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Latin America South helps drive Telefónica Q1 growth

Bnamericas Published: Saturday, May 11, 2019

Telefónica's Latin America South and UK units drove growth in what was otherwise a lackluster first quarter for the Spanish company.

The telco posted an overall organic increase in revenue of 3.8%. Net profit rose 10.6% rise to 926mn euros (US$1.04bn).

Latin America South saw 15.2% organic growth in revenues to 1.61bn euros, while the UK unit grew 5.3% organically to 1.69bn euros.

Argentina slowed down due to salary updates in the quarter, while Peru benefited from higher service revenues and lower subsidies.

Telefónica Brasil grew 1.7% to 2.56bn euros.

The Latin America North unit grew 1.2% to 971mn euros driven by Colombia and Central America and an improvement in Mexico.

Telefónica reached agreements to sell its Guatemala and El Salvador units to América Móvil in January and its Panama, Nicaragua and Costa Rica units to Millicom in February, effectively ending the company’s presence in Central America.

The company has been seeking to shed debt. This month, Telefónica inked a deal with European infrastructure fund manager Asterion Industrial Partners to sell 11 datacenters, eight in Latin America, in seven countries, for 550mn euros.

The telco said net debt had decreased for the eighth consecutive quarter, by 693mn euros.

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