Q2 2024 Telefonica SA Earnings Call Transcript
Key Points
- Telefonica SA (TEF) reported a solid Q2 with revenue growth of 1.2% year on year, driven by improvements in both B2B and B2C segments.
- The company achieved robust growth in EBITDAaL minus CapEx, which increased by 11.5% year on year, positioning them well for the second half of the year.
- Telefonica SA (TEF) expanded its fiber-to-the-home footprint by an additional 2 million premises, with fiber coverage now reaching 66% of the population across core markets.
- The company signed a non-binding MOU with Vodafone for the creation of a FiberCo, which should bring further rationality and network optimization to the FTTH market.
- Telefonica SA (TEF) continues to lead in sustainability, with Time Magazine ranking it among the Top 10 World's Most Sustainable Companies.
- Despite the positive revenue growth, Telefonica SA (TEF) faces headwinds from weaker FX rates, impacting overall financial performance.
- The company experienced a timing-related EUR279 million tax payment in Peru, which, although factored into guidance, affected cash flow in Q2.
- There are ongoing challenges in the Spanish market, with mobile termination rates and declining voice traffic impacting wholesale revenues.
- The company’s CapEx intensity is expected to increase in the second half of the year, which could pressure free cash flow.
- Telefonica SA (TEF) is dealing with uncertainties regarding domestic fiscal and monetary policies in Brazil, which could impact future financial performance.
Good morning. Thank you for standing by and welcome to Telefónica's January-June 2024 results conference call. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr. Adrian Zunzunegui, Global Director of Investor Relations. Please go ahead, sir.
Good morning and welcome to Telefónica's conference call to discuss January-June 2024 results. I am Adrian Zunzunegui from Investor Relations. Before proceeding, let me mention that the financial information contained in this document has been prepared under International Financial Reporting Standards as adopted by the European Union. This financial information is unaudited.
This conference call and webcast, including the Q&A session, may contain forward-looking statements and information relating to Telefónica group. These statements may include financial or operating forecast and estimates or statements regarding plans, objectives, and expectations regarding different
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