Economy- Telefónica reduces its profit in Brazil by 34.6% until June, while earning 67 million in Germany

Subsidiaries grow in income, driven by the mobile segment

MADRID, 27 Jul. (EUROPA PRESS) -

Telefónica Brazil has reduced its profit by 34.6%, to 1,496 million reais (275 million euros), in the first half due to higher financial expenses, while Telefónica Germany has recorded net profits of 67 million in the same period , compared to the losses of the first half of 2021.

Both subsidiaries have presented this Wednesday half-year results that are characterized by the increase in income, driven by mobile. The Telefónica group will present results this Thursday.

In the case of Brazil, the firm has incorporated Oi's mobile assets, which, together with its good commercial moment, has allowed it to increase its income by 7.8%, to 23,183 million reais (4,268 million euros at the exchange rate). .

Telefónica Brazil has registered a recurring gross operating profit (recurring Ebitda) of 9,090 million reais (1,675 million euros), which represents an increase of 4.4%.

The firm has added 13.9 million mobile customers in the second quarter, reaching 114 million accesses, an increase of 17.7% compared to the figures they had at the same time last year.

Thus, it has increased its investment in infrastructure (capex) by 6.2%, to 4,455 million reais (820 million euros). Telefónica has a fiber optic network to the home in the country that reaches 21 million real estate units spread over 354 cities.

On the other hand, the company has multiplied gross debt by 2.6 in the last 12 months, to 3,880 million reais (715 million euros), after paying most of the payment for 5G licenses and incurring debt for 1,000 million reais (184 million euros)

In the case of Telefónica Germany, revenues have increased by 5.5% in the first half, to 3,949 million euros, mainly due to the high sale of mobile devices, which has grown by 18.4%.

The firm has registered an operating result before amortization (Oibda) of 1,231 million euros in the first half, which represents a growth of 5.9% compared to the first half of 2021 with stable margins above 31%.

As a result of these figures, Telefónica has improved its Oibda guide to the market, which went from growth in low single digits at the end of the year to growth in low or medium digits.

The company added 374,000 mobile contract customers in the second quarter, which, together with a certain recovery in roaming, has allowed it to grow 2.8% in billing in this segment.

In contrast, the fixed segment has reduced its income by 0.4% until June, with 399 million euros, although the firm has grown in the second quarter.

The company has allocated 556 million euros to capex, 9.5% more than in the same period of the previous year, and aims to end the year with 5G coverage in 60% of the country.