• Leader in fiber, both in Europe and Latin America: more broadband customers in fiber/cable (61%) than copper
• Growing organically in annual revenues for the first time in 10 years in Spain and record profitability in Brazil
• Largest free cash generation in 4 years (ex spectrum)
• Reduced debt by around €12bn since June 2016
• Proactive portfolio management and optimisation of return on capital employed

Highlights :

• Revenues increased 2.4% y-o-y organic (-6.4% reported) in 2018 to €48,693m. In the quarter, revenues accelerated growth up to 3% y-o-y (-1.9% reported), to €12,917m.
• OIBDA reached €15,571m in 2018 and grew +3.5% y-o-y organic (-3.8% reported). In the fourth quarter grew 2.4% (-9.6% reported).
• Net debt fell for the 7th consecutive quarter and stood at €41,785m as of December 2018 (5.5% y-o-y reduction). Free cash flow excluding spectrum (€5,578m in January-December) rose 5.3% y-o-y.
• Telefónica met 2018 objectives and announces today a new guidance for 2019 (organic):
• Revenues : growing around 2%
• OIBDA : growing around 2%
• CapEx/Sales excluding spectrum: around 15%
• The Company confirms shareholder remuneration for 2018 (second tranche of €0,20 per share to be paid in June 2019); and proposes a remuneration policy for 2019, a dividend of €0.40 per share in cash, to be paid in December 2019 (€0.20 per share) and in June 2020 (€0.20 per share).

José María Álvarez-Pallete, Executive Chairman:

"If I had to define this year 2018, I would define it as the year that passed the halfway mark in the transformation of Telefónica. Today I can assure you that Telefónica is closer to the company we want to be than to the company we were.

Our solid set of fourth-quarter results reflected the improvement in business’ sustainability. Value customers and their average lifetime continued increasing, while both revenue and operating cash flow growth accelerated.

In 2018, we regained customer relevance, resulting in the best-ever figure of customer satisfaction. We continued increasing the weight of high-growing revenues (broadband connectivity and services beyond connectivity) and investing in state-of-the-art technology networks. At the same time, we continued improving the Company's financial flexibility with a solid free cash flow, growing ex-spectrum, which enabled us to reduce net debt for the third consecutive year. And all this, notwithstanding the negative impact from regulation.

This performance, together with the remarkable operating momentum in the initial months of 2019, allow us to announce with confidence our 2019 targets of continue growing in revenues and OIBDA, as we keep the CapEx/Sales ratio stable. In addition, we announce a stable, sustainable and attractive dividend in 2019 of 0.40 euros per share in cash, on the back of a solid and consistent cash flow generation” .

TelecomTV note: Full financial details can be viewed here.