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Telefónica raises its annual targets after earning 7,743 million in the second quarter | News | Operators

Phone has made a file revenue of 7,743 million euros in the second quarter of 2021. This historic result’s a consequence of the capital positive factors from the closing of themerger of O2 and Virgin Media in the UK and of thesale of Telxius towers. In different phrases, two of the main operations carried out to implement the motion plan introduced by the Group in 2019. At the similar time, “the figures achieved in the first half of the yr mirror the favorable results achieved due to the administration utilized, that are being translating right into a progressive return to progress and larger effectivity ”, they level out from the firm.

The closure of those two operations at the starting of June has been mirrored in a web revenue of 8,629 million euros in the first half of the yr. Additionally it is an unprecedented determine, the highest in Telefónica’s historical past, they emphasize.

The completion of those transactions has additionally led to a historic discount of the Group’s web monetary debt. June ends at 26,200 million euros, 29.5% under that of June 2020. In the final 5 years, the firm’s debt has been lower in half, from the greater than 52,000 million euros registered as of June 2016.

Because of the operations of O2 and Telxius, Telefónica has elevated its income and diminished its debt by half

At the similar time, capital positive factors from operations have strengthened the Group’s steadiness sheet, which now has a extra environment friendly capital construction that will increase the high quality of the firm’s worth, with a rise in fairness of greater than 10 billion euros. . Telefónica additionally has a stable liquidity place, which elevated to 26,924 million euros.

“These outcomes present that Telefónica is on the proper monitor, executing its strategic plan as a essential accelerator in the firm’s transformation course of. Telefónica consolidates its management as an organization that takes benefit of all the alternatives provided by the digital revolution, as a accountable, sustainable firm and at all times betting on operational excellence ”, assures the President of Telefónica, José María Álvarez-Pallete.

Telefónica Group outcomes for the first half of 2021.Improve in annual targets

The favorable enterprise efficiency in the first half of the yr and the constructive outlook for the second half of the yr in Telefónica’s essential markets lead the firm to elevate your monetary objectives for 2021. If the earlier reference contemplated a stabilization of earnings and working earnings earlier than amortization (OIBDA), now it considers that they are going to transfer between stabilization and slight progress. As well as, it maintains the return to a normalized degree of funding (CapEx) on gross sales of as much as 15%.

The information for the first six months of the yr are in step with the anticipated pattern for 2021 as a complete. In the second quarter, the Group’s earnings stood at 9,964 million euros, 3.6% lower than in the similar interval of 2020, however 3.4% extra in natural phrases. In the first semester, revenues reached 20,305 million euros, 6.5% lower than the determine reported in June 2020, however, once more, 0.9% extra organically. Equally, the OIBDA has accelerated the annual progress price in the second quarter organically to three.3%, with a rise of 1.7% in the first half of the yr.

CapEx has elevated by 12.8% in the second quarter in comparison with the similar interval of 2020 and by 25% in the semester. Additionally noteworthy in this era is the discount in the destructive affect of change charges on the accounts, primarily in Latin American currencies.

With respect to variety of shoppersAt the finish of June, the Group had 367.2 million accesses, together with 100% of the VMED O2 accesses, 3.7% greater than a yr earlier. The corporate’s high-speed community (fiber and cable) has reached 154.7 million actual property models (BUs), 6% extra, of which 80 million BUs correspond to the firm’s personal community, 10% greater than a yr earlier than.

Steady execution of the strategic plan

With the operations of United Kingdom Y Telxius As essential exponents, the Group has continued to make progress throughout the first half of 2021 in the execution of its motion plan. Launched in late 2019 to mark the on the technique to the new Telefónica, the achievement of the goals for which it was conceived is laying the foundations for a sustainable and worthwhile progress of the firm in the long run.

Concerning the 4 essential markets in which the firm operates, Spain has maintained the European management in fiber deployment, with greater than 26 million actual property models (UUII), and a 5G protectionthat already reaches greater than 80% of the inhabitants. The results of the current public saleof 5G, in which Telefónica has obtained 20 MHz of spectrum in the 700 MHz frequency band for 310 million euros, will enable the firm to consolidate its management in connectivity of excessive strategic worth.

United Kingdom has embraced the historic merger between O2 and Virgin Media to create a number one connectivity operator –VMED O2– with out the British regulator placing situations on the operation. Germany has proven industrial power which has resulted in improved income progress and OIBDA. And Brazil has additionally benefited from the increase in industrial exercise, mirrored in the return to progress of OIBDA in the second quarter.

In Hispam Vital progress has additionally been made in attaining much less capital publicity in the area, as evidenced by automobiles created with KKR in Chile and Colombia to deploy fiber; the technology of larger efficiencies; and the discount of dangers by way of a better proportion of debt in native forex. Particularly, debt denominated in Latin American currencies has already reached 30% of the monetary commitments of the whole Group, together with leases, in comparison with 16% in June 2020 and 21% in March 2021. This evolution permits producing protection pure that reinforces the sustainability of the firm’s financing construction. As well as, revenues have seen a notable enchancment in the area in the second quarter, with natural progress in all markets.

Acquisition of Cancom Group

Concerning the enterprise models, Telefonica Infra has extended its sequence of transactions by closing the creation of Fi Brazil, an organization owned 50% by CDPQ and Grupo Telefónica (25% Infra and 25% Telefónica Brasil) to deploy fiber in Brazil that has already began operations. This car, together with final yr’s creation of UGG in Germany, offers Infra an more and more related position. Moreover, Telxius, 50.01% owned by Infra, has strengthened its worldwide community with Tannat, a brand new technology submarine cable that connects Brazil with Argentina with its 2,000 kilometers in size.

For its half, Telefonica Tech it has continued to include property to bolster a place with which to speed up progress that continues to be sturdy. In the second quarter, the revenues of this unit have grown to 203 million euros, 26.6% extra than in the similar interval of 2020, for a complete of 369 million in the semester as a complete, 25.9% extra. To the dynamism that the Cybersecurity and Cloud providers In current months, greater progress charges have been added in the space of Huge Knowledge and IoT, a mix that enables Tech to develop above the business common and, subsequently, acquire market share.

Telefónica Tech buys Cancom Group for 398 million euros.

Telefónica Tech buys Cancom Group for 398 million euros.

In truth, Telefónica has simply introduced that it has reached an settlement with Cancom for the acquisition of 100% of the shares of the British firm by £ 340 million (roughly 398 million euros). It’s a firm that gives end-to-end superior cloud and safety providers in the United Kingdom and Eire, which enhances the enterprise developed by Telefónica Tech in the area.

Cancom will attain 190 million euros in income in 2021 with an adjusted EBITDA margin of 15.4%. Revenues associated to Managed Companies and Skilled Companies challenge differential progress of 20% and 26% CAGR18-21 respectively and at this time signify greater than 50% of the firm’s whole revenues.

The closing of the operation will happen in the subsequent few days.

About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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