Mixed TV picture for Telefónica

Telefónica’s overall TV base was stable year-on-year, at 8.3 million including 4.3 million satellite customers, giving the company a pay TV penetration of 48% where it offers the service.

Pay TV subscribers in Spain numbered 3.657 million, down from 3.711 million in the third quarter and from 3.671 million at the end of 2015.

In Spain, Movistar Fusión’s consumer based reached 4.3 million customers, up 5% year-on-year, with some 80% of TV customers being Fusión converged customers, up 10 percentage points year-on-year. In total, there were 2.943 million Movistar Fusión TV customers in Spain at the end of the year, up from 2.6 million a year earlier.

The quarterly ARPU of Fusión stood at €81.6, 12% higher year-on-year, driven by the portfolio renewal and price hikes, and by changes in the mix of customers.

However, the total number of pay TV subscribers in Spain continued to decline slightly in the fourth quarter, with 54,000 losses compared with 44,000 down in the third quarter.

Wholesale TV customers in Spain fell by 1.8% in the quarter.

In Brazil, pay TV numbers dropped year-on-year from 1.788 million to 1.713 million. Pay TV numbers were down in Venezuela, up slightly year-on-year in Chile, and up strongly in Colombia year-on-year, but down quarter-on-quarter.

Overall, Telefónica posted revenues of €52 billion for the year, up 2.7%, and net income of €4 billion, up 4.8%.

“The 2016 results strengthened our sustainable growth, following the fourth quarter acceleration of growth rates in main operational metrics. At the same time, the strong acceleration of free cash flow generation in the year and the long-term financing raised, accelerated deleverage and bolstered our financial structure. For 2017 we expect similar operating trends: revenue stability despite higher regulatory impacts mainly in European markets, OIBDA margin expansion and lower CapEx intensity,” said executive chairman Jose María Álvarez-Pallete.