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TEF’s Robust Revenue Growth Trend in Argentina Continued in 4Q15

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Telefónica’s revenue in Argentina in 4Q15

Year-over-year (or YoY), Telefónica’s (TEF) revenue in Hispanic America rose organically by ~8.1% to ~3.6 billion euros in 4Q15. The largest contributor to this segment’s revenue was Argentina.

Organically, the telecom company’s revenue rose robustly by ~18% YoY to ~1 billion euros in this geography during 4Q15. YoY revenue growth in the fixed services component in this market continued to outpace the mobile component during the quarter.

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Telefónica’s fixed revenue in Argentina

On an organic basis, Telefónica’s fixed services revenue in Argentina rose by a significant ~19.6% YoY to ~0.34 billion euros in 4Q15. The broadband and new services component drove this robust revenue growth during the quarter. YoY, this dominant revenue stream grew by a significant ~26.7% to reach ~0.2 billion euros in 4Q15.

Meanwhile, organically, Telefónica’s voice and access revenues rose ~7% YoY to reach ~0.12 billion euros in this market during 4Q15.

Telefónica’s fixed services connections in Argentina

TEF’s fixed broadband connections in Argentina rose marginally by ~0.6% YoY to ~1.9 million at the end of 4Q15. On a net basis, the company added ~3,700 connections in this component during the quarter. Meanwhile, Telefónica’s fixed telephony accesses in this geography fell by ~1.9% YoY to ~4.6 million in 4Q15.

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). XT 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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