The ‘telecos’ entered 4.7% less in the confinement despite using more

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Madrid, Aug 2 (EFECOM) .- Telefónica, Orange, Vodafone and MásMóvil entered this second quarter of 2020 in Spain with 5,691 million euros, 4.7% less than in the same period last year, despite the increase in use phone and internet during confinement.

The one that saw its income drop the most in Spain from April to June compared to the same period last year was Vodafone, which billed 8.2% less and stayed at 994 million euros; followed by Orange, with 6.8% less and registered 1,216 million, and Telefónica, which fell 5.2% and invoiced 3,028 million euros.

Unlike the other three, the fourth operator, MásMóvil, again registered an increase in revenues of 10% and stood at 453 million euros.

If MásMóvil is left aside, the other three companies decreased their turnover by 5.84%, achieving 5,238 million euros in revenue.

During this quarter, all of them reported an increase in the consumption of voice, data and internet calls, although they also showed a decrease in device sales due to the closure of establishments. The ban on portability during the state of alarm and higher spending related to the measures implemented by covid, also affected its results, according to the companies who agreed during the presentation of their results.

The price war in the sector has had a negative impact on the turnover of telephones, although this is not a novelty for the quarter, but rather comes from behind.

REVENUES FELL 6.69% GLOBALLY

Globally, the three main operators (Telefónica, Orange and Vodafone) reported revenues of 25,439 million euros, 6.69% less than in the same quarter last year.

Of all of them, the one that saw the most decrease its income was Telefónica, which with 10,340 million, fell by 14.8%, in a quarter in which the Spanish multinational was overtaken by the Vodafone group in terms of turnover. The British company billed 10,506 million euros, after lowering revenue, but less than Telefónica – 1.4%.

On the contrary, Orange registered an increase in income of 2.7%, with 4,593 million turnover in this second quarter of the year.

In this international context due to the coronavirus, Telefónica was also affected by the currency exchange, which had an impact in its second quarter of 297 million euros on its turnover, as recalled by its president, José María Álvarez-Pallete, in presentation of results.

SURPRISE FOR THE BEHAVIOR OF TELECOS

XTB analyst Joaquín Robles has spoken on this matter in statements to EFE and has been “surprised” by the results and behavior on the stock market of operators in this context of coronavirus, in which they have registered an increase in demand, among other reasons for teleworking.

He has mainly referred to Telefónica, a company that continues to reduce debt, which continues to be above its capitalization given the decrease in its market value, as he recalled.

The fall in the Telefónica stock market is also in line with what the telephones are registering in Europe, where they have made significant investments in infrastructure that for the moment have not been able to make a profit, as explained.

In Spain, they are also affected by the price war in the sector, which causes lower incomes and profitability.

3% LESS THAN IN THE LAST QUARTER

If we compare with the last quarter, Telefónica, Orange, Vodafone and MásMóvil, entered 3% less from April to June than from January to March 2020, when they billed 5,867 million euros.

In this first trimester, the coronavirus affected especially in the second half of March. Even then, the Chairman of Telefónica warned that the negative effects of covid-19 would be more noticeable in the second quarter.

Pallete explained that as of June, an improvement has been perceived considering that 100% of the stores were open.

IN JUNE, CONSUMPTION IS EVEN HIGHER THAN BEFORE THE PANDEMIC

In mid-June, the use of the telephone, landline and mobile, for calls and the internet, was around a quarter above the level it had in Spain before the coronavirus pandemic, according to the information provided by the four main operators.

Belén Molleda

(c) EFE Agency

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