• Reports accumulated income of S/ 4,527 million
• It is advancing in the transformation of its fixed business and maintains leadership in fiber to the home, a service in which it already has 934 thousand connected customers.
• During this period, Movistar Total was relaunched, which offers the flexibility of contracting fixed and postpaid mobile internet, and the option to complement it with TV and landline telephony.
• Agreed to capitalize loans granted by Telefónica Hispam that were granted to face, among others, lawsuits and litigation with SUNAT
Lima, October 29, 2024.- Telefónica del Perú (TdP) reported accumulated revenues of S/ 4,527 million in the first nine months of 2024, which represents a decrease of 7.2% compared to the accumulated income of the same period of 2023. This result is a reflection of the transformation of the fixed market, since although the company has achieved leadership in fiber to the home (FTTH) connections, the customer base connected with coaxial cable (HFC) continued to deteriorate. In the mobile market, although the company has increased service revenue compared to 2Q24, historical records for postpaid portability were recorded, with an adverse effect on business margins.
Fixed business
In 3Q24, TdP recorded revenues of S/655 million in the fixed services business (voice, internet, pay TV and IT), 14.2% less compared to 3Q23.
This result is explained by the rapid erosion of HFC connections, despite the accelerated process of migration to fiber optics in which the company is involved and which has led it to lead that market segment. The company currently registers 934 thousand clients connected with fiber, which represents an increase of 43% compared to 3Q23. At the end of 3Q24, the company has fiber coverage, directly or through Pangea, in 4.1 million homes (+46.6% compared to 3Q23).
A Telecommunications User Satisfaction study prepared by Osiptel and presented last June shows a significant improvement of 25 percentage points in satisfaction among Movistar fixed internet users, which shows substantial improvements in the installation process, with impact on churn reduction.
In August, the company relaunched Movistar Total, a proposal that offers the flexibility of contracting postpaid fixed and mobile internet services, with the option of complementing it with TV and landline telephony. Likewise, Movistar continues to promote its IPTV service, an evolution of the Pay TV service that is 100% digital, transmitted via fiber optics and with advanced functionalities.
Mobile business
In 3Q24, TdP recorded revenues of S/ 827.8 million in the mobile business, 6.1% less than in 3Q23. This result is generated by lower revenues in the postpaid segment derived from the intensification of portability, as well as a lower volume of prepaid recharges.
Although Telefónica’s total mobile revenues decreased compared to 3Q23, they showed growth compared to 2Q24, driven by a stable customer base with better performance in service revenues. Postpaid ports (which represent 74% of total ports) reached a historical record and grew 12% compared to 3Q23.
Operation results
Based on a more complex market scenario and an environment of low predictability and legal certainty, an adjustment for asset impairment has been recorded which, added to the negative result of the operation, led to an accumulated net result in the first nine months of the year to -S/2,534 million.
To restore the financial situation, the Board of Directors agreed to capitalize loans granted by Telefónica Hispanoamérica for an amount of S/2,069 million. It should be noted that these loans were granted by the parent company so that TdP could face, among others, lawsuits and litigation with SUNAT.
Other management milestones
On the rural connectivity front, TdP continued to fulfill the infrastructure expansion commitments assumed with the Ministry of Transportation and Communications (MTC) within the framework of the Coverage Fee mechanism. Through this, mobile operators can allocate up to 60% of the payment for the use of the radio spectrum to investments for the installation of 4G antennas in areas of the country without access to connectivity. In the last four years, TdP has installed 150 cellular base stations that benefit more than 94,000 people in 900 rural communities. In 2024 the company plans to install a total of 72 new base stations.
On the customer service front, TdP continues to promote digitalization through self-management tools. In this sense, the Mi Movistar app has registered an average of 11 million monthly queries, which is equivalent to a growth of 15% compared to 2023. Until September, the Mi Movistar app is positioned as one of the preferred channels for customers with 77% 4 and 5 star reviews (No. 1 on iOS and 2nd on Android).
On the other hand, TdP reinforced its commitment to the environment by guaranteeing, through I-REC and AENOR certifications, the use of 100% renewable energy in all its operations nationwide. This is within the framework of the alliance with Statkraft, which ensures that Telefónica’s electricity supply in all its operations comes from renewable sources. In addition, the company reduced its carbon footprint by 95% compared to 2015 and recycled more than 850 tons of electronic waste through the ‘Message to the Planet’ campaign.
