Telefonica reached a non-binding agreement with Vodafone, which expands the current deal on sharing networks in the UK. The objective is to extend the duration and to include 5G. Both operators also want to modernize their fibre optic networks. The agreement depends on concluding the legally binding terms and securing the necessary regulatory approvals, which is expected to happen during 2019.
The operator may have opted for dividing its assets in the region to facilitate their sale. Specifically, America Movil would be interested in the subsidiaries in El Salvador and Guatemala, and both Millicom and AT&T in the rest (Costa Rica, Nicaragua and Panama).
Alphavalue | Between May 2017 and September 2018, Telefónica´s stock price has fallen -37.5% before recovering +20% in the last three months.
The European Commission authorise the merger in Holland between Tele2 and Deutsche Telekom without preconditions , which drove the European teleco sector yesterday. Until now the Commission had shown itself radically opposed to allowing corporate operations which imply a reduction from four to three in the number of operators in a country.
Telefonica posted a profit of €2,721 M in the first nine months of the year, which represents an improvement of 11.6% compared to the same period a year ago.Net debt reduced for the sixth consecutive quarter and stood at €42,636m at the end of September. This fall represents a reduction of nearly 10% year-on-year.
Telefonica has secured the rights to show the Champions League and the Europe League. It has acquired the rights of Mediapro for the next three seasons (2018/2021) for 1.08 billion euros.
New Telefonica’s commercial brand in Spain O2 will aim to cover all segments of the low and medium cost market where the entry of Masmovil has caused competition. Masmovil gained 201,000 new lines in April, while Telefonica gained 1,200 new connections, Orange lost 1,900 lines and Vodafone 4,500.
Telefonica posted a 7.4% rise in net profit in the first quarter of 2018 to 837 million euros from a year earlier. The figure beat FactSet’s analysts consensus for net profit of 800 million euros. But revenues fell 7.2% to 12.19 billion euros, as currency pressures offset improvements in the group’s home market.
Telefonica is starting the process of preparing a stock market listing for a stake in its currently fully-owned Argentine subsidiary. In the upcoming AGM on April 16, it’s expected that authorisation will be sought from shareholders to go ahead with the share placement.
In three months, Barclays has cut its price target for Telefónica on four occasions, from 9,8 euros/share in December to 9 euros/share last time round, on March 19. That’s almost 10% lower. How can a company’s value change so much in such a short space of time?