◦Target
raised: 30-35% financing4
linked to sustainability
by 2024
◦Gender
parity5
in top governing bodies by 2030
3
Adjusted pay gap: equal pay for jobs of
equal value (+/-1%)
4
Financing includes balance-sheet debt,
hybrids and undrawn committed credit lines
5
Parity
defined as not less than 40% of each gender
represented
•Q4
22 progress:
◦Ethical&compliant,
0 corruption cases; >91k employees trained in Responsible
Business Principles. (SDG #16)
◦Leading
ESG issuer in the sector:
hybrids green bonds: €750m (Nov-22) and €1bn (Feb-23), leading to
€17bn
◦Shoring
up our
supply chain management;
>18k audits conducted during FY 22
•Recognitions
in 2022:
◦Ranking
Digital Rights;
#1 in sector for 3rd consecutive year, leading across all 3
categories
|
|
|
|
|
|
|
|
|
|
|
|
|
ESG RANKINGS & RECOGNITIONS |
|
|
|
|
TEF performance |
Detail |
Date of last rating change |
|
|
|
|
|
CDP |
Climate A list |
9th consecutive year |
Dec-22 |
|
Supplier Engagement Leader |
3rd consecutive year |
Dec-22 |
|
World Benchmarking Alliance |
#1 worldwide |
Digital Inclusion Benchmark |
Dec-21 |
|
#1 worldwide in sector |
Social Transformation Baseline Assessment |
Jan-22 |
|
Bloomberg Gender Equality Index |
1 of 17 telcos included worldwide |
6th consecutive year |
Dec-22 |
|
Ranking Digital Rights |
#1 in sector |
Leaders across all categories |
Dec-22 |
|
|
|
|
|
|
|
|
|
|
|
ESG ANALYST's RATINGS |
|
|
|
|
|
TEF rating |
Relative positioning |
Date of last rating change |
|
|
|
|
|
FTSE Russell |
4.4/5 |
1st in sector; Member of FTSE4Good |
Dec-22 |
|
ISS ESG Corporate Rating |
B- |
1st decile (sector) |
Sep-22 |
|
MSCI |
A |
Average in sector |
Sep-22 |
|
S&P DJSI |
86/100 |
Top 10 in sector; Member of DJSI Europe |
Dec-22 |
|
Sustainalytics |
15.2 (low risk) |
6th / 223 (sector) |
Jan-23 |
|
Vigeo Eiris |
67/100 |
2nd / 33 (sector) |
Oct-21 |
|
|
|
|
|
Performance by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA |
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
Reported |
Organic |
|
2022 |
|
Reported |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
39,993 |
|
1.8 |
|
|
|
10,200 |
|
5.4 |
|
|
|
Telefónica España |
|
12,497 |
|
0.6 |
|
0.6 |
|
|
3,214 |
|
0.2 |
|
0.2 |
|
|
Telefónica Deutschland |
|
8,224 |
|
5.9 |
|
5.9 |
|
|
2,190 |
|
6.6 |
|
6.6 |
|
|
Telefónica Brasil |
|
8,870 |
|
28.4 |
|
9.1 |
|
|
2,361 |
|
31.0 |
|
10.1 |
|
|
Telefónica Hispam |
|
9,141 |
|
9.3 |
|
3.7 |
|
|
2,105 |
|
(8.2) |
|
2.8 |
|
|
Other companies & eliminations |
|
1,261 |
|
5.6 |
|
25.5 |
|
|
331 |
|
4.2 |
|
18.1 |
|
|
Revenue (aggregating 50% VMO2 JV)
|
|
45,978 |
|
|
4.0 |
|
|
11,751 |
|
|
3.9 |
|
|
VMO2 JV (100%) |
|
12,155 |
|
0.9 |
|
(0.01) |
|
|
3,141 |
|
(1.7) |
|
0.4 |
|
|
OIBDA |
|
12,852 |
|
(41.5) |
|
|
|
3,259 |
|
139.2 |
|
|
|
Telefónica España |
|
4,588 |
|
35.9 |
|
(3.3) |
|
|
1,184 |
|
c.s. |
(2.1) |
|
|
Telefónica Deutschland |
|
2,558 |
|
5.5 |
|
5.2 |
|
|
665 |
|
5.7 |
|
6.6 |
|
|
Telefónica Brasil |
|
3,732 |
|
18.9 |
|
7.2 |
|
|
1,030 |
|
26.9 |
|
6.6 |
|
|
Telefónica Hispam |
|
1,958 |
|
14.0 |
|
2.7 |
|
|
363 |
|
n.s. |
(1.5) |
|
|
Other companies & eliminations |
|
16 |
|
(99.8) |
|
c.s. |
|
17 |
|
n.s. |
c.s. |
|
OIBDA (aggregating 50% VMO2 JV)
|
|
15,066 |
|
|
3.0 |
|
|
3,802 |
|
|
3.5 |
|
|
VMO2 JV (100%) |
|
4,401 |
|
5.3 |
|
6.3 |
|
|
1,081 |
|
4.3 |
|
9.9 |
|
|
CapEx |
|
5,819 |
|
(19.9) |
|
|
|
1,798 |
|
(24.2) |
|
|
|
Telefónica España |
|
1,550 |
|
(14.6) |
|
5.9 |
|
|
505 |
|
12.3 |
|
16.8 |
|
|
Telefónica Deutschland |
|
1,209 |
|
(5.8) |
|
(5.8) |
|
|
307 |
|
(35.1) |
|
(35.1) |
|
|
Telefónica Brasil |
|
1,795 |
|
(13.2) |
|
9.7 |
|
|
498 |
|
(53.4) |
|
6.4 |
|
|
Telefónica Hispam |
|
1,058 |
|
8.1 |
|
3.6 |
|
|
399 |
|
23.3 |
|
29.1 |
|
|
Other companies & eliminations |
|
207 |
|
10.3 |
|
45.2 |
|
|
89 |
|
49.5 |
|
61.0 |
|
|
CapEx (aggregating 50% VMO2 JV)
|
|
7,172 |
|
|
4.6 |
|
|
2,158 |
|
20.8 |
|
2.4 |
|
|
VMO2 JV (100%) |
|
2,707 |
|
(6.9) |
|
4.3 |
|
|
720 |
|
(0.6) |
|
(3.0) |
|
|
Spectrum |
|
173 |
|
(89.8) |
|
|
|
34 |
|
(95.3) |
|
|
|
Spectrum (aggregating 50% VMO2 JV) |
|
173 |
|
|
(89.0) |
|
|
34 |
|
n.s. |
(95.4) |
|
|
OIBDA-CapEx |
|
7,033 |
|
(52.2) |
|
|
|
1,460 |
|
c.s. |
|
|
Telefónica España |
|
3,038 |
|
94.5 |
|
(7.3) |
|
|
679 |
|
c.s. |
(11.9) |
|
|
Telefónica Deutschland |
|
1,349 |
|
18.3 |
|
17.4 |
|
|
357 |
|
130.0 |
|
130.5 |
|
|
Telefónica Brasil |
|
1,938 |
|
81.2 |
|
5.1 |
|
|
533 |
|
c.s. |
6.8 |
|
|
Telefónica Hispam |
|
900 |
|
21.6 |
|
2.0 |
|
|
-37 |
|
(85.1) |
|
(52.8) |
|
|
Other companies & eliminations |
|
(191) |
|
c.s. |
2.3 |
|
|
(73) |
|
24.4 |
|
25.6 |
|
|
OIBDA-CapEx (aggregating 50% VMO2 JV)
|
|
7,894 |
|
|
1.8 |
|
|
1,644 |
|
(84.3) |
|
4.7 |
|
|
VMO2 JV (100%) |
|
1,694 |
|
33.3 |
|
8.8 |
|
|
360 |
|
15.8 |
|
30.8 |
|
- Reconciliation included in the excel spreadsheets
- OIBDA and OI are presented before brand fees and management
fees.
- Organic criteria:
Includes 50% of VMO2 JV results. Assumes constant exchange rates of
2021 (average in 2021). Excludes the contribution to growth from T.
Argentina and T. Venezuela. Considers constant perimeter of
consolidation and does not include capital gains/losses from the
sale of companies, for significant impacts. Does not include
write-offs, material non-recurring impacts and restructuring costs.
CapEx excludes investments in spectrum.
TELEFÓNICA ESPAÑA
(y-o-y changes in organic terms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27% |
of total Telefónica FY 22 revenue
|
|
30% |
of total Telefónica FY 22 OIBDA |
|
38% |
of total Telefónica FY 22 OIBDA-CapEx |
|
Weights calculated with revenue, OIBDA and CapEx (ex spectrum) with
50% of the VMO2 JV
|
Key messages
•Quarterly
net adds in fixed broadband and mobile contract, churn reduced to
2015 levels
•Return
to y-o-y service revenue growth in Q4 22 for the first time in 3
years
•Continued
improvement in y-o-y OIBDA in Q4 22
Operating performance
T. España's
result confirmed the recovery path seen throughout 2022. In Q4 22,
service revenues grew y-o-y again for the first time since Q4 19,
and OIBDA improved its y-o-y evolution, thanks to the good
commercial performance and despite a complex macro environment. In
an inflationary context, the sector remained rational, and the main
operators have announced upward tariff revisions for 2023. In this
regard, T. España has applied an average increase of 6.8% to its
convergent and stand-alone tariffs, effective from
mid-January.
Telefónica maintains its commitment to
sustainability
with actions to support the circular economy through the program
for the purchase of used devices (Buyback), the commitment to
attract and retain diverse talent with the incorporation of up to
200 people with disabilities, or affordable access to connectivity
and digital inclusion aimed at vulnerable groups.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA ESPAÑA |
|
|
|
|
|
|
|
|
|
|
|
|
ACCESSES |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Accesses |
37,144 |
|
36,881 |
|
36,809 |
|
36,461 |
|
|
36,717 |
|
36,685 |
|
36,779 |
|
36,839 |
|
|
1.0 |
|
|
Fixed telephony |
8,617 |
|
8,523 |
|
8,438 |
|
8,376 |
|
|
8,261 |
|
8,208 |
|
8,186 |
|
8,102 |
|
|
(3.3) |
|
|
Broadband |
5,911 |
|
5,889 |
|
5,874 |
|
5,875 |
|
|
5,846 |
|
5,851 |
|
5,854 |
|
5,855 |
|
|
(0.3) |
|
|
FTTH |
4,671 |
|
4,727 |
|
4,775 |
|
4,848 |
|
|
4,875 |
|
4,937 |
|
4,981 |
|
5,042 |
|
|
4.0 |
|
|
Mobile |
18,711 |
|
18,658 |
|
18,733 |
|
18,485 |
|
|
18,955 |
|
19,028 |
|
19,177 |
|
19,347 |
|
|
4.7 |
|
|
Prepay |
840 |
|
806 |
|
784 |
|
753 |
|
|
711 |
|
715 |
|
758 |
|
796 |
|
|
5.8 |
|
|
Contract |
15,260 |
|
15,186 |
|
15,195 |
|
15,211 |
|
|
15,139 |
|
15,083 |
|
15,086 |
|
15,100 |
|
|
(0.7) |
|
|
IoT |
2,611 |
|
2,666 |
|
2,755 |
|
2,522 |
|
|
3,105 |
|
3,230 |
|
3,334 |
|
3,452 |
|
|
36.9 |
|
|
Pay TV |
3,895 |
|
3,801 |
|
3,756 |
|
3,716 |
|
|
3,647 |
|
3,589 |
|
3,553 |
|
3,526 |
|
|
(5.1) |
|
|
Wholesale Accesses |
3,677 |
|
3,658 |
|
3,679 |
|
3,674 |
|
|
3,684 |
|
3,663 |
|
3,669 |
|
3,654 |
|
|
(0.6) |
|
|
FTTH |
2,708 |
|
2,802 |
|
2,907 |
|
2,982 |
|
|
3,065 |
|
3,110 |
|
3,169 |
|
3,206 |
|
|
7.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accesses |
40,820 |
|
40,539 |
|
40,488 |
|
40,135 |
|
|
40,401 |
|
40,347 |
|
40,448 |
|
40,493 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Accesses in March 2022 include an update of 500k IoT accesses
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OWN
UBB NETWORK COVERAGE |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UBB Premises passed (FTTH) |
25,651 |
26,135 |
26,520 |
26,903 |
|
27,203 |
27,524 |
27,788 |
28,089 |
|
4.4 |
|
Uptake FTTH |
29 |
% |
29 |
% |
29 |
% |
29 |
% |
|
29 |
% |
29 |
% |
29 |
% |
29 |
% |
|
0.3 p.p. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- FTTH uptake includes retail accesses and wholesale accesses
connected to the FTTH network.
Accesses
grew 1% y-o-y, with quarterly net adds in fixed broadband (1k) for
the third consecutive quarter, mobile contract adds (14k), and
better trend in TV (-27k, vs -36k in Q3 22).
Fibre
(+99k accesses; +62k retail) now accounts for 88% of broadband
customers out of a coverage of 28.1m PPs as of December (uptake of
29%).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONVERGENT KPIs |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures |
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convergent clients (thousands) |
4,781.6 |
4,725.9 |
4,682.7 |
4,649.8 |
|
4,608.3 |
4,581.6 |
4,555.8 |
4,546.4 |
|
(2.2) |
|
Convergent ARPU (EUR) (cumulative YTD) |
89.7 |
88.5 |
88.9 |
89.2 |
|
91.1 |
90.7 |
90.5 |
90.4 |
|
1.3 |
|
Convergent churn (cumulative YTD) |
1.5 |
% |
1.5 |
% |
1.4 |
% |
1.4 |
% |
|
1.3 |
% |
1.2 |
% |
1.2 |
% |
1.2 |
% |
|
(0.3 p.p.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Convergent include Consumer, SOHO and SMEs clients.
Convergent customers
(-2% y-o-y) fell by 9k in Q4 22, confirming an improving trend
thanks to the "miMovistar" portfolio, which continues to perform
well and now accounts for more than 25% of convergent customers,
contributing to the reduction in churn and the increase in accesses
net adds. ARPU in Q4 22 reached €90.3 (stable y-o-y), while churn
dropped significantly by -0.4 p.p. y-o-y to 1.0%, the best figure
since Q1 15. ARPU in FY 22 stood at €90.4 (+1.3%
y-o-y).
Financial performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA ESPAÑA |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
Reported |
Organic |
|
2022 |
2021 |
|
Reported |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
12,497 |
12,417 |
|
0.6 |
0.6 |
|
3,214 |
3,207 |
|
0.2 |
0.2 |
|
Mobile handset revenue |
|
548 |
399 |
|
37.4 |
37.4 |
|
134 |
146 |
|
(8.0) |
(8.0) |
|
Revenues ex-mobile handset revenue |
|
11,948 |
12,017 |
|
(0.6) |
(0.6) |
|
3,079 |
3,061 |
|
0.6 |
0.6 |
|
Retail |
|
9,662 |
9,699 |
|
(0.4) |
(0.4) |
|
2,501 |
2,479 |
|
0.9 |
0.9 |
|
Wholesale and Other |
|
2,286 |
2,318 |
|
(1.4) |
(1.4) |
|
578 |
582 |
|
(0.6) |
(0.6) |
|
Operating income before D&A (OIBDA) |
|
4,588 |
3,377 |
|
35.9 |
(3.3) |
|
1,184 |
(158) |
|
c.s. |
(2.1) |
|
OIBDA Margin |
|
36.7 |
% |
27.2 |
% |
|
n.s. |
(1.5 p.p.) |
|
36.8 |
% |
n.s. |
|
n.s. |
(0.9 p.p.) |
|
CapEx |
|
1,550 |
1,815 |
|
(14.6) |
5.9 |
|
505 |
449 |
|
12.3 |
16.8 |
|
Spectrum |
|
— |
352 |
|
— |
— |
|
— |
17 |
|
— |
— |
|
OIBDA-CapEx |
|
3,038 |
1,562 |
|
94.5 |
(7.3) |
|
679 |
(607) |
|
c.s. |
(11.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: - OIBDA before management and brand fees.
Revenue
grew for the seventh consecutive quarter (+0.2% vs Q4 21; +0.6% vs
FY 21) highlighting the return to y-o-y growth in service revenues
(+0.6% in Q4 22, -0.6% in FY 22). This better sequential evolution
is driven by B2B revenues (both communications and IT), the
improvement in commercial activity and the higher contribution from
new digital businesses in B2C, and despite the impact of lower
wholesale football revenues since mid Q3 22. On the other hand,
handset revenues declined 8.0% y-o-y in Q4 22, due to less
aggressive Black Friday and Christmas campaigns compared to 2021,
although they grew 37.4% y-o-y in FY 22.
OIBDA
declined 2.1% y-o-y in Q4 22 (-3.3% in FY 22) and improved 0.7 p.p.
vs. Q3 22, mainly due to the deflation of the new "La Liga" cycle,
lower energy costs and efficiencies derived from the redundancy
plan (€46m savings in Q4 22) and network transformation among
others. OIBDA margin (organic) stood at 38.6% in Q4 22 (-0.9 p.p.
y-o-y) and at 37.2% in FY 22 (-1.5 p.p. y-o-y), also reflecting the
higher weight of lower margin revenues.
Q4 22 reported OIBDA was impacted by a €57m provision (on
regulatory changes effective in January 2023 affecting to existing
redundancy plans).
CapEx
(+5.9% y-o-y in FY 22) remained focused on FTTH and 5G deployment
and
OIBDA-CapEx
declined 7.3% y-o-y in the year, leaving the operating cash margin
at 24.8% (organic).
TELEFÓNICA DEUTSCHLAND
(y-o-y changes in organic terms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18% |
of total Telefónica FY 22 revenue
|
|
17% |
of total Telefónica FY 22 OIBDA |
|
17% |
of total Telefónica FY 22 OIBDA-CapEx |
|
Weights calculated with revenue, OIBDA and CapEx (ex spectrum) with
50% of the VMO2 JV
|
Key messages
•Solid
commercial traction, strong own brand momentum, +264k contract net
adds in Q4 22
•Continued
healthy revenue & OIBDA growth leveraging mobile strength;
further pursuing growth path
•5G
pop coverage >80% within unchanged CapEx envelope;
over-achieving initial target
Operating performance
Telefónica Deutschland
delivered another quarter of robust commercial traction leveraging
the ‘very good’ rating in the renowned connect magazine’s annual
network test for the third time in a row. Consequently, the Company
achieved sustained financial momentum across the year, with healthy
revenue and OIBDA growth in all quarters. The Company successfully
completed its 3-year ‘Investment for Growth’ programme within the
planned CapEx envelope, achieving >80% of 5G pop coverage at
year-end 2022 as well as complying with the coverage obligations of
the German regulator. T. Deutschland is pursuing a ‘more-for-more’
pricing strategy across brands and portfolios backed by its widely
acknowledged network, products and services quality and extended
ESG leadership. In Jan-23 the company announced its revamped
O2
Mobile (launch Apr-23) and Blau (launch Feb-23) portfolios
including higher data volumes and/or higher speeds while being on
average priced at around 10% higher price points.
In parallel, T. Deutschland extended its ESG leadership, ranked #3
in the telco sector by Sustainalytics and included in the Bloomberg
Gender Equality Index for 4th consecutive year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA DEUTSCHLAND |
|
|
|
|
|
|
|
|
|
|
|
|
ACCESSES |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Accesses |
48,942 |
|
49,485 |
|
49,838 |
|
50,219 |
|
|
50,419 |
|
51,209 |
|
51,524 |
|
48,892 |
|
|
(2.6) |
|
|
Fixed telephony accesses |
2,173 |
|
2,172 |
|
2,173 |
|
2,180 |
|
|
2,169 |
|
2,174 |
|
2,194 |
|
2,212 |
|
|
1.5 |
|
|
Broadband |
2,254 |
|
2,253 |
|
2,255 |
|
2,262 |
|
|
2,252 |
|
2,257 |
|
2,276 |
|
2,294 |
|
|
1.4 |
|
|
UBB |
1,809 |
|
1,823 |
|
1,838 |
|
1,857 |
|
|
1,864 |
|
1,881 |
|
1,911 |
|
1,939 |
|
|
4.4 |
|
|
Mobile accesses |
44,428 |
|
44,975 |
|
45,325 |
|
45,694 |
|
|
45,915 |
|
46,696 |
|
46,974 |
|
44,307 |
|
|
(3.0) |
|
|
Prepay (1) |
19,175 |
|
19,266 |
|
19,161 |
|
18,973 |
|
|
18,873 |
|
19,244 |
|
19,186 |
|
16,275 |
|
|
(14.2) |
|
|
Contract |
23,801 |
|
24,175 |
|
24,590 |
|
25,108 |
|
|
25,395 |
|
25,769 |
|
26,073 |
|
26,336 |
|
|
4.9 |
|
|
IoT |
1,452 |
|
1,534 |
|
1,574 |
|
1,613 |
|
|
1,647 |
|
1,684 |
|
1,716 |
|
1,696 |
|
|
5.1 |
|
|
Total Accesses |
48,942 |
|
49,485 |
|
49,838 |
|
50,219 |
|
|
50,419 |
|
51,209 |
|
51,524 |
|
48,892 |
|
|
(2.6) |
|
(1) Include in Dec-22, a revenue-neutral technical base adjustment
of 2.5m prepaid accesses (introduction of a stricter active SIM
card definition).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATIONAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures |
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile churn (quarterly) |
1.6 |
% |
1.4 |
% |
1.7 |
% |
1.7 |
% |
|
1.7 |
% |
1.3 |
% |
1.9 |
% |
3.9 |
% |
|
2.2 p.p. |
|
Contract |
1.3 |
% |
1.0 |
% |
1.2 |
% |
1.2 |
% |
|
1.4 |
% |
1.1 |
% |
1.4 |
% |
1.5 |
% |
|
0.3 p.p. |
|
Mobile churn (cumulative YTD) |
1.6 |
% |
1.5 |
% |
1.6 |
% |
1.6 |
% |
|
1.7 |
% |
1.5 |
% |
1.6 |
% |
2.2 |
% |
|
0.6 p.p. |
|
Contract |
1.3 |
% |
1.2 |
% |
1.2 |
% |
1.2 |
% |
|
1.4 |
% |
1.2 |
% |
1.3 |
% |
1.3 |
% |
|
0.1 p.p. |
|
Mobile ARPU (EUR) (cumulative YTD) |
9.7 |
9.9 |
10.0 |
10.0 |
|
9.7 |
9.8 |
10.0 |
10.1 |
|
1.5 |
|
|
Contract |
13.2 |
13.4 |
13.5 |
13.5 |
|
12.8 |
12.9 |
13.0 |
13.3 |
|
(1.5) |
|
|
|
|
|
|
|
|
|
|
— |
|
|
Notes:
- ARPU: monthly average revenue divided by the monthly average
accesses of the period.
- Accesses include, in Dec-22, a revenue-neutral technical base
adjustment of 2.5m prepaid accesses (introduction of a stricter
active SIM card definition).
Mobile contract
maintained its growth momentum in Q4 22, delivering +264 net adds
(+1,228k in FY 22), with high O2
brand’s appeal driving O2
tariff portfolio’s gross add momentum in the market. Contribution
of partner brands continued to be solid. Churn in the
O2
contract base stood at low rates of 1.2% in Q4 22 and 1.1% in FY
22, +0.2 p.p. y-o-y each leveraging network parity and commercial
success, while it remained somewhat impacted by the anticipated
temporary effects of the European Electronic Communications Code
(EECC).
O2
contract ARPU
was broadly stable in Q4 22 y-o-y and improved sequentially (-0.3%
y-o-y; -1.3% y-o-y in Q3 22;
-0.7% y-o-y
in FY 22) supported by the popularity of high value tariffs,
slightly offset by the accelerated MTR glide path.
Mobile prepaid
performance was characterized by a combination of a revenue neutral
technical base adjustment (-2,535k
accesses)
in Q4 22 and the ongoing German market trend of prepaid to postpaid
migration. As a result, mobile prepaid base registered -2,968k net
disconnections in FY 22 (-2,911k in Q4 22).
Fixed broadband
recorded +18k net adds in Q4 22 (FY 22: +32k), with the success of
cable as a main driver, while the 4G/5G based fixed-mobile
substitution (FMS) offer remained popular within T. Deutschland’s
technology agnostic O2
my Home tariff portfolio.
Financial performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA DEUTSCHLAND |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
Reported |
Organic |
|
2022 |
2021 |
|
Reported |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
8,224 |
7,765 |
|
5.9 |
5.9 |
|
2,190 |
2,055 |
|
6.6 |
6.6 |
|
Mobile Business |
|
7,394 |
6,942 |
|
6.5 |
6.5 |
|
1,978 |
1,840 |
|
7.5 |
7.5 |
|
Handset revenue |
|
1,652 |
1,450 |
|
13.9 |
13.9 |
|
462 |
446 |
|
3.4 |
3.4 |
|
Fixed Business |
|
806 |
814 |
|
(1.0) |
(1.0) |
|
203 |
211 |
|
(3.7) |
(3.7) |
|
Operating income before D&A (OIBDA) |
|
2,558 |
2,424 |
|
5.5 |
5.2 |
|
665 |
629 |
|
5.7 |
6.6 |
|
OIBDA Margin |
|
31.1 |
% |
31.2 |
% |
|
(0.1 |
p.p.) |
(0.2 |
p.p.) |
|
30.4 |
% |
30.6 |
% |
|
(0.3 |
p.p.) |
— |
p.p. |
|
CapEx |
|
1,209 |
1,284 |
|
(5.8) |
(5.8) |
|
307 |
474 |
|
(35.1) |
(35.1) |
|
Spectrum |
|
— |
— |
|
— |
— |
|
— |
— |
|
— |
— |
|
OIBDA-CapEx |
|
1,349 |
1,140 |
|
18.3 |
17.4 |
|
357 |
155 |
|
130.0 |
130.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
- OIBDA before management and brand fees.
Revenue
growth continued to accelerate (+6.6%
y-o-y in Q4 22, +5.9% y-o-y in FY 22) driven by sustained mobile
revenue momentum (+7.5% y-o-y in Q4 22, +6.5% y-o-y in FY 22)
fuelled by the commercial success of the O2
tariff portfolio and a solid contribution from partners, more than
offsetting the negative impact from the MTR glidepath. Handset
sales had a record year (+3.4% y-o-y in Q4 22, +13.9% y-o-y in
FY22) fuelled by ongoing customer demand, availability of devices,
and attractive handset financing options.
OIBDA
growth accelerated to +6.6% y-o-y in Q4 22 (+5.2% y-o-y in FY 22)
with continued own brand momentum driving improved operational
leverage mainly in mobile while handset margins were broadly
neutral.
FY 22 OIBDA also benefited from further efficiency gains as well as
some support from roaming recovery mainly in H1, offsetting the
anticipated increase in energy costs.
OIBDA margin
remained broadly stable at 30.4% in Q4 and 31.1% in FY
22.
T. Deutschland successfully completed its 3-year ‘investment for
growth’ programme. After prior year’s investment peak, FY 22
CapEx
was down 5.8% y-o-y with a CapEx/Revenue of 14.7%. On the back of
continued roll-out efficiencies, the Company delivered strong
progress both in 5G roll-out and network modernization, including
the planned swap of its core network to Ericsson technology. T.
Deutschland’s 5G pop coverage stood at >80% at year end,
significantly over-achieving its initial target, aiming for ~90%
coverage by year-end 2023 and well on track to offer nationwide
5G-coverage by no later than year-end 2025.
As a result,
OIBDA-CapEx
was up +17.4% y-o-y in FY 22 and
OIBDA-CapEx/Revenue
reached 16.4%, +1.6 p.p. y-o-y.
Virgin Media - O2 UK
(100% of VMO2, y-o-y changes in organic terms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13% |
of total Telefónica FY 22 revenue
|
|
15% |
of total Telefónica FY 22 OIBDA |
|
10% |
of total Telefónica FY 22 OIBDA-CapEx |
|
Weights calculated with revenue, OIBDA and CapEx (ex. spectrum)
with 50% of the VMO2 JV
|
Key messages
•Expanding
our fixed network by surpassing 500k PPs in FY 22, posting the
strongest deployment in Q4 22 (+188k)
•Q4
22 OIBDA growth accelerated to +9.9% y-o-y, underpinned by the
realisation of synergies and cost efficiencies
•FY
22 synergies target of 30% exceeded and on-track to deliver 50% of
the annualised £540m run rate by YE 23
Operating performance
Virgin Media O2
(VMO2) has delivered its set guidance against a challenging
macroeconomic backdrop and made strong strategic and operational
progress throughout the year. The Company introduced new products,
like TV Stream and Switch up and continues to drive fixed mobile
convergence with its VOLT product. With the aim to continue to
invest in the best technology, VMO2 has announced a 13.8% fixed
price increase from April 2023 and also that it is linking its
future pricing strategy to inflation from April 2024 to provide
more clarity to consumers. VMO2 has exceeded the delivery of the
planned synergies and OIBDA growth in Q4 22 accelerated to 9.9%
y-o-y.
The fixed footprint reached 16.1m PPs, meeting our full year build
targets, with an acceleration of rollout in Q4 22, passing 188k
PPs.
In mobile, it expanded 5G services to >1,600 towns and cities,
on-track to deliver 5G services to 50% of the UK population in
2023.
VMO2 progressed on delivering its
“Better Connections Plan” ESG strategy.
In December, it became one of the first UK businesses to achieve
the “Advancing level” of the Carbon Trust’s Route to NetZero
Standard. On its commitment to a circular economy, the “Time After
Time” fund was launched with the environmental charity, Hubbub, to
fund eco projects that tackle e-waste and help old devices to be
reused. For customers, VMO2 continued to reduce the cost of the
Essential Broadband social tariff and introduced a new, faster
54Mbps tier for just £20 per month.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VMO2 ACCESSES |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Accesses (1,2) |
44,293 |
|
44,991 |
|
45,550 |
|
46,021 |
|
|
46,178 |
|
46,245 |
|
46,602 |
|
46,927 |
|
|
2.0 |
|
|
Broadband |
5,488 |
|
5,524 |
|
5,566 |
|
5,627 |
|
|
5,626 |
|
5,620 |
|
5,639 |
|
5,662 |
|
|
0.6 |
|
|
UBB |
5,459 |
|
5,494 |
|
5,536 |
|
5,597 |
|
|
5,596 |
|
5,612 |
|
5,631 |
|
5,654 |
|
|
1.0 |
|
|
Mobile accesses |
30,618 |
|
31,358 |
|
31,865 |
|
32,277 |
|
|
32,595 |
|
33,095 |
|
33,508 |
|
33,831 |
|
|
4.8 |
|
|
Prepay |
8,199 |
|
8,363 |
|
8,284 |
|
8,119 |
|
|
8,062 |
|
8,134 |
|
8,170 |
|
7,968 |
|
|
(1.9) |
|
|
Contract |
15,636 |
|
15,701 |
|
15,809 |
|
15,938 |
|
|
15,949 |
|
15,962 |
|
16,008 |
|
16,088 |
|
|
0.9 |
|
|
IoT |
6,782 |
|
7,294 |
|
7,771 |
|
8,220 |
|
|
8,584 |
|
8,999 |
|
9,330 |
|
9,776 |
|
|
18.9 |
|
|
Wholesale Accesses |
9,350 |
|
9,594 |
|
9,774 |
|
9,967 |
|
|
10,127 |
|
10,431 |
|
10,647 |
|
10,819 |
|
|
8.5 |
|
|
Total Accesses (1,2) |
53,643 |
|
54,585 |
|
55,323 |
|
55,988 |
|
|
56,304 |
|
56,676 |
|
57,249 |
|
57,745 |
|
|
3.1 |
|
Notes:
(1) Includes fixed telephony and Pay TV accesses. Accesses prior to
1st June 2021 are based on proforma data which give effect to the
combination of Virgin Media UK and O2 UK as if it had occurred on
1st January 2020
(2) Q2 22 includes a -282k voice and -22k broadband legacy base
adjustment relating to nil revenue connections
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATIONAL DATA |
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
UBB Premises passed |
15,387 |
15,476 |
15,546 |
15,650 |
|
15,750 |
15,863 |
15,980 |
16,145 |
|
3.2 |
|
The
Contract mobile base
grew by +79k in Q4 22 (+47k in Q3 22; +150k in FY 22) and
O2 mobile contract churn
was stable y-o-y and remained at market low levels of just 0.9% in
Q4 22.
IoT accesses
grew by +446k in Q4 22
(+1,556k in FY 22).
Q4 fixed broadband net adds
totalled +23k (+57k in FY 22), driven by the demand for fast and
reliable connectivity.
Our flagship converged Volt bundles continued to perform well with
1.3m customers now taking the products in a little over one year
since the original launch.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VMO2 CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
Reported |
Organic |
|
2022 |
2021 |
|
Reported |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
12,155 |
12,046 |
|
0.9 |
(0.01) |
|
3,141 |
3,196 |
|
(1.7) |
0.4 |
|
Mobile revenue |
|
6,938 |
6,762 |
|
2.6 |
1.7 |
|
1,854 |
1,862 |
|
(0.4) |
1.8 |
|
Handset revenue |
|
1,894 |
1,895 |
|
— |
(0.9) |
|
582 |
620 |
|
(6.1) |
(4.6) |
|
Fixed Business |
|
4,639 |
4,754 |
|
(2.4) |
(3.4) |
|
1,120 |
1,194 |
|
(6.2) |
(4.2) |
|
Consumer Fixed |
|
3,988 |
4,012 |
|
(0.6) |
(1.5) |
|
956 |
1,010 |
|
(5.3) |
(3.1) |
|
Subscription |
|
3,907 |
3,921 |
|
(0.4) |
(1.3) |
|
939 |
987 |
|
(4.8) |
(2.6) |
|
Other |
|
81 |
91 |
|
(11.1) |
(11.8) |
|
17 |
23 |
|
(25.8) |
(23.6) |
|
B2B Fixed |
|
651 |
742 |
|
(12.3) |
(13.3) |
|
164 |
184 |
|
(11.2) |
(9.8) |
|
Other |
|
578 |
529 |
|
9.2 |
8.0 |
|
168 |
141 |
|
19.5 |
21.3 |
|
Operating income before D&A (OIBDA) |
|
4,401 |
4,178 |
|
5.3 |
6.3 |
|
1,081 |
1,036 |
|
4.3 |
9.9 |
|
OIBDA Margin |
|
36.2 |
% |
34.7 |
% |
|
1.5 p.p. |
2.2 p.p. |
|
34.4 |
% |
32.4 |
% |
|
2.0 p.p. |
3.1 p.p. |
|
CapEx |
|
2,707 |
2,908 |
|
(6.9) |
4.3 |
|
720 |
725 |
|
(0.6) |
(3.0) |
|
Spectrum |
|
— |
521 |
|
— |
|
— |
|
|
— |
2 |
|
— |
|
— |
|
|
OIBDA-CapEx |
|
1,694 |
1,270 |
|
33.3 |
8.8 |
|
360 |
311 |
|
15.8 |
30.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Organic OIBDA and OIBDA margin y-o-y calculated in line with
Telefonica criteria.
- Includes VMO2 proforma data which give effect to the combination
of Virgin Media UK and O2 UK as if it had occurred on 1st January
2020 and pushes back purchase price accounting, policy alignment
and transaction adjustments to this date.
Financial performance
Revenue
grew by 0.4% y-o-y in Q4 22, reverting the Q3 y-o-y decline (-0.6%)
and flat y-o-y in FY 22, mainly due to a mobile revenue increase of
+1.8% y-o-y in Q4 22 (+1.7% y-o-y in FY 22) supported by an
increase in service revenue driven by price rises in April and a
growing customer base. Hardware revenue declined by 4.6% in Q4
partly offsetting the good service revenue growth. Fixed revenue
declined -4.2% y-o-y in Q4 (-3.4% y-o-y in FY 22) due to a change
in consumer customer mix alongside continued decline in B2B
Fixed.
OIBDA
grew by 9.9% y-o-y in Q4 22 (+8.1% y-o-y in Q3; +6.3% y-o-y FY 22),
with key drivers of growth being the realisation of synergies and
cost efficiencies which were partially offset by increased energy
costs.
OIBDA margin
improved by +3.1 p.p. y-o-y in Q4 22 to 34.4% (36.2% in FY 22; +2.2
p.p. y-o-y).
CapEx
up 4.3% y-o-y in FY 22 as the Company continued to invest in its
connectivity infrastructure to deliver future growth and network
expansion. As a result, in FY 22,
OIBDA-CapEx
increased 8.8% y-o-y with
OIBDA-CapEx/Revenue
up 1.4 p.p y-o-y to 13.9%.
TELEFÓNICA BRASIL
(y-o-y changes in organic terms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19% |
of total Telefónica FY 22 revenue
|
|
25% |
of total Telefónica FY 22 OIBDA |
|
24% |
of total Telefónica FY 22 OIBDA-CapEx |
|
Weights calculated with revenue, OIBDA and CapEx (ex. spectrum)
with 50% of the VMO2 JV
|
Key Messages
•Vivo
continues to strengthen its leadership position in contract and
FTTH
•Double
digit y-o-y revenue growth for third consecutive quarter; +31.0%
y-o-y in reported terms
•OIBDA-CapEx
+5.1% y-o-y in 2022 despite higher capital intensity. CapEx
ex-spectrum to come down in 2023
Operating performance
On ESG,
Vivo
is ranked 2nd in Brazil on the Corporate Sustainability Index
portfolio (ISE B3) which evaluates 70 companies' sustainability
commitments and performance. This is the second consecutive year
that the Company has achieved a Top 3 ranking in the index, being
the only telecommunications company within the Top 10. Vivo was
also included on the CDP Climate A list and the Blomberg Gender
Equality Index.
Vivo, through
Vivo Ventures,
its Corporate Venture Capital fund created with Telefónica Open
Innovation, has committed to invest 10 million reais in
Klavi,
to reinforce Vivo's presence in the financial solutions sector,
where the company already offers services such as
ViVo Money
(personal credit platform),
ViVo Pay
digital accounts (co-branded credit cards), as well as cell phone
and tablet insurance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACCESSES |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final Clients Accesses |
95,901 |
|
96,814 |
|
97,517 |
|
98,853 |
|
|
100,035 |
|
113,800 |
|
111,780 |
|
112,424 |
|
|
13.7 |
|
|
Fixed telephony accesses |
8,626 |
|
8,328 |
|
7,802 |
|
7,507 |
|
|
7,345 |
|
7,222 |
|
7,047 |
|
7,013 |
|
|
(6.6) |
|
|
Broadband |
6,318 |
|
6,284 |
|
6,265 |
|
6,262 |
|
|
6,273 |
|
6,297 |
|
6,359 |
|
6,420 |
|
|
2.5 |
|
|
UBB |
5,220 |
|
5,313 |
|
5,430 |
|
5,535 |
|
|
5,632 |
|
5,732 |
|
5,855 |
|
5,968 |
|
|
7.8 |
|
|
FTTH |
3,746 |
|
4,046 |
|
4,356 |
|
4,609 |
|
|
4,838 |
|
5,048 |
|
5,277 |
|
5,482 |
|
|
19.0 |
|
|
Mobile accesses |
79,673 |
|
80,957 |
|
82,245 |
|
83,912 |
|
|
85,293 |
|
99,192 |
|
97,321 |
|
97,973 |
|
|
16.8 |
|
|
Prepay |
33,669 |
|
33,872 |
|
34,163 |
|
34,287 |
|
|
34,399 |
|
42,264 |
|
39,874 |
|
39,306 |
|
|
14.6 |
|
|
Contract |
35,321 |
|
35,911 |
|
36,609 |
|
37,167 |
|
|
37,949 |
|
43,145 |
|
43,244 |
|
43,947 |
|
|
18.2 |
|
|
IoT |
10,683 |
|
11,173 |
|
11,473 |
|
12,458 |
|
|
12,945 |
|
13,784 |
|
14,203 |
|
14,720 |
|
|
18.2 |
|
|
Pay TV |
1,224 |
|
1,186 |
|
1,147 |
|
1,115 |
|
|
1,067 |
|
1,033 |
|
1,000 |
|
966 |
|
|
(13.3) |
|
|
IPTV |
914 |
|
919 |
|
918 |
|
917 |
|
|
899 |
|
891 |
|
888 |
|
898 |
|
|
(2.0) |
|
|
Total Accesses |
95,902 |
|
96,815 |
|
97,518 |
|
98,854 |
|
|
100,036 |
|
113,800 |
|
111,781 |
|
112,424 |
|
|
13.7 |
|
Notes: Includes OI's mobile access since April 2022. 3.4m inactive
mobile accesses acquired to Oi were disconnected; of those
accesses, 3.0m were disconnected in September 2022 (0.8m contract
and 2.2m prepaid) and 0.3m in December 2022 (0.2m contract and 0.2m
prepaid).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OWN UBB NETWORK COVERAGE |
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UBB Premises passed |
25,058 |
25,610 |
26,372 |
27,486 |
|
28,313 |
28,313 |
28,313 |
28,609 |
|
4.1 |
|
|
Owned (Fully/Partially) |
24,493 |
24,883 |
25,642 |
26,746 |
|
27,563 |
27,470 |
27,409 |
27,658 |
|
3.4 |
|
|
Total FTTH |
16,291 |
17,309 |
18,317 |
19,588 |
|
20,522 |
21,038 |
22,265 |
23,288 |
|
18.9 |
|
|
Owned (Fully/Partially) |
15,727 |
16,583 |
17,587 |
18,848 |
|
19,772 |
20,194 |
21,361 |
22,336 |
|
0.2 |
|
|
Uptake FTTH |
23% |
23% |
24% |
24% |
|
24% |
24% |
24% |
24% |
|
0.0 p.p. |
Notes: FTTH uptake includes FTTH connected divided by the total
FTTH premises passed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATIONAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures |
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile churn (quarterly) |
2.9 |
% |
2.9 |
% |
2.8 |
% |
2.8 |
% |
|
2.6 |
% |
2.5 |
% |
3.4 |
% |
2.6 |
% |
|
(0.1 p.p.) |
|
Contract |
1.1 |
% |
1.3 |
% |
1.2 |
% |
1.3 |
% |
|
1.2 |
% |
1.0 |
% |
1.9 |
% |
1.2 |
% |
|
(0.1 p.p.) |
Mobile churn (cumulative YTD)
|
2.9 |
% |
2.9 |
% |
2.9 |
% |
2.8 |
% |
|
2.6 |
% |
2.6 |
% |
2.9 |
% |
2.8 |
% |
|
0.0 p.p. |
|
Contract |
1.1 |
% |
1.2 |
% |
1.2 |
% |
1.2 |
% |
|
1.2 |
% |
1.1 |
% |
1.4 |
% |
1.3 |
% |
|
0.1 p.p. |
Mobile ARPU (EUR) (cumulative YTD)
|
4.0 |
4.0 |
4.1 |
4.2 |
|
4.5 |
4.6 |
4.6 |
4.7 |
|
(4.1) |
|
|
Contract |
7.2 |
7.2 |
7.4 |
7.4 |
|
7.9 |
8.2 |
8.3 |
8.3 |
|
(4.5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- ARPU: monthly average revenue divided by the monthly average
accesses of the period.
- Includes OI's mobile access since April 2022. In 2022, ARPU and
Churn are impacted by the disconnection of 3.4m inactive mobile
accesses acquired to Oi ; of those accesses, 3.0m were disconnected
in September 2022 (0.8m contract and 2.2m prepaid) and 0.3m in
December 2022 (0.2m contract and 0.2m prepaid).
T. Brasil accesses up 14% y-o-y mainly driven by higher value
segments (contract +18%, FTTH +19%).
In
mobile, Vivo
strengthened its leadership. Following the excellent performance in
the year and the acquisition of Oi's accesses in April-22, total
market share rose to 38.9% (43.5% in contract) as of
Dic-22.
In
fixed,
there has been an acceleration in the transformation to FTTH,
reaching 23.3m PPs (+3.7m in FY 22) and 408 cities passed (+81%
y-o-y). Thus, the speed delivery to customers has increased by 55
Mbps throughout the year to up to 232 Mbps on average, supported by
the launch of the 1 Gbps offer. FTTH connections reached 5.5m as of
Dec-22, 85% of total broadband accesses and an uptake of 24%
(stable y-o-y despite the acceleration in deployment).
Financial performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA BRASIL |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Euros in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
% Chg |
|
October - December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
Reported |
Organic |
|
2022 |
2021 |
|
Reported |
Organic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
8,870 |
6,910 |
|
28.4 |
9.1 |
|
2,361 |
1,802 |
|
31.0 |
10.1 |
|
Mobile Business |
|
6,106 |
4,610 |
|
32.4 |
12.6 |
|
1,659 |
1,230 |
|
34.9 |
13.4 |
|
Handset revenue |
|
573 |
415 |
|
38.2 |
17.5 |
|
183 |
138 |
|
32.8 |
11.9 |
|
Fixed Business |
|
2,764 |
2,300 |
|
20.2 |
2.1 |
|
702 |
572 |
|
22.6 |
2.9 |
|
Operating income before D&A (OIBDA) |
|
3,732 |
3,138 |
|
18.9 |
7.2 |
|
1,030 |
812 |
|
26.9 |
6.6 |
|
OIBDA Margin |
|
42.1 |
% |
45.4 |
% |
|
(3.3 p.p.) |
(0.7 p.p.) |
|
43.6 |
% |
45.1 |
% |
|
(1.4 p.p.) |
(1.4 p.p.) |
|
CapEx |
|
1,795 |
2,069 |
|
(13.2) |
9.7 |
|
498 |
1,067 |
|
(53.4) |
6.4 |
|
Spectrum & obligations |
|
35 |
706 |
|
(95.0) |
(95.8) |
|
33 |
700 |
|
(95.2) |
(96.0) |
|
OIBDA-CapEx |
|
1,938 |
1,069 |
|
81.2 |
5.1 |
|
533 |
(255) |
|
c.s. |
6.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- OIBDA before management and brand fees
- Includes OI's mobile access since April 2022
Revenue
grew 10.1% y-o-y in Q4 22 (+9.1% in FY 22) and 31.0% in reported
terms (+28.4% in FY 22) maintaining the strong pace of growth of Q3
22 (+10.6% y-o-y and 29.0% in reported terms) driven by the solid
commercial momentum and the progressive update on tariffs. In Q4
22, fixed revenue grew 2.9% y-o-y (+2.1% in FY 22; +2.1% in Q3 22)
driven by growth in FTTH and B2B digital revenue.
OIBDA
rose 6.6% in Q4 22 (+7.2% in FY 22) and 26.9% in reported terms
(+18.9% FY 22) as a result of revenue growth and the boost from
efficiencies and advanced digitalisation processes, which offset
the impact of inflation (mainly on personnel expenses) and higher
commercial expenses. Q4 22
OIBDA
margin
stood at 43.6% (-1.4 p.p. y-o-y; 42.1% in 2022, -0.7 p.p.
y-o-y).
CapEx
increased by 9.7% y-o-y in FY 22 and
CapEx/Revenue
stood at 19,8% following the one-time effort made in the connection
of Oi's assets, the acceleration in FTTH deployment and connection,
and the expansion of 5G coverage.
TELEFÓNICA INFRA
Key Messages
•T.
Infra manages a portfolio of FTTH vehicles, data centres and
submarine cable investments
•Leading
portfolio of FibreCos, already covering 13m6
PPs, that bring green connectivity to underserved
areas
•Telxius:
strong profitability and growth, fuelled by +17.2% organic y-o-y
OIBDA7
in FY 22
Operating performance
T. Infra: Unique Portfolio of Best in Class Assets
In Spain,
Bluevía
(Vauban/CAA consortium 45%, T. Infra 25% and T Spain 30%) launched
its operations last December with an initial footprint of 3.9m PPs
and a target of 5m by the end of 2024. Bluevía is a wholesale FTTH
provider focusing in rural areas and its fibre deployment
contributes to the development of smaller towns, reducing the
digital divide.
In Germany,
Unsere Grüne Glasfaser (UGG)
(Allianz 50%, T. Infra 40% and T. Deutschland 10%), has launched
operations in eight federal states (“Länder”) and signed MoUs to
deploy over 720k premises. UGG has also signed two wholesale
agreements with regional ISPs in 2022, on top of the previously
signed ones (one national and two regional).
In UK,
Nexfibre
(InfraVia Capital Partners 50%, T. infra 25% and Liberty Global
25%) will construct and operate a wholesale FTTH broadband network
of 5m premises not currently served by VMO2’s network by 2026, with
the opportunity to expand to an additional c.2 million premises,
thereby accelerating the UK’s FTTH deployment with an investment of
approximately £4.5bn, boosting digital inclusion.
In Brazil,
FiBrasil
(CDPQ 50%, T. Infra 25% and T. Brasil 25%) accelerated its
roll-out, reaching 3.3m PPs as of Dec-22, having added 1.3m in FY
22. During 2022, Fibrasil signed wholesale agreements with Sky
Brasil and Vero and was awarded with the Great Place to Work®
Brazil certification.
ONNET Fibra Chile
(KKR 60% and T. Chile 40%) and
ONNET Fibra Colombia
(KKR 60% and T. Colombia 40%) are the largest neutral wholesale
FTTH providers in their respective countries. Thanks to their
accelerated rates of deployment, both InfraCos have become market
leaders, with 3.7m and 2.4m PPs in FY 22 respectively, with
Colombia reaching in Q4 22 the highest net connections ever (x2
y-o-y). Recently signed wholesale contracts with Liwa in Colombia
and Direct TV and Entel (pending regulatory approval) in
Chile.
Nabiax
(Asterion Industrial Partners 80% and T. Infra 20%) is operating 14
data centres in seven countries (Spain, Chile, Brazil, Argentina,
Peru, U.S., and Mexico) with a combined IT power of 49 MW. In 2022,
Nabiax strengthened its sustainability commitments, launching its
2022-2024 ESG strategic plan and fulfilling the three ESG
indicators associated with the €320m “Green Financing” received in
2021.
Telxius: Next-Generation Subsea Cables
In early 2023
Telxius
received the pertinent approvals for Telefónica to increase its
stake to 70%, strengthening its partnership with Pontegadea which
in turn increased its stake to 30%. In addition, earlier this year,
Telxius and América Móvil announced the deployment of Tikal (by
Telxius), a new ultrahigh capacity subsea cable linking Guatemala
and the U.S., with a possible additional landing in Cancún (Mexico)
and an estimated service launch in 2025. This system completes an
investment cycle that fully replaces the iconic Sam-1 subsea cable
(still fully operational), comprising Brusa, Junior, Tannat,
Mistral and now Tikal, a new multiterabit, robust set of
next-generation subsea cables fully serving the Americas. Since
2018, Telxius will have added 7 new generation of subsea cables on
both sides of the Atlantic to its network, increasing its footprint
from around 31,000km to more than 82,000km.
In Q4 22, it maintained its strong commercial momentum,
accelerating organic revenue growth of 7.8% y-o-y (+17.7% y-o-y
reported), which together with continuous cost management and
better comparables fuelled y-o-y OIBDA growth of 30.6% organic
(+45.6% reported). In FY 22, revenue grew by 2.8% y-o-y (+12.6%
reported to €421m) and OIBDA7
+17.2% y-o-y (+30.3% reported to €218m), reaching a 51.8% margin
(+6 p.p. y-o-y organic). Bandwidth (Gbps) provisioned for capacity
services grew by 53% y-o-y in FY22 and the value of contracts
signed with third parties increased by 19% y-o-y, as result of the
incremental demand from carriers and hyperscalers.
Telxius'
traffic increased by 20% y-o-y in Q4 22 and +13% in FY 22 despite
the huge increase already seen on previous years associated with
the pandemic.
6
Included in the total Group´s FTTH
PPs
7 Constant
perimeter (excluding Tower business)
TELEFÓNICA TECH
(y-o-y changes)
Key messages
•Consistent
market outperformance, scaled-up with improved
capabilities
•Further
growth ahead leveraging our robust value proposition and a high
skilled team
•Wide
recognition by clients, partners and Industry Analysts improving
our competitive position
T.Tech
has consolidated in 2022 its position as a leading NextGen
solutions provider. T. Tech has increased its capabilities and
scale with strategic and value-accretive acquisitions and delivered
consistently an outstanding organic growth, which proves its strong
execution track record.
With hubs in Spain, Brazil, the UK, Germany, and Hispam and
a
diversified team
of ~6k professionals (>60 nationalities, >3.5k certifications
in 3rd parties' technologies) mostly located in Europe (~80%), T.
Tech provides a
differential customer journey
(migration from traditional comms & IT services to NextGen IT
solutions), and is the main driver of growth for the B2B revenue of
Telefónica Group.
T. Tech’s
leadership capabilities were recognised
in Q4 22 by key partners as
CISCO
(“Managed Services Partner of 2022 in Spain” and “SMB Partner of
2022 in the Americas”),
AWS
(“Partner of 2022 in Iberia”),
IBM
(“Partner of 2022 in Data & AI”) and by Industry Analysts
as
Gartner
(“Leader in Magic Quadrant Managed IoT Connectivity Services 2023”
for 9th
consecutive year and
Global Data
(“Very Strong Player in Managed Services for both Hybrid Cloud and
Security”).
T. Tech portfolio
helps its customers to meet their ESG targets.
Our Eco Smart portfolio contributes to a greener future by reducing
the environmental footprint, while our cybersecurity capabilities
constitute the key pillar to digitalise any business granting
secure personal information and compliance with regulatory,
compliance & governance standards. On the other hand, we are
fostering digitalisation and e-inclusion for SMEs thanks to our
dedicated suite for this segment.
Operating performance
T.Tech delivered a strong commercial performance in 2022
(bookings
>+50%
y-o-y) and generated a solid commercial funnel proving its strong
position in a challenging environment. Highlights of Q4
22:
T. Cybersecurity & Cloud Tech:
•Strong
commercial activity
leveraging a more balanced footprint and portfolio, including value
added services such as Business Applications with a strong industry
focus, in 2022 we successfully closed ~35k contracts.
•Strengthened
partnerships
with
Qualys
to integrate its native Cloud Platform and its cloud applications
into Telefónica Tech’s portfolio of managed Security services for
Spain and Portugal. Furthermore, the
Checkpoint's
5-star Partnership level was achieved in Spain and
Zoom
Phone competency obtained.
T. IoT & Big Data Tech:
•Sound
commercial performance
on high demand from sectors as Utilities, Mobility, Retail, and
Public Sector.
•Agreement
for sustainable mobility
with
Livall,
to provide smart helmets with global IoT connectivity and advanced
data services, allowing us to position as pioneers in this market
segment.
Financial Performance
Revenue
reached €462m in Q4 22 (+33.7% y-o-y)
on a more comparable basis. In FY
22 revenue stood at €1,482m (+57.1% y-o-y) thanks to the consistent
revenue performance at constant perimeter (~+27% y-o-y) and
strategic value-accretive acquisitions.
Since its creation in 2020,
T. Tech more than doubled its scale and progressively transformed
revenue mix.
This is reflected in the increased weight of revenue from own
platform, professional & managed services, and the improvement
geographic profile (>85% revenues from hard currency
countries).
T. Cybersecurity & Cloud Tech and T. IoT & Big Data
Tech
both outperformed the market and reached in FY 22 €1,307m (+56.3%
y-o-y) and €177m (+63.4% y-o-y), respectively. In both units, all
business lines had a strong performance with y-o-y growth of double
digit.
TELEFÓNICA HISPAM
(y-o-y changes in organic terms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20% |
of total Telefónica FY 22 revenue
|
|
13% |
of total Telefónica FY 22 OIBDA |
|
13% |
of total Telefónica FY 22 OIBDA-CapEx
|
|
Weights calculated with revenue, OIBDA and CapEx (ex. spectrum)
with 50% of the VMO2 JV
|
Key Messages
•Growth
in high-value accesses led to improved mobile ARPU (+1.0%) and FBB
ARPU (+1.1%) in FY 22 y-o-y
•FY
22 OIBDA-CapEx grew 2.0%
•"Internet
para Todos" recognised in Peru for promoting inclusive
connectivity, 3m people connected as of Dec-22
Operating performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEFÓNICA HISPAM |
|
|
|
|
|
|
|
|
|
|
|
|
ACCESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Accesses |
109,153 |
|
109,499 |
|
109,061 |
|
110,396 |
|
|
109,226 |
|
110,090 |
|
110,112 |
|
110,959 |
|
|
0.5 |
|
|
Fixed telephony accesses |
7,668 |
|
7,489 |
|
7,237 |
|
7,034 |
|
|
6,846 |
|
6,647 |
|
6,470 |
|
6,376 |
|
|
(9.4) |
|
|
Broadband |
5,555 |
|
5,655 |
|
5,701 |
|
5,757 |
|
|
5,796 |
|
5,852 |
|
5,934 |
|
6,031 |
|
|
4.8 |
|
|
UBB |
3,894 |
|
4,109 |
|
4,280 |
|
4,432 |
|
|
4,576 |
|
4,758 |
|
4,951 |
|
5,155 |
|
|
16.3 |
|
|
FTTH & Cable |
3,642 |
|
3,887 |
|
4,087 |
|
4,259 |
|
|
4,427 |
|
4,624 |
|
4,834 |
|
5,054 |
|
|
18.7 |
|
|
Mobile accesses |
92,925 |
|
93,401 |
|
93,173 |
|
94,613 |
|
|
93,567 |
|
94,560 |
|
94,648 |
|
95,580 |
|
|
1.0 |
|
|
Prepay |
66,145 |
|
65,927 |
|
65,144 |
|
66,075 |
|
|
64,645 |
|
65,172 |
|
64,785 |
|
65,341 |
|
|
(1.1) |
|
|
Contract |
22,611 |
|
23,100 |
|
23,495 |
|
23,800 |
|
|
24,007 |
|
24,205 |
|
24,563 |
|
24,772 |
|
|
4.1 |
|
|
IoT |
4,168 |
|
4,374 |
|
4,535 |
|
4,738 |
|
|
4,914 |
|
5,183 |
|
5,300 |
|
5,467 |
|
|
15.4 |
|
|
Pay TV |
2,864 |
|
2,873 |
|
2,869 |
|
2,905 |
|
|
2,940 |
|
2,957 |
|
2,987 |
|
2,900 |
|
|
(0.2) |
|
|
IPTV |
646 |
|
725 |
|
811 |
|
913 |
|
|
1,011 |
|
1,116 |
|
1,245 |
|
1,385 |
|
|
51.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accesses |
109,173 |
|
109,519 |
|
109,081 |
|
110,415 |
|
|
109,245 |
|
110,109 |
|
110,130 |
|
110,971 |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED OPERATIONAL DATA |
|
|
|
|
|
|
|
|
|
|
Unaudited figures (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March |
June |
September |
December |
|
March |
June |
September |
December |
|
% Chg |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UBB Premises passed |
13,216 |
13,814 |
14,527 |
15,159 |
|
16,080 |
16,951 |
17,918 |
18,885 |
|
24.6 |
|
|
Owned (Fully/Partially) |
12,422 |
12,762 |
13,173 |
13,558 |
|
14,364 |
15,156 |
12,324 |
12,823 |
|
(5.4) |
|
|
Total FTTH & Cable |
11,084 |
11,683 |
12,399 |
13,036 |
|
13,960 |
14,843 |
15,846 |
16,835 |
|
29.1 |
|
|
Owned (Fully/Partially) |
10,290 |
10,631 |
11,045 |
11,434 |
|
12,244 |
13,048 |
10,253 |
10,773 |
|
(5.8) |
|
|
Uptake FTTH |
33 |
% |
33 |
% |
33 |
% |
33 |
% |
|
32 |
|