Telefónica Hispanoamérica maintains its growth rate driven by postpaid, fiber and its new operating model

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Telefonica statement

(Automatic translation)

Telefónica Hispanoamérica concluded the third quarter of 2021 with positive growth in its main operational and financial indicators, which reflect the behavior of its postpaid (contract) and fiber activities, as well as the maximization of efficiencies and synergies associated with its new operating model.

The region closed the third quarter of the year with a reported turnover of 2,124 million euros (+ 11.6% compared to the same period in 2020). Likewise, the OIBDA reached 872 million euros and showed strong growth in its year-to-year behavior with growth in all the countries of the region. In fact, service revenues and the OIDBA improved their year-over-year trend for the fourth consecutive quarter.

From the customer’s point of view, Telefónica Hispanoamérica ended the month of September with 109 million accesses (+ 2.8% compared to the same period in 2020). The 93.1 million mobile accesses stand out (+ 3.9% over one year), including 65.1 million in prepaid and 23.5 million in postpaid.

On the other hand, fixed broadband access exceeded 5.7 million (+ 5.4% over one year), of which 4.08 million are served by FTTH1; and those of pay television reached 2.86 million accesses (+ 0.5% over one year) including 811 thousand in IPTV (+ 61.8% over one year).

Solid and efficient operational growth

In the third quarter of 2021, postpaid access (flat rate) maintained its growth: + 9% over one year. In this segment, the operations of Chile, Colombia, Mexico and Peru stand out, which increased by 21%, 13%, 11% and 10% respectively year on year. In prepaid, access which is recharged frequently increased by 5% over one year.

For its part, the fixed activity shows the transformation we know from operations towards optical fiber. Telefónica Hispanoamérica already includes 11.7M UUII passes with FTTH and cable access (+ 1.8M in 9M 21) and 4.1M connected (+ 0.7M in 9M 21).

This transformation will be consolidated with the deployment of InfraCos in Chile and Colombia. In Chile, forecasts are expected to reach 1.5 million additional BUs by the end of 2022, and in Colombia, 3.1 million additional BUs are expected to be deployed over the next 3 years.

More local debt, less exposure

In accordance with the objective of reducing its exposure in the region, Telefónica Hispanoamérica increased its volume of local currency debt in the main operations, reaching debt levels similar to those of the Telefónica group. Likewise, it reduced its CapEx on revenues (8.6% in 9M21, -0.6 pp over one year).

This latest improvement is the result of less investment in legacy technologies and through the implementation of alternative investment models, the results of which will be even more evident with the InfraCos of Chile and Colombia.

The OIBDA published for 3Q 21 and 9M 21 is impacted by capital gains related to the sale of 60% of InfraCo Chile (+ € 409m) and by the record of – € 24m related to the increase spending in Argentina and Peru.

Performance by country

  • Chili. The operation has seen business growth in higher value segments, fundamentally in FTTH with an average net profit of 96,000 per quarter, over the last 4 quarters. This, combined with the achievement of operational synergies, enables simultaneous growth in revenue and OIBDA for the third consecutive quarter. OIBDA-CapEx increased by 11.8% over 9M 21. The company was the first in the sector to receive the “Seal Equal Conciliation” label for its commitments and achievements in terms of diversity.
  • Peru. The company continues to show business growth in key segments despite a challenging macroeconomic and social environment and challenging competitive environment. Revenues and OIBDA increased 12.2% and 6.5% respectively in 3Q 21. OIBDA-CapEx fell 16.5% in 9M 21. The company connected about 13,000 rural towns with “Internet para Todos ”(2.2 million people) and received the Scotiabank“ 2021 Equal Grand Prize ”for the“ Mujeres en Redes ”project.
  • Colombia. The operation recorded remarkable financial results despite the tightening of marketing campaigns, especially in the mobile business after WOM entered the market. The positive growth of package, prepaid, broadband and pay television stands out. Revenue grew 8.5% year-on-year in 3Q 21 and OIBDA-CapEx increased 20.1% in 9M 21. The company launched the “Health Tech Community”, the country’s leading digital health ecosystem, and received the “Andesco Sustainability Award” “in the categories Best Large Company and Best Social Environment.
  • Mexico. The operation yields a growth in both sequential and year-on-year OIBDA (+ 112.9%) in 3Q 21 linked to the efficiency measures adopted and the good performance of contract and access revenues after having achieved record net income. Likewise, the successful migration to AT & T’s network continues with 52% of the traffic already migrated to its network in 3T 21. Movistar México has been selected as the most responsible company in the country in the Expansión ranking of 2021 .
  • Argentina. Revenue increased 35.8% year-on-year in 3Q 21 in local currency, driven by FTTH, prepaid and contractual access and by the price update made during the year. OIBDA-CapEx grew 10.2% in 9M21 in local currency, despite the impact of higher commercial spending. The company announced an alliance with third parties to bring fiber to 250,000 homes and reduce digital exclusion and launched the “Connect Responsibly” campaign.

About Telefónica Hispanoamérica:

Telefónica is one of the largest providers of telecommunications services in Latin America. The company, which operates under the Movistar brand, offers fixed broadband connectivity services – with FFTH solutions – and mobile broadband with 4G networks, as well as a wide range of digital services for more than 109 million residential and business customers. of the region.

Telefónica Hispanoamérica offers its services in: Mexico, Central America, Colombia, Venezuela, Peru, Ecuador, Uruguay, Chile and Argentina.

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