Strong performance from UK mobile operator O2 led owner has helped Telefonica double its growth forecast for the year.
Revenue at the Spanish telecoms giant should prove to be two per cent higher this year, after doubling its previous one per cent estimate.
O2 helped the company push up its prediction after seeing UK revenues grow some eight per cent year on year to €1.7bn (£1.5bn) in the third quarter of 2018.
Higher smartphone sales underpinned this growth, as people flocked to take advantage of O2’s more flexible ‘custom plans’ tariff, which allows them to pay over as long as 36 months, as well as impact of the retail price index growth on airtime rates in April.
The UK operator also posted organic growth of 5.5 per cent to €4.9bn for the year to date – much stronger than expected – and added 120,000 contract customers in the period.
As a whole, Telefonica managed to slash debt by €957m, the sixth straight quarter it has cut it, as it generated cash flow of €1.4bn.
José María Álvarez-Pallete, executive chairman, said: “Improved growth trends, robust and solid business third quarter and our good operating positioning in key markets allow us to upgrade our revenue growth guidance set for 2018.”