RIO DE JANEIRO, BRAZIL – The Spanish multinational Telefónica obtained in the first quarter of 2021 in Latin America revenues of US$2.4 (EUR1.9) billion, 12% less than in the same period of the previous year, but only 0.2 % if it had not been for the depreciation of the currency and after being affected by the Covid-19 pandemic.
As the company reported to the Spanish Securities and Exchange Commission (CNMV) on Thursday, the mobile business fell by 10.4 % -although it would have grown by 1.3 % in organic terms- to 1.26 billion euros, while the landline business fell by 11.5 % to 676 million euros.
Operating income before depreciation and amortization (oibda) in the Latin American region, which does not include Brazil, amounted to 396 million euros, 21% less than in the same period last year, or 1.4% if currency changes were not taken into account.
In Latin America, capital expenditures grew by 7.4% to 350 million euros. As for radio spectrum, it invested 135 million euros in the region in the first quarter.
Telefónica explains that, in organic terms, that is to say, without taking into account the exchange rate, revenues experienced an improvement in their sequential evolution (in the fourth quarter of the year they fell by 2.5%).
In Chile, the only country in the region where revenues grew, they rose by 8.4 % to 424 million euros. Revenues fell by 22.4 % in Argentina to 412 million euros. They also fell in Peru, by 21.4 % to 371 million, Colombia, by 0.8 % to 330 million, and Mexico, by 17.6 % to 239 million.
As for oibda by country, it was 41 million in Argentina, 58.8 % less than in the same quarter of 2020; 128 million in Chile, up 7.5 %; 68 million in Peru, down 23.7 %; 94 million in Colombia, down 3.5 %; 17 million in Mexico, down 47.1 %.
In Latin America, Telefónica continues with its strategy of optimizing its operations. Thus, during this period, it has reached an agreement with investment firm KKR for the development of a new fiber company, in Mexico it has launched a Movistar Money pilot, together with Sabadell, and it has transferred its satellite signal management and transport business to Hispasat.