Q3 2024 Telefonica SA Earnings Call Transcript
Key Points
- Telefonica SA (TEF) reported a significant acceleration in free cash flow, growing by close to 90% in Q3 and 28% over nine months, surpassing their target of more than 10% growth for the year.
- The company achieved strong operating and strategic progress across key markets, with Spain delivering its best performance in six years and Brazil sustaining growth momentum.
- Telefonica SA (TEF) expanded its 5G coverage to 71% and fiber to the home to 82 million premises, achieving its 2026 target more than two years ahead of schedule.
- The company maintained a strong focus on customer satisfaction, achieving a record Net Promoter Score (NPS) of 34 and adding 1 million accesses to reach 393 million.
- Telefonica SA (TEF) continues to make progress in network leadership and operational excellence, with significant advancements in AI-driven solutions and industry collaboration.
- The company faced headwinds from the depreciation of the Brazilian real, which reduced revenue growth by 4.2 percentage points and EBITDA growth by 4.7 percentage points.
- Reported results were impacted by a EUR314 million non-cash impairment charge, particularly affecting operations in Hispam due to currency depreciation and strong competition.
- Despite strong underlying performance, Telefonica SA (TEF) experienced FX headwinds impacting reported revenue and EBITDA figures.
- The competitive environment in Spain remains intense, particularly in the low-end market, with some players repositioning their products and strategies.
- In Germany, revenue faced headwinds due to MTR reductions and shifts in the business model, resulting in a 1.6% year-on-year decline in Q3.
Good morning. Thank you for standing by, and welcome to Telefonica's January-September 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. Adrián Zunzunegui, Global Director of Investor Relations. Please go ahead sir.
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Good morning, and welcome to Telefonica conference call to discuss January-September 2024 results. I'm 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 the Telefonica Group. These statements may include financial or operating forecasts and estimates or statements regarding plans,
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