Telefónica closed 2022 with a profit of 2,011 million euros, which contrasts with the extraordinary profit of 8,137 million that it reached a year ago due to the sale of Telxius towers and the merger with a British subsidiary. Excluding this effect, Telefónica’s net result in 2022 was 1,937 million euros, so the profit increased by 4%, in line with what was expected by the consensus of analysts.
The results presented this Thursday by the Spanish telecommunications operator at the National Securities Market Commission (CNMV) show revenues of 33,993 million, 1.5% more, and according to said communication, “represent the first growth in revenues since 2015”.
“We are very satisfied with the transformation that the company is carrying out and we are well positioned to continue on this path of profitable growth. In 2022, Telefónica has once again demonstrated its solidity, its commitment to its objectives and its ability to overcome changing environments. more complex. In 2023 we will continue to maintain the current financial discipline and continue to prioritize investments in connectivity projects. For Telefónica, responding to the new demands of the digital age is not an option; it is the option”, highlights José María Álvarez- Pallete, president of Telefónica.
The operating result before taxes and extraordinary, a metric that Telefónica calls oibda, (similar to ebitda) stood at 12,852 million, 41.5% less, 3% without taking into account the impact of the extraordinary in 2022. All these indicators are in line with the forecasts announced by the company. Revenues grew in all its geographies, including Spain where they were 0.6% higher than the previous year.
Telefónica closed 2022 with a free cash flow of 4,566 million euros, 72.5% higher than the previous year. Free cash flow per share reaches 0.80 euros and comfortably covers the annual dividend of 0.30 euros per share, which is maintained. In turn, the company will propose to the Shareholders’ Meeting a capital reduction of 0.4%.
In a difficult macroeconomic environment, it prevented Telefónica from continuing on the path of debt reduction that the company began after the arrival of Álvarez Pallete to the presidency. In 2022 it closed with a total of 26,687, 2.3% above the previous year.
The company explains that “it continues to take steps to manage the challenging current macroeconomic context and the rises in interest rates. More than 80% of the debt is at a fixed rate and has maturities of the next three years covered.”