Telefonica released a mixed Q1 with a solid 4.9% yoy organic revenue growth but an EBITDA up by only 1.1% due to higher energy costs and personnel expenses. Capex was however down by 0.7% and EBITDA less Capex was therefore up by 2.1%. Cash flow should grow modestly in 2023 and we are thus comfortable with the dividend for 2023. We maintain our opinion at buy on the stock.
11 May 2023
Cash flow should improve in 2023 despite the inflationary pressures on EBITDA
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Cash flow should improve in 2023 despite the inflationary pressures on EBITDA
Telefonica released a mixed Q1 with a solid 4.9% yoy organic revenue growth but an EBITDA up by only 1.1% due to higher energy costs and personnel expenses. Capex was however down by 0.7% and EBITDA less Capex was therefore up by 2.1%. Cash flow should grow modestly in 2023 and we are thus comfortable with the dividend for 2023. We maintain our opinion at buy on the stock.