Telefónica Pay TV subscribers down 35,000 in 1Q 2014

Friday, May 9th, 2014 
Telefónica logo

MADRID — Telefónica (Madrid and NYSE: TEF) has released its first quarter (January to March) 2014 results.

Pay TV accesses (3.6 million) rose 8% year-on-year, highlighting the performance of Telefónica España (consolidating its recovery trend for the second quarter in a row) and the double-digit year-on-year growth of Telefónica Hispanoamérica and Telefônica Brasil.

In Video, within the area of Consumer, Telefónica acquired for Spain exclusive content rights in Moto GP and Formula 1. Thus, the strategic focus on fostering Pay TV growth is delivering positive results with revenues growing in organic terms by 12% year-on-year in the quarter, and increasing market share in the main markets where the Company is present.

Telefónica España

Pay TV accesses posted positive net additions of 58 thousand accesses, consolidating the change of trend started in the previous quarter and leading total access base to 730 thousand at the end of the quarter (+11% year-onyear).

The success of the new “Movistar TV” offering reflects Telefónica’s commitment for a higher differentiation based on a superior service quality.

Telefônica Brasil

In the fixed business, traditional accesses once again posted positive net additions this quarter (80 thousand accesses), to reach 10.8 million (+3% year-on-year). Retail broadband accesses stood at 3.9 million (+4% year-on-year) and Pay TV accesses stood at 645 thousand, up 14% year-on-year.

Telefónica Hispanoamérica

Traditional business accesses totalled 13.6 million, stable year-on-year, while Broadband accesses stood at 5.1 million, up 7% year-on-year. Pay TV accesses totalled 2.2 million, up 16% year-on-year with net additions of 58 thousand accesses in the quarter, reaching a penetration of 16% out of total traditional business accesses.

Telefónica Perú

Telefónica Peru further strengthened its competitive positioning in the first quarter of 2014. In the fixed business, by fostering a steady increase in bundled services, improving service quality through increasing the speed of fixed broadband and migrating pay TV customers to bundles with high-definition channels.

Pay TV accesses (000s)

                                                                                             Growth
                                                                          -------------------------
                    4Q 2012  1Q 2013  2Q 2013  3Q 2013  4Q 2013  1Q 2014  Quarter    Y-o-Y  Y-o-Y %
                    -------  -------  -------  -------  -------  -------  -------  -------  -------
Spain                 710.7    659.9    632.5    609.3    672.7    730.3     57.6     70.4    10.7%

Germany                57.2     51.3     46.0     41.5      0.0      0.0      0.0   (51.3)  -100.0%

(Czech Republic*      141.4    140.9    142.8    147.6    156.0        -        -        -        -)

Brazil                601.2    565.7    537.5    587.7    640.1    644.8      4.7     79.1    14.0%

Hispanoamérica      1,825.7  1,886.6  1,968.4  2,055.1  2,133.5  2,192.0     58.5    305.4    16.2%
 Chile                424.0    441.8    464.5    480.5    503.2    527.1     23.9     85.3    19.3%
 Colombia             284.8    299.1    314.2    332.1    347.6    363.8     16.2     64.7    21.6%
 Peru                 901.6    907.8    912.5    904.8    897.1    885.7   (11.4)   (22.1)    -2.4%
 Venezuela and
  Central America**   215.3    237.9    277.2    337.6    385.6    415.3     29.7    177.4    74.6%
                    -------  -------  -------  -------  -------  -------  -------  -------  -------
Total               3,336.2  3,304.5  3,327.1  3,441.2  3,602.2  3,567.1   (35.1)    262.6     7.9%
 ex. Czech Rep.     3,194.8  3,163.5  3,184.4  3,293.6  3,446.3  3,567.1    120.8    403.6    12.8%

* Sold to PPF Group N.V.
** Central America includes Guatemala, Panama, El Salvador, Nicaragua and Costa Rica.