Telefónica del Perú revenues amounted to S/7,156 million in 2022

The total revenue of Telefónica del Perú in 2022 amounted to S/7,156 million, a growth of 1.5% compared to 2021, mainly due to higher revenues in the postpaid mobile segment (+6.7%) and in the fixed segment of data and IT services (+6.8%), which reflects its solid presence in the market through its B2B services, the company specifies.

“2022 reflects that we have a strategy aimed at continuing the growth that has been happening since 2021, in the midst of a challenging economic and competitive context. This growth has been sustained in the mobile business. In addition, we continue to lead the main technological change in the country through the massive deployment of fiber optics to the home to offer a better fixed internet experience”, said Pedro Cortez, CEO of Telefónica del Perú.

Telefónica del Perú closed 2022 maintaining the leadership in revenue in the sector and in accesses with 15.8 million customers, made up of 11.3 million mobile accesses and 4.5 million fixed accesses.

Mobile business rises by 6.7%

In the case of the mobile business, revenues reached S/3,722 million in 2022, 6.7% more than in 2021. In the postpaid service, revenues of S/1,895 million were recorded, an increase of 11.1% with compared to the previous year. For its part, in prepaid, revenues fell 5.9% compared to 2021 due to the contraction and the market trend to migrate from prepaid to postpaid services.

It should be noted that Telefónica was the operator that grew the most in portability of postpaid origin (+21.6%), managing to increase its participation by 2.6%. The company maintained leadership in the mobile market with a 30.1% access share, according to Osiptel data for the third quarter of 2022.

In the case of the fourth quarter, mobile revenues amounted to S/949 million (+4.4% over the similar period of 2021). This result was driven by higher revenues from the postpaid service (+9.6%) and the maintenance of revenues in the terminal business.

In the terminal business, Movistar recorded income of S/967 million through a strategy that focused on providing financing facilities and new payment alternatives for its customers.

Fixed business fell by 3.5%

In the fixed business, in 2022, revenues reached S/3,435 million, 3.5% less compared to 2021, and in the fourth quarter they reached S/845 million, 9.5% less than the similar period of the previous year. These lower revenues are mainly explained by the strong competitive environment of the operators and by the fact that Telefónica is in the process of transforming its provision of broadband services towards fiber in order to achieve national leadership in Peru.

Telefónica leads the fixed broadband market with a 54.09% share at the end of 2022. It also has a 59.4% share in fixed voice and 58.1% in Pay TV, according to Osiptel data for the third quarter of 2022.

tax controversy

In January 2023, Telefónica del Perú was notified of various rulings issued by the Supreme Court that unfavorably resolved processes followed with the National Superintendence of Tax Administration (SUNAT) referring to Income Tax. Precisely, in 2022, the company increased its provisions by S/1,045 million to face the results of the tax controversy.

It should be noted that the total number of these rulings corresponds to more than 80% of interest and arrears, a consequence of the delay on the part of the authority in addressing a legitimate controversy, the company maintains. During his more than 28 years in the country, Telefónica del Perú has paid close to S/10,000 million in income tax to Sunat.

Net result from the exercise

The net result for the 2022 financial year was -S/1,455 million, which is equivalent to S/171 million above what was registered in 2021, mainly explained by the recording of tax provisions corresponding to the unfavorable result of the judicial processes related to the Income Tax from 1998 to 2001, the increase in financial expenses and the devaluation of immobilized assets in 2021.