Telefonica SA (TEF) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 4, 2022 5:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Adrian Zunzunegui

Good morning, and welcome to Telefonica's conference call to discuss January-September 2022 results. I'm Adrian Zunzunegui from Investor Relations.

Before proceeding, let me mention that the financial information contained in this document has been prepared under 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 Telefonica 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 Telefonica's Investor Relations team in Madrid or London.

Now let me turn the call over to our Chief Operating Officer, Mr. Angel Vila.

Angel Vila

Thank you, Adrian. Good morning, and welcome to Telefonica's Third Quarter Results Conference Call. With me today are Laura Abasolo; Eduardo Navarro, and Lutz Schuler.

As usual, we will first walk you through the slides, and we'll then be happy to take any questions.

We have again proven how to manage the current challenging macro situation. The relentless execution of our strategy has allowed us to report improving growth trends in euros in both revenues and OIBDA and to reiterate our recently updated guidance and the dividend for 2022. Our streamlined leaner operating model enabled us to generate a stable organic OIBDA margin versus Q3 '21 despite ongoing cost headwinds.

At the same time, we maintained a strong balance sheet and have a strong liquidity position that covers maturities over the next 3 years.

Operationally, we reinforced our leadership in our core markets. In Spain, Mi Movistar helped to improve our commercial momentum and sequential OIBDA performance. In Brazil, our unrivaled operating and financial performance helped us to reinforce our leading market position. Germany posted strong operational and financial metrics, while in the U.K., VMO2 accelerated OIBDA growth as synergies started to kick in.

And whilst running our operations, we continue to build optionality. Telefonica Infra vehicles have already passed 12 million premises with fiber as of September.