Telefónica already has 2.5 million pay television customers

As a whole, Telefónica Spain records revenues in the third quarter of 2015 that again show year-on-year growth for the first time since the third quarter of 2008.

Telefónica Spain's revenues for the third quarter of 2015 once again show year-on-year growth for the first time since the third quarter of 2008, as a result of the transformation strategy carried out in recent years. Thus, revenues grew 0.2% year-on-year and improved 1.3 p.p. sequential thanks, according to the company, "to a high value offer that is supported by our differential assets, a competitively more rational market and a more favorable economic context with improvement in private consumption. In addition, commercial activity presents an excellent performance, despite the seasonality of the period and the elimination of permanence contracts in "Fusion" on August 1.

Regarding operating parameters, the accesses managed by Telefónica Spain at the end of September (41 million) remained stable year-on-year (-0.4%).

“Movistar Fusión” with a plant of 4 million and 1.5 million additional mobile lines, grew 14% and 9% year-on-year respectively, after the sequential improvement in net income (126 thousand new customers in the quarter vs 16 thousand in the second).

“Movistar Fusión” continues to be the main lever that drives the growth of value customers, since almost 90% of the additions in the quarter incorporate new services and 51% correspond to completely new customers in “Movistar”. As a result, 28% of “Movistar Fusión” customers have ultrafast fiber of 100 or 300 Mb and 58% have pay TV, including 120 thousand customers with satellite TV.

Retail broadband accesses total 5.9 million and grew 1% year-on-year after registering a net gain in July-September of 45 thousand accesses (-67 thousand in April-June). This net profit is the best since the launch of “Movistar Fusión”
and is supported by the success of “Movistar Fusión+”.

For its part, fiber accesses accelerate their growth rate despite the seasonality of the period, with a net gain of 230,000 in July-September and a plant of two million.

pay tv

The pay television access plant amounts to 2.5 million (1.6 times compared to September 2014), with a net gain in July-September of 275,000 accesses.

Finally, mobile accesses stand at 17.3 million, 3% lower year-on-year. LTE customers reach three million, more than double that of a year ago, and LTE penetration stands at 19% (+11 p.p. year-on-year).

The president of Telefónica, César Alierta, has highlighted that “Telefónica's third quarter results reflect a new acceleration in organic growth figures” and has emphasized the better performance of the business in Spain “which returns to year-on-year revenue growth after seven years of intense transformation” and that “presents a generalized improvement in commercial activity in practically all services.”