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Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on TELEFONICA SA. We currently have 5 research reports from 1 professional analysts.

Date Source Announcement
01Dec16 04:57 RNS TEF - Scrip Dividend Results
15Nov16 05:22 RNS TEF - Sale of Telefé to Viacom International Inc
11Nov16 12:44 RNS TEF - Scrip Dividend + Informative Document
08Nov16 07:00 RNS TEF - Moodys Credit Rating of Telefónica
27Oct16 08:56 RNS Doc re. Presentation on Quarterly Results
27Oct16 08:44 RNS Scrip Dividend
27Oct16 08:19 RNS 2016 Third quarter financial results
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Q3 slightly better than Q2 but dividend is cut by 25%

  • 31 Oct 16

Q3 revenues were down organically by 0.2% yoy (at constant forex), exactly like in Q2 while they had grown by 3.4% yoy during Q1. The adjusted EBITDA which had increased by 5.5% in Q1 and grew by only 0.8% in Q2 was however up again by 3.1% yoy in Q3. Note that, this quarter, the currency impact was still strong in South America, except in… Brazil: South American revenues, which grew organically in current currencies by 4.1% yoy in Q3, were still down by 13.9% yoy in reported terms while Brazilian revenues which were up by a modest 1.1% (like in the previous quarters) were up by 7.9% in reported terms. Global Q3 revenues and EBITDA were down by respectively 6% and 1% yoy in reported terms. Telefonica has reiterated its guidance for 2016: - organic revenue growth which should be >4% yoy with an EBITDA margin stable vs 2015 (remember that this guidance assumes constant exchange rates as of 2015 and excludes Venezuela with its hyperinflationary adjustments and O2); - capex/sales should be at around 17%. This, however, enables Telefonica to have the most extensive ftth network in Spain (16.4m premises passed) and to reach 16.9m premises with fibre in Brazil, or an LTE penetration in Europe of 86% (> 90% in Spain and UK but only 77% in Germany) and 49% in Latin America; The key point of the release is that to recover money via its subsidiaries on the market (both its towers (Telxius) and O2 (UK mobile) could not be floated or sold at proper prices) in a tough context, the group has decided to modify the dividend to strengthen its balance sheet and intensify organic deleverage, maintaining however an attractive level of shareholder remuneration. The dividend should be €0.55 in 2016 (still a yield above the 5%) vs €0.75 in 2015.

A disappointing Q2

  • 28 Jul 16

Q2 revenues were quite disappointing, down organically by 0.2% yoy (at constant change) while they have grown by 3.4% yoy during Q1. The adjusted EBITDA which had increased by 5.5% in Q1, grew by only 0.8% yoy. Note this quarter, the currency impact was still strong: the South American revenues, which grew organically in current currencies by only 2.3% yoy in Q2 (vs 7% during Q1!), were still down by 12.5% yoy in reported terms. And the value of Telefonica unfortunately follows the evolution of these currencies as the South American revenues weighed 50% of Telefonica’s global business. Global Q2 revenues and EBITDA were down by 7/8% yoy in reported terms. Telefonica has, however, reiterated its guidance for 2016: - organic revenue growth in line with our model which should be >4% yoy with an EBITDA margin stable vs 2015; - the capex/sales should be at around 17% vs 16% in our model. This, however, enables Telefonica to have in Spain the most extensive ftth network (15.7m premises passed) and to reach more than 17m premises with fibre in Brazil, or achieve an LTE penetration in Europe of 85% and 45% in Latin America; Note also, from Q2 16, Telefonica’s operations in the UK are no longer reported as discontinued operations within the Telefonica Group and all its assets and liabilities have ceased to be reported as “held for sale”, and have been reclassified back into full consolidation within Telefonica’s financial statements.

A not so bad Q1 at... constant change

  • 02 May 16

Q1 revenues grew by 3.4% yoy organically and at constant change while the adjusted EBITDA increased by 5.5%. These results are quite similar to those in H2 2015 and were expected. But this quarter, in addition to the Brazilian real which has continued to fall vs the euro, the Argentine peso has affected the global revenues of Telefonica by 2.2% (the currency sank by 40% after the country lifted its currency controls at the end of 2015). The South American revenues, which grew organically in current currencies by 7% yoy during Q1, were indeed down by more than 15% yoy in reported terms. And the value of Telefonica unfortunately follows the evolution of these currencies as the South American revenues weighed for 50% of Telefonica’s global business. Global Q1 revenues and EBITDA were down by 6.5% yoy in reported terms. The new CEO José Maria Alvarez-Pallete said also that concerning the sale of O2 UK to Hutchison “a negative decision could not be disregarded”. The group would talk to other buyers if the deal were blocked by the European competition authorities. There were also a number of options for the business such as a full or partial sale or a flotation. Of course, it does not encourage buying the stock. Telefonica has also reiterated its guidance for 2016: - organic revenue growth in line with our model which should be >4% yoy with an EBITDA margin stable vs 2015; - the capex/sales should be at around 17% vs 16% in our model. This would however enable Telefonica to have in Spain the most extensive ftth network (14.3m premises passed) and to reach more than 17m premises with fibre in Brazil, or achieve an LTE penetration in Europe of 75% and 43% in Latin America; - the dividend for 2016 should be €0.75 per share.

A quite solid year excluding the forex impact

  • 07 Mar 16

Q4 revenues grew by 4% yoy organically and at constant change while the adjusted EBITDA increased by 3.8%. These results are quite similar to those in Q3 and were expected. Note, however, that the Brazilian real has once again weighed on the Brazilian reported figures (with a 9.2% yoy revenue decline despite 3.5% organic growth in local currency). The reported Q4 EBITDA was also affected by an exceptional provision for restructuring of €3.15bn (of which €2.9bn in Spain). This corresponds to a Voluntary Employment Suspension Plan offered to Telefonica’s workers as an early retirement plan. “The estimated run rate of savings in direct expenses is approximately €370m from year two,” said the company. This announcement comes after the company revealed at the end of last year that it had reached a deal with Spanish trade unions for the period 2015-2017 encompassing all the units in Spain and affecting a total of around 26k of its employees. The agreement included the right to take up voluntary redundancy from the age of 53 and a guaranteed wage increase of 4% plus bonuses amounting to €1,000 over the next three years. Telefonica has also announced its guidance for 2016: - organic revenue growth in line with our model which should be >4% yoy with an EBITDA margin stable vs 2015 (vs a slight improvement in our model); - the capex/sales should be at around 17% vs 16% in our model. This would however enable Telefonica to have in Spain the most extensive ftth network (14.3m premises passed) and to reach more than 17m premises with fibre in Brazil, or achieve an LTE penetration in Europe of 75% and 43% in Latin America; - the dividend for 2016 should be €0.75 per share (but subject to the closing of the sale of O2 UK) while an amortisation of treasury stock for a total of 1.5% of the capital will be proposed at the 2016 AGM.