TELEFÓNICA'S NET PROFIT TO SEPTEMBER UP BY 26.4% AT 3,455
The Company has consolidated the improvement of its quarterly returns in all regions and,
between January and September, has recorded year-on-year growth rates of +10.7% and
+19.6% in OIBDA and operating income, respectively.
The Company's earnings per share mark a turning point and rise to 0.98 euros per share
in underlying terms (0.36 euros in the third quarter), picking up significantly from the
The greater cash generated in the third quarter (€ 2,541M, € 4,268M since January) and
the execution of the divestment programme and asset portfolio management, including
events following the close of the quarter, have enabled almost 5,500 million euros to be
trimmed from its net financial debt since the end of June to 52,823 million euros. This is
in line with the Company's objective to cut the leverage ratio (net debt over OIBDA) to
2.35 times by the end of the year.
Thanks to an active financing policy (€ 13,000 million so far this year), Telefónica has
already covered its debt maturities until after 2014, with a net liquidity position of
The revenue generated by Telefónica Latin America exceeded for the first time in history
the weighting of revenue from operations in Europe and now represent 49% of the
Company's total turnover, which has remained stable at 46,519 million euros. Both Latin
America (+5.9%) and mobile data (+14.2%) continue to be growth drivers for the Group.
Both aspects underline the value of diversification as Telefónica's strength.
In the first nine months of the year, the greatest efficiencies stemming from the
transformation initiatives and from the benefit of Telefónica's scale have driven OIBDA to
15,782 million euros. The operating result has reached 8,009 million euros.
In operational terms, 78% of the Group's clients are mobile accesses, amounting to 246
million (+6%), supported by the sustained growth in contract users (+7%; especially in
Latin America, +12%). Mobile broadband access has grown at solid rates of +40% yearon-
year and already accounts for 47.7 million accesses. In Telefónica's European
Madrid, 7 November 2012 operations, one third of mobile clients are already using mobile broadband thanks to the
increasing adoption of smartphones.
The Company is advancing in its transformation process to become a "Digital Telco" with
major milestones such as the launch of the best convergent offer in Spain, the new IPTV
platform in Brazil and the development of new M2M services.
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