Telefonica Q219: anaemic growth in results; best is increase in cash flow (+4%)

Telefonica published its Q219 results. According to Bankinter market watchers, they are slightly better than expected: Income +0% to 12.142 Bn€ vs 11.981 Bn€ expected by the consensus. Operational profits -12% to 1.802 Bn€ vs 1.755 Bn€. Net profits -4.5% to 862 M€ vs 880 M€. Net debt 40.230 Bn€ vs 40 Bn€.

By divisions, Spain generated income of 3.175 Bn€ (vs 3.181 Bn€ expected), +0% compared to Q218. Incomes in Germany increased +1.6% to 1.785 Bn€ (vs 1.761 Bn€, UK +5% to 1.72 Bn€ (vs 1.7 Bn€), Brazil -2.2% to 2.467 Bn€ (vs 2.473 Bn€ and Latin America North and South -3% to 1.743 Bn€ and -1.2% to 1.014 Bn€ respectively. The average of the consensus expected 1.653 Bn€ and 969 M€ for these two divisions.

For Bankinter analysts, the growth in terms of the results is anaemic. The best part of the results was the increase in operational cash flow (+4% to 3.635 Bn€ in Q219. With investments of 842 M€, the free cash flow increased 67% to 2.793 Bn€.