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

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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€.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.