Total Telecom’s Friday Financial Roundup


A summary of all the essential financial news in the telecoms world 

Virgin Media O2 releases Q2 results

Virgin Media O2’s (VMO2) quarterly results, published on Tuesday, revealed a 6.2% increase in adjusted revenue, totalling £2.7 billion. This drove transaction-adjusted EBITDA up 4.6% from the same time last year, to £1 billion.

The revenue increase was due in part to VMO2’s April price rises.

At the same time, however, the results revealed VMO2 had lost roughly 24,700 fixed line customers and 1,500 mobile subscribers.

“Amidst higher costs, rising usage and continued investment, we executed necessary price increases in line with our expectations, with this starting to flow through to our Q2 revenue and EBITDA growth,” said CEO Lutz Schüler.


Cellnex revenue rockets 18% on last year

Europe’s largest mobile tower company announced second quarter revenues of €1.02 billion, an increase of 17.8% on the same period last year, when the number stood at €862 million. The company attributes the increase to the continued posititive momentum of its core business.

Despite a 19.2% rise in operating expenses, adjusted EBITDA was up 17.4 % in Q2.

“We continue to see momentum in the business with strong growth across all of our industrial and financial metrics in the first half of the year,” said CEO Marco Patuano. “We are making good progress towards the objectives we set last November in the “new chapter” for the Group, with a focus on organic growth, positive free cash flow generation by 2024 and achieving investment grade by 2024 as well.”

The firm’s current net financial debt stands at €17.9 billion.


Telefónica’s 44.5% revenue increase

Telefónica’s Q2 results, released yesterday, showed that between April and June the company’s net income rose 44.5% to €462 million, compared to the same period last year.

Total revenue reached €10.1 million, with a growth rate of 0.9% year-on-year.

Net financial debt amounted to €27.5 million at the end of last month, 3.9% lower than last year.

The performance has allowed the firm to review their 2023 financial targets, including doubling their revenue target as they anticipate organic growth of 4%.

“Focused on the customer and the creation of shareholder value, and with technology as a decisive factor to better understand and connect with the world, Telefónica is preparing its 2023-2026 plan with a model of operational excellence based on three pillars: Growth, Profitability and Sustainability,” said Telefónica’s Chairman José María Álvarez-Pallete.


Vodafone’s share price rise after successful Q1

The release of Vodafone’s Q1 results this week demonstrated a successful quarter, causing the share price to rise 4% to 75.5% earlier this week.

Vodafone reported a 3.7% rise in organic revenue growth to €10.7 billion in the first quarter of this year, although reported growth fell by 4.8%. 

The firm’s solid performance in the UK, boosted by April price rises, largely helped to offset poorer performances in other key markets like Germany, where revenue dropped by 1.3%.

“We have achieved a better service revenue performance across almost all of our markets. We have delivered particularly strong trading in our Business segment and returned to service revenue growth in Europe” said CEO Margherita Della Valle.

“Vodafone delivered mixed results today, though with revenue ahead of expectations and the company taking advantage of price rises in April they are more on the positive side,” commented Matthew Dorset, analyst at Quilter Cheviot.


T – Mobile set Q2 record

In the release of its Q2 report on Thursday, T-Mobile announed a gain of 760,000 postpaid mobile customers, its highest increase in the quarter for eight years, and the most in the US mobile industry.

The total customer base grew by 1.7 million to a record 116.6 million at the end of June.

Service revenues of $15.4 billion grew 4% year-over-year, while core EBITDA increased 11% year-over-year to $6.7 billion.

“On the heels of our highest ever postpaid account net additions and industry-leading postpaid and broadband customer growth, we are raising guidance for the third time this year. Our Un-carrier playbook continues to win in this ever-changing competitive and macro-economic climate and our momentum is only getting stronger,” said Mike Sievert, CEO of T-Mobile.

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Also in the news: 

Cellnex names Anne Bouverot as Non-Executive Chairperson
Ericsson may be caught in the middle as Swedish–Iraqi relations sour
Nokia and Tele2 team up for private 5G in Sweden 

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