- Telefonica’s second quarter revenue was EU8.95 billion, meeting estimates.
- Revenue in Spain reached EU3.19 billion, slightly surpassing the estimate of EU3.17 billion.
- Revenue in Germany matched the estimate at EU2.04 billion.
- Brazil’s revenue hit EU2.28 billion, exceeding the estimate of EU2.27 billion.
- Hispam’s revenue was EU1.04 billion, below the expected EU1.09 billion.
- Operating income stood at EU1.03 billion, in line with predictions.
- Adjusted Ebitda came in slightly below estimates at EU2.92 billion, with an expected EU2.93 billion.
- In Spain, adjusted Ebitda was EU1.13 billion, matching estimates.
- Adjusted Ebitda in Germany was EU638 million, falling short of the EU646.5 million estimate.
- Brazil’s adjusted Ebitda slightly surpassed expectations at EU960 million, compared to an estimate of EU958.5 million.
- Hispam reported an adjusted Ebitda of EU208 million, underperforming against the EU212.2 million estimate.
- Ebitda was recorded at EU2.91 billion, a bit below the expected EU2.93 billion.
- The Adjusted Ebitda margin stood at 32.6%.
- Market consensus includes 6 buy ratings, 17 hold ratings, and 7 sell ratings.
Telefonica SA on Smartkarma
Analyst coverage of Telefonica SA on Smartkarma provides valuable insights into the company’s strategic moves and financial outlook. Jesus Rodriguez Aguilar, in the report “Dropped the Line: Telefónica Disconnects from Peru,” discusses Telefonica’s sale of its Peruvian subsidiary for €0.9 million, transferring €1.24 billion in debt as part of its strategic exit from Hispam. Despite incurring a €620 million loss, the move signifies a focus on core markets with higher returns, improving group visibility and showcasing management’s commitment to financial discipline across Latin America.
In another analysis titled “Asset Sales as a Catalyst for Share Price Recovery,” Rodriguez Aguilar highlights Telefonica’s plan to sell assets in Latin America and Europe to reduce debt by €3.27 billion. This strategic move aims to lower net debt by 11.4% while maintaining a strong dividend yield of 7.2%. By actively pursuing asset sales and streamlining operations, Telefonica is poised to strengthen its financial position and enhance shareholder value in the long run.
A look at Telefonica SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Telefonica SA, a telecommunications company serving Europe and Latin America, appears to have a promising long-term outlook based on its Smartkarma Smart Scores. With a high score in Dividend and above-average scores in Value and Momentum, Telefonica SA seems well-positioned to provide steady returns to investors. While the Growth and Resilience scores are lower, the company’s strong Dividend score indicates its commitment to rewarding shareholders, which could attract income-focused investors.
Overall, Telefonica SA‘s Smart Scores suggest a solid investment opportunity for those seeking stable dividends and potential growth. Despite moderate scores in Growth and Resilience, the company’s strengths in Dividend and Value, coupled with positive Momentum, indicate a favorable outlook for the company’s future performance in the telecommunications sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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