Telefónica’s revenue in Brazil in 4Q15
On an organic level, Telefónica Brasil’s revenue rose ~3.4% YoY (year-over-year) and was ~2.6 billion euros in 4Q15. The growth in the company’s fixed services component outpaced its overall organic revenue growth in the market during the quarter.
Telefónica’s fixed services in Brazil in 4Q15
YoY and organically, Telefónica’s fixed services revenue in Brazil rose ~3.5% to ~1.1 billion euros in 4Q15. The broadband and new services component’s revenue grew organically by ~10.9% YoY to reach ~0.5 billion euros during the quarter.
Meanwhile, organically, Telefónica’s fixed voice and access revenue fell by ~2.3% YoY to ~0.55 billion euros in this market in 4Q15.
Solid growth in pay-TV connections
Organically, Telefónica’s fixed telephony connections in Brazil fell by ~2% YoY to ~14.7 million in 4Q15. Meanwhile, Telefónica’s fixed broadband connections rose organically by ~4% YoY to reach ~7.1 million during the quarter in this market.
According to the company, its pay TV connections increased organically by ~10% YoY to ~1.8 million in Brazil in 4Q15. As per the company, it was able to absorb the entire customer growth of the pay-TV space in this key market in 2015.
Instead of direct exposure to TEF, you can take a diversified exposure to the company and some of its peers by investing in the iShares Global Telecom ETF (IXP). The ETF had ~4.1% of its holdings in Telefónica at the end of December 2015. It held a combined total of ~15.7% in Vodafone (VOD), Deutsche Telekom (DTEGY), and Orange (ORAN) as of the same date.