Telefonica SA (TEF) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 28, 2022 4:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. Thank you for standing by, and welcome to Telefónica's January-June 2022 Results Conference Call. [Operator Instructions]. As a reminder, today's conference is being recorded.

I would now like to turn the call over to Mr. Adrián Zunzunegui, Global Director of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Telefónica's conference call to discuss January-June 2022 results. I'm Adrián Zunzunegui from Investor Relations. Before proceeding, let me mention that the financial information contained in this document has been prepared under the International Financial Reporting Standards as adopted by the European Union. This financial information is unaudited. This conference call and webcast, including the Q&A session, may contain forward-looking statements and information relating to the Telefónica Group. These statements may include financial or operating forecasts and estimates or statements regarding plans, objectives and expectations regarding different matters.

All forward-looking statements involve risks and uncertainties that could cause the final developments and results to materially differ from those expressed or implied by such statements. We encourage you to review our publicly available disclosure documents filed with the relevant securities market regulators. If you don't have a copy of the relevant press release and the slides, please contact Telefónica's Investors Relations team in Madrid or London.

And now let me turn the call over to the Chairman and Chief Executive Officer, Mr. José María Álvarez-Pallete.

Jose María Alvarez-Pallete

Thank you, Adrián. Good morning and welcome to Telefónica's second quarter results conference call. With me today are Ángel Vilá, Laura Abasolo, Eduardo Navarro and Lutz Schuler. As usual, we will first take you through the slides and we'll be then happy to take your questions.

During the second quarter, our continued focus on our strategic objectives resulted in improved momentum with accelerated revenue and OIBDA growth in reported and organic terms. Business performance was strong across our markets. In Spain, we improved OIBDA year-on-year. In Brazil, we strengthened our leadership after the Oi mobile asset acquisition, while improving financial and operational momentum. In the U.K. on the first anniversary of VMO2 integration, synergies are being realized. The company is back to revenue growth, has accelerated OIBDA growth and accelerated investments in digital infrastructure.

Finally, Germany is progressing ahead of plan in 5G rollout, 50% population coverage while financial performance remained robust. In fact, our German colleague just upgraded OIBDA full year guidance. We have so far over-delivered and feel prudently confident for the full year. As such, and despite the uncertain macro environment, we are updating our 2022 guidance. We currently don't see a deterioration of our operation and financial momentum and now expect to be in the high end of the low single-digit growth range for revenues and in the mid- to high-end in OIBDA terms.