Telefónica managed to record revenues up to June of 6,164 million euros, which represents an increase of 1.1%. In addition, in the second quarter of this 2022 its revenues increased by 1.3%, being the fifth consecutive quarter in positive, although much of that increase is due to the great growth suffered by mobile phone sales. The operator currently has 15.7 million mobile lines, in addition to 5.8 million broadband lines where fiber has grown by 4.9% to 4.9 million.
These are the results in Spain
Telefónica Spain affirms that «maintains its strategy based on rationality and the generation of value»with a renewed offer for the consumer segment how is my Movistar. This new convergent offer arrived a few months ago to replace Movistar Fusión, and it did so with the main characteristic of being much more customizable, so that each customer could get the package that best suits their needs or tastes.
This offer adds value to communications and television content, such as Internet services, devices and new services for the home. Telefónica considers that it is well positioned to face the current competitive and macroeconomic environment and take advantage of the opportunities that arise: demand for higher quality connectivity and servicethe impulse of the European recovery funds and the possibilities of the market in the diversification of the sources of income.
If we are already talking about numbers, the accesses reflect for Telefónica an improvement in the activity of all services compared to the first quarter of 2022, the return to growth in fixed broadband being notable (+6k in Q2 2022) thanks to the continued advancement of fiber (+108k; +62k retail in Q2 2022). Fiber already represents 86% of the broadband plant and the NPS (system that measures customer loyalty and satisfaction) stands at 44%, its all-time high.
Secondly, converged clients (-3% YoY) decreased in the quarter (-27k), although they improve sequentially, with a good reception of the new miMovistar convergent offer launched in May. Despite having been with us for a short time, miMovistar is making inroads among the operator’s customers, and they currently account for 10% of Movistar’s converging customer base. In the second quarter of 2022, the ARPU (or average revenue per user) stood at 90.1 eurosup 3.1% year-on-year, while churn improves again to 1.1%.
Telefónica’s revenues in Spain grow for the fifth consecutive quarter, specifically we are talking about 1.3% year-on-year in the second quarter of this year, driven by the better performance of revenues from services (-0.6% year-on-year; +0.8 pp sequentially) thanks to the growth of convergent ARPU and of IT, in addition to the return of roaming to levels prior to the pandemic. Handset sales also increased by 82.9% year-on-year thanks to the integration of the handset in the converged offer from April 2021.
On the other hand, OIBDA fell by 3.4% year-on-year in the second quarter of 2022, which represents an improvement of 1.5 pp compared to the first quarter of this year, despite the scenario being strongly affected due to the increase in all energy costs and the greater weight of lower margin revenues. This improvement is mainly due to higher revenue growth and greater efficiencies resulting from the restructuring plan (46 million euros in the second quarter) and the transformation of the fixed telephony network with a growing disconnection from copper. This OIBDA margin currently stands at 36.6%.