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.
|14Dec16 12:04||RNS||TEF - Trading of the new shares|
|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|
Frequency of research reports
Research reports on
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.
Growth in Spain for the first time in 7 years
06 Nov 15
Q3 revenues grew by 4.8% yoy organically and at constant change while the EBITDA increased by exactly the same number. Even though this was expected, it is a good performance. Note however that the Brazilian real has once again weighed on the Brazilian reported figures (with a 5.5% yoy decline despite a 5.2% organic growth in local currency).
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 16-01-2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
Small Cap 2017 - The only certainty is uncertainty
18 Jan 17
AIM will turn twenty-two this June and it is fair to say it has had its fair share of ups and downs, with 2016 being a case in point. We ask what will the rest of 2017 hold in store? Arguably the US dollar, Brexit, bonds, and banks will be the four big themes for the new year.