Telefónica earns 760 million until June and will present a new strategic plan in autumn

Telefónica obtained a profit of 760 million euros in the first half of the year, which is 26% less than in the same period of the previous year, and will present a new strategic plan on November 8.

The company will hold an 'investor day' in which it will present its roadmap for the period between 2023 and 2026 with three pillars: growth, profitability and sustainability, as explained by the president of the company, José María Álvarez- Pallete, in a statement.

Revenues in the first half of the year increased by 3.7%, reaching 20,178 million euros, driven by the growth of Telefónica Brazil (+9.8%) and Germany (+6.2%). For its part, the Oibda – a metric observed by investors to assess the profitability of the company – reached 6,266 million.

Regarding the second quarter, Telefónica accelerated its growth with a profit of 462 million euros, 44.5% more than in the same period of 2022, while revenues improved by 0.9%, to 10,133 millions of euros. In terms of clients, the company has remained stable at 383.5 million accesses.

The results have allowed the company to raise its financial guidance to 4% growth in revenue at the end of the years and between 3.3 and 3.5% in Oibda. Likewise, the entity has also confirmed the 0.30 euro dividend payable in December 2023 and June 2024 and the amortization of 1.4% of the capital.

The situation in Spain

Regarding the business in Spain, the company's revenues have increased by 0.3% to 6,183 million euros, while Oibda has fallen by 1.4% to 2,223 million. Billing in Spain accounts for 27% of the group's total business, while Oibda represents 30%:

The company has continued its good commercial trend, with a rise of 1.9% in private service revenues, thanks to the rise in prices, and which is offset by revenues from the sale of terminals, which have fallen by double digits. As for the drop in Oibda, the group attributes it mainly to the rise in salaries of the workforce.

The company has added 43,000 mobile contract customers and 24,000 fixed broadband, which is the best number of net registrations of the pandemic. On the other hand, it has lost 7,000 convergent customers and 60,000 television customers, a service that it has precisely turned around last week with a new package that allows people to watch several football matches and have access to a new sports offer that is also open to non-customers.

NEW STRATEGIC PLAN

During the presentation of results, the company has given some brushstrokes of the main lines of its new strategic plan. In financial matters, the company will bet on the most profitable businesses, which will allow it to increase its cash flows to have greater flexibility, which, in turn, will enable it to reduce its debt and increase its shareholder remuneration.

To achieve these objectives, the firm will maintain its commitment to B2B businesses and to increase the weight of technological services in its revenue mix, also mentioning the new ways to monetize the networks presented in Mobile.

Likewise, the company will also bet on reducing capital intensity and turning off old networks, such as copper in Spain, to optimize traffic and reduce maintenance costs.