Telefónica Claims Remarkable Operating Momentum

Telefónica reported a 3% year-on-year growth in revenues on an organic basis for the fourth quarter of 2018 to 12.9 billion euros. The Madrid-based group forecast that revenues will grow about 2% on an organic basis in 2019 (compared with 2.4% in 2018).

José María Álvarez-Pallete, CEO, said: " In 2018, we regained customer relevance, resulting in the best-ever figure of customer satisfaction. We continued increasing the weight of high-growing revenues (broadband connectivity and services beyond connectivity) and investing in state-of-the-art technology networks. ...This performance, together with the remarkable operating momentum in the initial months of 2019, allow us to announce with confidence our 2019 targets of continue growing in revenues and OIBDA, as we keep the capex/sales ratio stable.”

Telefónica said digital services generated 6.79 billion euros in revenue in 2018 (up 24% year-on-year). Within that, video revenues totalled 2.88 billion euros (up 0.5%), while cloud generated 627 million euros (24.2%), IoT 376 million euros (31%) and security 433 million euros (41.7%).  The group's "Contents" revenue was up 86% to 1.83 billion euros, reflecting rising demand for its over-the-top (OTT) content propositions. Source: Telefónica statement