Telefonica (TEF): Q1 net profit -54% Y/Y to €748M vs. consensus of €1.31B. Revenue rose 0.5% to...


Telefonica (TEF): Q1 net profit -54% Y/Y to €748M vs. consensus of €1.31B. Revenue rose 0.5% to €15.5B. Latin American operations made a strong contribution, but couldn't compensate for weakness in European markets. (PR .pdf)
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Comments (10)
  • godalmightee13
    , contributor
    Comments (620) | Send Message
     
    Yikes :-O
    11 May 2012, 04:35 AM Reply Like
  • Ramon Vredeling
    , contributor
    Comments (574) | Send Message
     
    “The results obtained in the first three months of 2012 reflect from an operating standpoint the strategic priorities established for the entire year. Our revenues have experienced a very significant year-on-year improvement, reflecting the successful change in the Company's commercial strategy introduced in the second half of 2011. Thus, the commercial repositioning of tariffs, designed to be more competitive, drive penetration of mobile broadband services and minimise churn, has led to a strong commercial momentum since the beginning of the year which will revert in faster top-line growth throughout the year.

     

    We continue working on several initiatives to improve efficiency and optimise the use of capital, leveraging our scale through Telefónica Global Resources and capturing the savings resulting from the restructuring programmes initiated in various countries. However, the fact that we are focused on laying the foundations for the future growth of the Company has a negative short-term effect on OIBDA margin performance, which is affected by the higher commercial expenses necessary to accelerate the growth of accesses and, in particular, of mobile broadband accesses. In this respect, it must be highlighted that we already have over 40 million mobile broadband accesses, driving mobile data revenue growth up to 15% year-on-year.

     

    In Latin America, we are leading mobile market growth and the uptake of mobile broadband services. Revenues from Telefónica Latinoamérica posted sustained - almost double-digit - growth and, for the first time, this region accounted for over 50% of consolidated OIBDA. This performance shows the benefits of our high diversification, our key strength against a backdrop of challenging economies and adverse regulation in Europe.

     

    In Spain, we pioneered the elimination of handset subsidies for new customers, taking a significant step towards a far-reaching transformation of the commercial structure of the market. This move, alongside the agreement reached with Mozilla to develop smartphones based on the open HTML5 system and the increased drive towards integrated tariffs and tiered pricing are clear examples of our strategy to transform the business model within the new digital environment. Additionally, Telefónica Digital is already delivering new innovative services adapted to the new usage patterns of our customers.

     

    From the financial perspective, and despite market volatility, at the end of the quarter, we had already refinanced all of our 2012 maturities, whilst maintaining a sound liquidity position. In the coming months, we will continue to actively manage our asset portfolio, fulfilling our objective of reducing the leverage ratio.

     

    Finally, I would like to highlight that the results for the first quarter are in line with the Company's internal estimates and are coherent with the performance for the year as a whole, which we anticipate accelerating noticeably in the second half, and therefore we reiterate the financial and operational guidance announced for 2012.”

     

    http://bit.ly/JEWJyQ
    11 May 2012, 07:25 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1038) | Send Message
     
    Do not forget to give complete information, that (TEF) in the past twelve months has fallen over 60%!.
    For the new investor, do not expect that (TEF) fall another 50% because you will wait for nothing!.
    11 May 2012, 10:15 AM Reply Like
  • cognitorex
    , contributor
    Comments (153) | Send Message
     
    What was the Italian Telefonica writedown? EPS without this non cash charge? Free cash flow vs usual vs last year? A headline summary is dumb/misleading without knowledge of answers to these questions. Happy investing.
    11 May 2012, 10:37 AM Reply Like
  • Ricardo Espinosa
    , contributor
    Comments (458) | Send Message
     
    $14 has held greatly in the weekly chart for the past month or so, feel free to buy, I got some TEF Sep 15 calls @0.50, bargain price, a lot lower than intrinsic value by black-scholes model.
    11 May 2012, 11:25 AM Reply Like
  • bobdbrannon
    , contributor
    Comments (2) | Send Message
     
    Can someone expand on the dividend situation re TEF?..As in when ,howmuch and in what form...eg Cash,Stock etc????
    11 May 2012, 03:54 PM Reply Like
  • bobdbrannon
    , contributor
    Comments (2) | Send Message
     
    Can anyone expand on the dividend situation re TEF?..As in when and how much and in what form eg Cash?..Stock?....Thanks
    11 May 2012, 03:54 PM Reply Like
  • Ramon Vredeling
    , contributor
    Comments (574) | Send Message
     
    The Board of Directors of TELEFÓNICA, at its meeting held on 14th December 2011, has analysed and positively considered a revision of the shareholder remuneration targets announced in October 2009, which were established considering an economic and operating environment and financial markets conditions that have changed materially since then

     

    The dividend for the year 2011 is maintained at 1.60 euros per share, having fulfilled already a first payment of 0.77 euros per share in November. The remaining amount (0.83 euros per share) will be distributed in May 2012, though the combination of a cash payment and a payment in-kind, the latter through the distribution of treasury shares of the Company for a maximum amount of 0.30 euros per share, and subject to market conditions.

     

    Total shareholder remuneration for the year 2012 will amount to 1.50 euros per share, including the payment of a cash dividend of 1.30 euros per share and a share buyback for the remaining amount. Treasury shares acquired will be amortized and the share buyback shall be completed by May 2013.

     

    For the year 2013 the minimum total shareholder remuneration per share will be similar to the one for the year 2012 (1.50 euros per share). The remuneration mix (dividend, share buyback or the combination of both) will be decided considering market conditions and investor preferences at that time.
    12 May 2012, 03:36 AM Reply Like
  • Josemour100
    , contributor
    Comments (11) | Send Message
     
    I looked everywhere but nobody seems to answer the most obvious question: Is the 54% fall in 1st qtr income something to worry about or part of the plan at TEF? The report too complicated for me to analyze. Thanks.
    13 May 2012, 02:30 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1038) | Send Message
     
    Outlet looks like it's finished today!!.
    17 May 2012, 10:53 AM Reply Like
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