Telefonicawatch, issue 2009.03 snapshot
May 12, 2009
GROUP: Telefónica was reported to have made a bid for Telecom Italia’s German unit HanseNet, and was again said to be close to a takeover of the indebted Italian company’s stake in Cuba’s Etecsa. Additionally, Telefónica was linked with an acquisition of Portugal Telecom’s shares in Moroccan joint venture Meditel. More speculative reports, sparked by a PR tender, suggested the Group is closing on an acquisition in the USA. [pp.3,4,7.]
Telefonicawatch, issue 2009.02 snapshot
April 9, 2009
Management conferences were held by Telefónica in Uruguay and Spain, with senior executives presenting the objectives for the mid-term to managers. The Latin America conference focused on the division’s success in becoming the company’s growth engine, and emphasised the role that the division needs to play in supporting future ambitions. In Spain, meanwhile, European managers were urged to focus on finding new opportunities to exploit, as the “digital world” becomes a reality. [pp.27,32,44-45.]
Telefonicawatch, issue 2009.01 snapshot
February 17, 2009
MAIN STORIES: Telefónica trumpeted a contract worth EUR350m with Deutsche Post, which it claimed heralds a serious assault on the market for ICT services for multi-national corporations. The contract, to be managed from Prague and overseen by O2 UK Chief Executive Ronan Dunne, was described as a beachhead, and the company promised more news of contracts through 2009 and 2010. Telefónica said it was confident it had the skills and experience to manage international contracts of this type — partly thanks to the O2 acquisition. While Telefónicawatch considers there are risks and pitfalls ahead as the company tries to find growth in new areas, it also has the potential to prove an early success in this sector. The challenge will be to not take its eye off the ball of its core businesses, and find a way to ensure the MNC contracts ultimately prove profitable. [pp.3-7.]
Telefonicawatch, issue 2008.11-12 snapshot
December 24, 2008
GROUP: Prisa confirmed it was in talks with Telefónica and French media group Vivendi regarding a joint bid for the Digital+ pay-TV unit. Lycos Europe is to go into voluntary liquidation after selling off parts of its business, with some funds returning to majority shareholder Telefónica-owned Terra. [pp.3-4.] Read more
Telefonicawatch, issue 2008.10 snapshot
November 18, 2008
Telefónica reported its results for the first nine months of 2008, showing solid growth despite sharp headline falls in OIBDA and net profit caused by previous one-off capital gains from the 2007 sales of Airwave and Endemol. Continued strong growth in Latin America across wireless and fixed-line services indicated that — at least for now — the company is sufficiently diversified to deal with the global financial downturn. Early results from Telefónica units had already indicated the company was performing sufficiently well to meet targets and that expectations would be met. An interim dividend of EUR0.50 was also paid, again in line with previous statements of intent. [pp.3-6.] Read more
Telefonicawatch, issue 2008.07-08 snapshot
September 20, 2008
Telefónica’s capex expectations for 2008 remain at the levels predicted at the beginning of the year, said Telefónica COO Linares, indicating the Group has no immediate intention of slowing its network rollout plans. Telefónica Latinoamérica has taken the largest share of the spend so far this year (and looks set to continue to do so), and comments from Latinoámerica Chief Executive Jose-Maria Alvarez-Pallete suggested roll out of 3G services could begin in earnest in the first quarter of 2009. Telefónica emphasised its cautious approach towards provision of content. The iPhone 3G was also launched in nine territories. [pp.5-7.] Read more
Telefonicawatch, issue 2008.06 snapshot
August 8, 2008
Q2/H1 FY08 RESULTS: Unlike some rivals, Telefónica’s second-quarter and half-year results were well received, with the Group delivering solid numbers, well versed in calming investors’ sector-wide jitters, and reiterating full-year outlook. Despite unhelpful exchange rate movements, Latinoamérica remained the engine of growth, with España achieving growth in a tough market (contrasting with Vodafone’s much-publicised local weakness), as Europe (O2) managed to tread water in the face of tough competition and further exchange rate challenges. Across the Group, fixed-broadband and pay-TV supported mobile operations as notable drivers of growth. The Group continues to profess “limited M&A ambitions“, and a prioritisation of shareholder returns. [pp.5-37.] Read more
Telefonicawatch — Wordle view
July 15, 2008
Created by Wordle.
Telefónicawatch, issue 2008.04-05
July 10, 2008
GROUP: Telefónica appointed Eduardo Zaplana, previously a senior spokesman for Spain’s Popular Party, to the role of Head of European Relations at the European Commission. It was noted that Zaplana is close to government representatives in many European countries, but most particularly Silvio Berlusconi, the Italian Prime Minister whose influence and business interests can overlap with Telefónica’s activities. [p.3.]
Telefonicawatch, issue 2008.03
May 11, 2008
GROUP: Rumours re-emerged that Telefónica could be looking at an acquisition of Dutch telco KPN, but the company again dismissed the speculation. There were also calls from Telecom Italia shareholders for Telefónica to consider a merger with Telecom Italia, in which it already holds a stake through the Telco SpA consortium. Telco SpA was reported to have increased its stake in the struggling Italian incumbent. [pp.3,5,47.]
Telefónicawatch
Issue: 2008.03
Covering: 13 March to 30 April 2008
Published: May 2008
Next issue: May/June 2008
Delivering valuable insight into the labyrinth that is Spain’s global telco giant. A unique monthly report for the industry.
