Telefonica adds 94,000 pay TV subscribers in 1Q 2016

MADRID — Today Telefónica (NYSE:TEF) (LSE:TDE) announced its results for the first quarter of 2016, a period in which the company reached a net profit of 776 million Euros and made significant progress in terms of profitable and sustainable growth.

Commercial activity in the quarter continued to focus on high-value customers and services. As such, accesses at March grew by 1% year-on-year and totalled 321.9 million, with a greater proportion of higher quality customers, who continued to be the main lever for growth: mobile contract (+5%), smartphones (+26%), pay TV (+7% organic), fibre and VDSL (+34% organic) and LTE (2.5x). Also, it is worth nothing the sequential improvement of churn, across all services, and average revenue per access (+5.2%).

Digital Services

Video revenues totaled 665.4 million euros, up 17.3% vs. the first quarter of 2015 and improved by 3.3 percentage points their year-on-year change vs. the fourth quarter of 2015. Pay TV accesses totalled 8.4 million at March (4.5 million satellite TV).

Pay TV accesses (000s)

                                                                    Growth
                      1Q 2015  2Q 2015  3Q 2015  4Q 2015  1Q 2016  Y-o-Y %
                      -------  -------  -------  -------  -------  -------
Spain*                2,139.5  3,595.7  3,583.4  3,671.5  3,727.8     74.2
Brazil**                790.9  1,785.9  1,829.2  1,787.9  1,786.7    125.9
Hispanoamerica        2,536.2  2,648.6  2,741.7  2,812.2  2,850.9     12.4
 Chile                  616.2    634.3    641.0    644.7    645.6      4.8
 Peru                 1,014.5  1,090.1  1,147.7  1,200.8  1,229.6     21.2
 Colombia               429.4    444.2    471.0    488.6    497.4     15.8
 Venezuela and
  Central America       476.1    480.0    482.1    478.1    478.2      0.4
                      -------  -------  -------  -------  -------  -------
Total                 5,466.5  8,030.3  8,154.3  8,271.6  8,365.4     53.0

* From the second quarter of 2015, Pay TV accesses include DTS.
** GVT accesses are consolidated from 1 May 2015.