Telefónica consolidates transformation with solid fiscal 2018 | Major Businesses | Business
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As it posted its 2018 results, global telco Telefónica believes that the company has passed the halfway mark in its corporate transformation.

telefonica results 21Feb2019In the year that ended 31 December 2018, the company reported revenues of €48.693 billion, up 2.4% year-on-year on an organic basis while in the fourth quarter revenues accelerated growth up by 3% y-o-y to €12.917 billion. These were the drivers of a net profit of €3.331 billion, up 6.4% on a yearly basis.

Looking to the contribution of individual business lines, Telefónica said that differentiation strengthened its competitive position, with its FTTx/cable business adding 400,000 customers in the year, an increase of 21% year-on-year, while pay-TV was up 5% annually , and addition of 300,00 subs in the last quarter of 2018 to lead to a total of 8.9 million for the year.

A highlight for the year , and a portent for future business, saw the beginning of the company’s 5G Technological Cities project including a 4K TV pilot in mobility across Spain and the introduction of 5G networks in Barcelona.

Video revenues totalled €732 million in the fourth quarter, up 1.3% year-on-year and €2.881 billion for the year as a whole, up 0.5% on an annual basis. Video accounted for 42% of all digital services revenues. The total video access base stood at 9.8 with pay-TV accesses growing 5% year-on-year driven by IPTV and 900,000 active accesses of the Movistar Play OTT service in Latin America. The fourth quarter saw the launch of IPTV in Argentina, the integration of Netflix into the convergent portfolio in Spain and a Movistar Play launch in Uruguay.

“If I had to define this year 2018, I would define it as the year that passed the halfway mark in the transformation of Telefónica,” said executive chairman José María Álvarez-Pallete, commenting on the yearly results.

“I can assure you that Telefónica is closer to the company we want to be than to the company we were. Our solid set of fourth-quarter results reflected the improvement in business’ sustainability. Value customers and their average lifetime continued increasing, while both revenue and operating cash flow growth accelerated. In 2018, we regained customer relevance, resulting in the best-ever figure of customer satisfaction. We continued increasing the weight of high-growing revenues (broadband connectivity and services beyond connectivity) and investing in state-of-the-art technology networks. “