6.75 0.00 (0.00%)
After hours: 4:17PM EST
|Bid||6.74 x 36200|
|Ask||6.75 x 43500|
|Day's range||6.72 - 6.85|
|52-week range||6.50 - 9.01|
|Beta (5Y monthly)||0.96|
|PE ratio (TTM)||10.61|
|Forward dividend & yield||0.44 (6.33%)|
|Ex-dividend date||16 Dec 2019|
|1y target est||9.05|
(Bloomberg) -- Telefonica SA reported profit that missed estimates, highlighting that a plan to reinvent itself globally is nevertheless vulnerable to increased competition in Spain, its biggest market.The phone company reported operating income before depreciation and amortization of 3.67 billion euros ($3.96 billion euros) in the fourth quarter, falling short of the 4.18 billion euros forecast by analysts. Impairments from Mexican and Argentine operations, along with staff cuts and other restructuring measures, were a drag on earnings.The carrier, based in Madrid, is pledging to maintain sales growth and cut debt as it undergoes a shift to focus mainly on four key markets. Investors have been punishing the company, with its shares down about 15% over the past year compared to a 7.3% increase for the Stoxx 600 Telecommunications index. The slide prompted Chairman Jose Maria Alvarez-Pallete to announce in November a new strategy to focus on Spain, Brazil, the U.K. and Germany, which generate the bulk of sales, and place other Latin America activities into a separate division.Telefonica shares fell 4.9% to 6.22 euros at 10:09 a.m. in Madrid. Thursday’s report flagged the difficulties the company has in the region, an area once seen as a potential engine of expansion. Oibda in the quarter was hit by a combined 445 million euros of impairments from Mexico and Argentina. A further 266 million euros of impairments came from staff cuts and other restructuring measures, part of the broader move to streamline the company.Performance in Spain raised some points of concern for analysts including Nawar Cristini at Morgan Stanley and Michael Bishop at Goldman Sachs Group Inc. Growth in average revenue per user slowed to 0.2% from 1.6%, while revenue from the consumer division dropped 1.2%.The company faces increased competition from Orange SA and attacks from Vodafone Group PLC and Masmovil Ibercom SA at the lower end of the market. Revenue growth in the country gained 0.4% overall, helped by business sales.On Thursday it forecast stable earnings and revenue for this year after reporting a mixed result for 2019: profit gained 1.9% while sales increased 3.2%; the company had guided for growth of about 2% in both cases.A bright spot in the quarterly report was the decline in net debt for an 11th straight quarter, to 37.74 billion euros, indicating that Pallete is continuing a push to lower leverage with cash generation.(Updates share price in fifth paragraph, adds details on Spain in eighth.)To contact the reporter on this story: Rodrigo Orihuela in Madrid at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares in Spain's Telefonica dived in opening trade on Thursday, leading losers on Madrid's blue-chip index after the company posted a sharp fall in net profit mainly due to an expensive layoff programme in its home country. Along with its peers, Europe's fourth-largest telecoms group is battling to boost profit growth in an increasingly crowded market, and promised to reinvent itself in November. As part of the turnaround plan, Telefonica offered early retirement to employees aged 53 or over in Spain, contributing to 2.2 billion euros in restructuring provisions that led to a 66% fall in reported full-year net income.
For an event meant to showcase the power of telecoms, cancelling this year's Mobile World Congress in Barcelona without a back-up plan has perplexed many in the trillion-dollar sector. Wednesday's decision to call off the telecoms industry's biggest annual gathering over fears of coronavirus, which has yet to reach mainland Spain, has left a hole in marketing budgets and dealt a $500 million blow to the local economy. Sony and Nokia said after pulling out of the event that they would hold product launches online instead, while South Korea's Samsung Electronics showcased a new folding phone at separate event in San Francisco last week.
The decision to cancel a major telecoms conference in Barcelona slated for later this month after mass withdrawals due to fears over a coronavirus outbreak was motivated only by a desire to protect people's health and safety, organisers said on Thursday. "This is not about money - it's about health and safety and the reputation of our show," Mats Granryd, director general of the GSMA telecoms association that hosts the event told a news conference the day after announcing its cancellation.
Spanish health officials said on Wednesday there was no reason to cancel the Mobile World Congress in Barcelona over coronavirus fears, despite major companies pulling out of the event. National Health Minister Salvador Illa said the government's goal was protecting people's health, but that it would take additional measures if necessary. The assurance came after behind-the-scenes pressure on Spanish authorities to declare that holding the event in Barcelona would pose a public health risk, which could potentially in turn trigger a payout on any event insurance taken out by the organisers.
The organisers of the Mobile World Congress (MWC) said on Wednesday they were monitoring "the fast-changing" development of the coronavirus, in a statement issued after sources said the event in Barcelona was likely to be called off. "We have already implemented additional health measures ahead of MWC 2020 and will continue to seek expert medical advice on a frequent basis," it added.
Telecoms industry lobby GSMA will hold a virtual board meeting on Wednesday to discuss a major conference later this month which is looking increasingly threatened by fears of coronavirus, a person with knowledge of the matter said. Board members of the GSMA will discuss the Barcelona conference by phone at 1300 GMT, according to the person, who declined to be named.
Deutsche Telekom is pulling out of this month's Mobile World Congress, a source familiar with the matter said on Wednesday, adding an official announcement by other European telecoms operators was possible later in the day. Such a step, if confirmed, would deal a fatal blow to the Feb. 24-27 that traditionally draws 100,000 visitors to Barcelona, as European operators are foundational members of the GSMA industry association that hosts the event. The GSMA board, comprising industry executives, will convene on Friday to review its options, sources said.
Britain's decision on whether to allow Huawei to supply equipment for 5G mobile networks comes at a delicate time, with debate raging in European capitals over the security implications of reliance on Chinese technology. In Germany, Chancellor Angela Merkel's preference for applying the same rules to all equipment vendors faces growing resistance from lawmakers in her own party, who back U.S. calls to ban Huawei outright. Europe's leading telecoms operators, who are all Huawei customers, are lobbying against an outright ban.
Ciena (CIEN) provides its much-acclaimed WaveLogic 5 Extreme technology to Telxius to deliver high-end programmability and networking solutions across long-haul set-up and submarine applications.
The approval from the regulatory agency is likely to strengthen the market position of BCE's Bell Canada and enable it to thwart the growing menace of unwanted spam calls.
With specialized routing and intuitive search capabilities, Comtech (CMTL) offers the iconic motorcycle manufacturing firm a competitive edge over rivals for an unrivalled biking solution.
Cincinnati Bell (CBB) teams up with YouTube TV to deploy the latter's on-demand streaming services in Greater Cincinnati and Hawaii through cost-efficient content platform.
Spain's Telefonica plans to drastically reduce the amount of equipment it buys from Chinese technology giant Huawei [HWT.UL] for the core of its next-generation mobile networks in Europe, its Chief Technology and Information Officer (CTIO) said. Choosing manufacturers for network equipment has become a political hot potato since Washington imposed an export ban on Huawei, the global market leader, but Telefonica's shift away was "a purely technical decision", CTIO Enrique Blanco said. Until now, Telefonica has relied entirely on Huawei for its core 4G networks in key markets of Spain and Germany, but under the new strategy, this will disappear by 2024.
British electricals retailer Dixons Carphone stuck to its forecast for annual profit and said a plan to cope with the challenging mobile phone market was working, but it wasn't counting on any post-election boost. It reported a drop in first-half profit of 60 percent, though it maintained its financial guidance for its full 2019-20 year. UK voters headed to the polls on Thursday in an election that could break the impasse over Britain's exit from the European Union, but Dixons Carphone chief executive Alex Baldock said that political clarity wouldn't necessarily help consumer confidence.
Telefonica Deutschland picked Nokia of Finland and China's Huawei on Wednesday to build its 5G network, seeking to get work moving even though Germany has yet to finalise security rules governing equipment suppliers. The decision by the unit of Spain's Telefonica comes amid heated debate in Germany over whether to heed U.S. warnings that Huawei poses such a serious security threat that it should be excluded from critical network infrastructure.
Telefonica Deutschland, one of Germany's three main mobile operators, said it would cut its dividend as it prioritises investing in upgrading its network over the next three years. The unit of Spain's Telefonica said it would propose a dividend of 0.17 euros ($0.19), down from 0.27 euros last year, following similar dividend cuts by competitors Deutsche Telekom and Vodafone.
Telefonica will buy some of the core equipment for its planned 5G mobile network in Spain from Chinese telecoms giant Huawei but also choose a second provider next year, a company spokesman said on Friday. The move, first reported by Spanish economic daily Expansion, marks a strategic shift for Telefonica which previously relied only on Huawei. The Chinese company provided Telefonica's 3G and 4G core networks in Spain.
The radical restructuring process is likely to feature an "operational spin-off", whereby Telefonica (TEF) will create two separate business entities, namely Telefonica Tech and Telefonica Infra.