uploads///Telecom Telefonicas Mobile Accesses in Argentina

What Drove TEF’s Mobile Revenue in Argentina in 4Q15?

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Dec. 4 2020, Updated 10:52 a.m. ET

Robust growth in Telefónica’s mobile revenue in Argentina

In the local currency, Telefónica’s (TEF) revenue in Argentina rose ~18% YoY (year-over-year) to ~1 billion euros during 4Q15. The growth trend in Telefónica’s mobile revenue in this market continued during the quarter.

On an organic basis, this revenue stream increased robustly by ~17.2% YoY to reach ~0.64 billion euros. Meanwhile, this stream’s mobile service revenue component rose ~16.6% YoY organically to ~0.54 billion euros in 4Q15.

The unit contribution of customers drove the growth in Telefónica’s mobile service revenue in Argentina during 4Q15. In this market, the company’s mobile ARPU (average revenue per user) rose ~12% organically YoY during the quarter.

During the quarter, the data revenue stream of the company’s mobile component rose significantly by ~30.2% organically YoY to reach ~0.25 billion euros in Argentina.

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Prepaid component supports Telefónica’s mobile customer growth in Argentina

YoY, by the end of 4Q15, Telefónica’s mobile subscribers rose by ~1.8% to reach ~20.4 million in Argentina.

YoY, Telefónica’s contract customers in Argentina fell ~1.6% to reach ~7 million at the end of the quarter. In this component, the net addition of customers was ~111,000 during the quarter.

Meanwhile, the telecom company’s prepaid customers in Argentina grew by ~3.7% YoY to ~13.4 million at the end of 4Q15. In this component, the net additions of customers were ~449,000 during the quarter.

Instead of direct exposure to TEF, you can take diversified exposure to the company and some of its peers in Europe by investing in the iShares Exponential Technologies ETF (XT). The ETF held a combined total of ~2% in Telefónica, Vodafone (VOD), Deutsche Telekom (DTEGY), and Orange (ORAN) at the end of December 2015.

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