Telefonica Europe today reported revenue growth of 7.4% year-on-year in Q1, while rival BT recorded a 3% fall in the period – its fiscal 4Q.
Higher smartphone sales in increased mobile internet usage took Telefonica’s revenues to €3.486 million, with operating income before depreciation and amortisation up 3.6% to €914 million.
The increased mobile internet usage boosted ARPU 35%, not including SMS data revenues.
Much of the group’s growth during 1Q is due to a strong performance in Germany, chairman and chief executive Matthew Key said, however the UK had also done well, delivering strong financials and a “market leading” churn rate of 1.1%.
The number of fixed retail broadband lines grew by 2.2 million to 3.8 million by end 1Q, driven in-part by the integration of HanseNet subscribers from mid-February.
It wasn’t all good news, though, as the firm’s businesses in Ireland and Czech Republic saw revenues fall 5.8% to €211 million, and 8.9% to €530 million respectively during the quarter.
BT, meanwhile, is planning to invest a further £1 billion (€1.1 billion) in its UK fibre networks over the next three years, after beating its revenue forecasts in the year to end March.
Revenues of £20.9 billion were down 2% year-on-year, but were higher than the £20.7 billion the telco predicted. The figure for calendar 1Q10 was down 3% year-on-year at £5,356 million.
Full year EBITDA grew 6% to £5,781 million, and operating profit was up 7% at £1,877 million.
Chief executive Ian Livingstone was pleased by the results, noting the firm is in the process of investing in TV services, and its Global Services business.
The additional investment in fibre networks will bring the firm’s total outlay to £2.5 billion, as it aims to cover two-thirds of the UK by 2015, he said.
Livingstone is also looking to improve underlying revenue, and growing EBITDA and cash flow over the next three years.
However, he noted the firm would have to sort out its troubled pension fund, and reduce net debt during that period.