Telefonica:Quarterly Results/2022 Q4
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Results[1]
| Key Items | Q4 2022 actual | Y/y growth rate |
|---|---|---|
| Revenue | 2,190 million euros | 6.6% |
| OIBDA | 667 million euros | 6.895 |
| Mobile service revenues | 1,516 million euros | 8.8% |
| Mobile post paid net adds | 264,000 | -48.64% |
| Mobile prepaid disconnections | -2,911k ((u/l -376k) | -1,448.40% |
Notes from results:
- The huge disconnections in mobile prepaid was due to revenue-neutral technical base adjustment (-2,535k accesses) in Q4 22 and the ongoing German market trend of prepaid to postpaid migration.
- The company said that " "Churn rates in Q4 22 remained slightly elevated due to the second wave of the European Electronic Communications Code (EECC) introduction with some early signs of normalisation towards year end."
- It added, "Based on current market dynamics, Telefónica Deutschland expects a robust pricing environment both, in the premium and the discount segment in 2023."
- It also pointed out that, "Telefónica Deutschland expects regulatory changes to remain a headwind to its financial performance in financial year 2023. Revenues, and to a lesser extent OIBDA, will be impacted primarily by the reduction of the mobile termination rate from 0.55 EUR cents per minute to 0.40 EUR cents per minute effective 1 January 2023."
- CEO Markus Haas believes that German macro picture remains strong. He said, " We are confident about the German macro picture, which remains healthy with the economy expected to grow slightly and continued low unemployment. In addition, we see an acceleration of digitalization effort across most industries with mobile operators acting as enablers of this trend."
- Regarding the spectrum, they want it extended. They expect process information in Q2 and a final decision by end of the year.
- They said that "revenue forecast for 2023 takes into account regulatory headwinds of ca. EUR -50m to -60m at revenue level and ca. EUR -10m to -15m at OIBDA level, as well as broadly stable energy costs at around prior year’s level."
- Their 2023 guidance also reflects offload of traffic caused by telefonica-1&1 roaming agreement into 1&1 own network.
Expectations[1]
| Key Items | Q4 2022 estimates | Q4 2021 actual | Y/y growth rate |
|---|---|---|---|
| Revenue | 2,122 million euros | 2,055 million euros | 3.26% |
| OIBDA | 638 million euros | 624 million euros | 2.24% |
| Mobile service revenues | 1,444 million euros | 1,394 million euros | 3.59% |