Telefonica strengthens its FTTH and IPTV networks and loses DTH in 2019

On its January-December 2019 period results report, Telefónica reported that Vivo, its subsidiary in Brazil, has 36% of the broadband accesses already connected to its FTTH network, which already reaches 11 million HPs. Likewise, the company reported that IPTV accesses grew 23% year-on-year and recorded 715 thousand, and also remarked that, in Q4 2019, Vivo’s revenues growth in part supported by FTTH’s revenues and IPTV, which had an increase of 37.8% and 22.2% respectively, compared to 2018. In addition, Brazilian Pay TV recorded a total of 1,319.7 thousand accesses, that is, 246.9 thousand less than Q4 2018, when 1,566.6 thousand accesses were recorded.

In the Hispam Sur region (under which Telefónica groups Argentina, Chile and Peru), Q4 2019 revenues were valued at €1,599 million (USD 1727.3 million). Pay TV accesses in Argentina were valued at 153.2 thousand, with a quarterly net profit of 23 thousand. In turn, Movistar Play, launched in the country in March 2019, has 159 thousand active accesses as of December 2019. On the other hand, Telefónica’s fixed business in Peru continues to focus on the deployment and connection of access to fiber, thus the FTTx and cable accesses increased 16% year-on-year after reaching 1.7 million connected (1.6 million connected with FTTH and cable). Pay TV accesses stand at 1,505 thousand, and the Movistar Total convergent offer (launched in January 2019) already has 203 thousand customers, while the OTT Movistar Play ended the year with 573 thousand active accesses. In turn, in Chile, Movistar records 523.3 thousand accesses to pay TV, with a decreasing trend compared to Q4 2018, when the figure amounted to 651.3 thousand. The company also noted an increase in ARPU broadband of 7% annually.

The Hispam Norte region (which, according to Telefónica, covers Colombia and Mexico), records an annual growth in revenues for Telefonica Colombia. The company highlights, among other factors, the repositioning of fiber offers and, in terms of pay TV, the rise of IPTV accesses to 80 thousand (15% of total pay TV), partially offsetting the drop in DTH (18 %). Access to pay TV recorded by Telefonica Colombia at December 2019 were 528.1 thousand, while in the same month of the previous year the accesses recorded were 548.2 thousand. In addition, in the region, Telefonica highlights that the Movistar Play offer has 410 thousand active users as of December.