Telefónica posted net profit of €145 million in the fourth quarter of 2016, up from a loss of €2.2 billion in the same period a year ago.
Revenue slipped one percent to €13.7 billion in reported terms but climbed 2.7 percent on an organic basis.
The Spain-based operator said it was benefitting from major restructuring a year ago, which would ease the pressure on capital expenditure through 2017, and see the company post similar growth and margins.
Jose María Álvarez-Pallete, Executive Chairman of Telefónica (pictured above), said Q4 had seen an “acceleration of growth rates in main operational metrics” across the group.
“For 2017 we expect similar operating trends: revenue stability despite higher regulatory impacts mainly in European markets, OIBDA margin expansion and lower capex intensity,” he added.
The Q4 results pushed like-for-like revenues up 1.3 percent for 2016 as a whole, although they declined 5.2 percent on a reported basis to €52 billion.
In its home market, service revenues returned to growth in 2016, rising 1.1 percent to €12.2 billion.
However, sales in Germany were down 4.9 percent to €7.5 billion, while the UK registered a 1.5 percent decline to €6.9 billion.
There was better news in Latin America, where revenues were up 0.9 percent to €11.1 billion and the rest of the operator’s businesses in the region posted a combined 7.5 percent increase on a like-for-like basis.
Across the board, video revenues jumped 12.4 percent to reach €2.8 billion, as data traffic growth grew by 49 percent.
All told, Telefónica’s customer base grew one percent to hit the 350 million milestone.
Meanwhile, net income jumped from €616 million in 2015 to €2.4 billion last year.
Earlier this week, the operator confirmed the sale of a 40 percent stake in its Telxius arm to private equity firm KKR for €1.275 billion.