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Thu, Feb. 11, 8:23 PM
- Telefonica (TEF -2.9%) -- in the process of spinning its infrastructure assets into a company called Telxius -- says in a filing that it is considering an IPO for the new unit.
- It's analyzing "different strategic alternatives, among which is a possible initial public offering."
- In announcing the spinoff, Telefonica said the new company would hold about 15,000 towers and a lengthy fiber network including undersea cable, along with possible third-party assets.
- The Spanish carrier is looking to improve profitability along with raising cash and cutting debt.
- ADRs rose 1.2% after hours today.
Wed, Feb. 10, 11:43 AM
- Telefonica (TEF +2.3%) is the latest telecom to separate its network assets, spinning them off into a company called Telxius.
- The new firm will initially hold about 15,000 towers in Spain and elsewhere, and a fiber network reaching to 31,000 km. Telefonica might incorporate third-party assets in the company as well.
- It could lead to a sale or market listing for Telxius, and in the coming months other newly created companies will be gradually integrated into the spinoff. The new company will be run by Alberto Horcajo, named CEO.
Fri, Feb. 5, 4:26 PM
- Mexico is giving clearance to AT&T (T +1%) and Carlos Slim's America Movil (AMX -2.4%) to take part in a wireless spectrum auction there.
- The sale process will begin Feb. 15. IFT, the country's telecom regulator, says the two companies can put in bids for 80 MHz of spectrum in a pair of bands: 1710-1780 MHz, and 2110-2180 MHz.
- The two companies are also competing with Telefonica (TEF +1.1%) in Mexico's tender for a large wholesale mobile network.
Fri, Jan. 15, 7:18 PM
- Telefonica (TEF -3.5%) is expressing interest in buying Latin American assets from AT&T (T -0.9%) that could come to $10B in value, Reuters reports.
- AT&T acquired the pay TV assets in its acquisition of DirecTV last year, and CEO Randall Stephenson said in December that the company would consider selling them but was in "no rush" and would be patient.
- A source told Reuters that other parties were interested in specific country assets -- AT&T acquired services in Brazil, Colombia, Venezuela and Argentina among other countries -- so AT&T could run multiple sale processes and deal with a company like Liberty Global (LBTYA -4.7%).
- Meanwhile, Telefonica has been making portfolio changes but against some €50B in debt (about $54B). It's looking to sell Spanish infrastructure and agreed to sell its O2 business in the UK to CK Hutchison holdings for $15B.
Dec. 18, 2015, 3:27 PM
- Telefonica (NYSE:TEF) is off in U.S. trading, down 3.3% and setting a new 52-week low, after Morgan Stanley's issued a downgrade to Underweight.
- The firm put a price target of €13.50 on the shares. Telefonica closed down 3.4% in Spanish trading, to €10.38; shares closed there yesterday at €10.66, implying a still-healthy 27% upside in the target.
- Shares have fallen nearly 24% over the past six months; and dropped 10.9% over the past month.
Nov. 19, 2015, 7:19 PM
- Telefonica (NYSE:TEF) says it may slow down its fiber rollout now that Spain's telecoms regulator has ruled it must open the infrastructure to rivals in most of the country.
- The country's CNMC regulator has published a draft ruling saying that Telefonica would need to open its fiber network to competitors in municipalities where there are fewer than three players. That covers around 75% of the country.
- Telefonica also must give wholesale bitstream access on copper and fiber for the business market, and wholesale access on copper and fiber in low-competition areas without a 30 Mbps speed cap.
- The decision "will result in the possibility of the brakes being put on investment in our country and bring to an end a successful model that has brought about the deployment of fiber-to-the-home in Spain, which has surpassed all other European countries in terms of the number of homes passed," Expansion reports Telefonica as saying.
- Shares in Telefonica gained 3% after hours.
Nov. 6, 2015, 10:01 AM
- Telefónica (NYSE:TEF) ADRs are 2.6% lower as the company's Q3 profit declined slightly though revenues beat expectations amid an ongoing sales recovery in its home country.
- Net income was €884M, down from the prior year's €900M; per-share income of €0.12 was short of an expected €0.18. Revenues rose 11% to €11.9B, above a consensus of €11.75B.
- Revenue in Spain returned to growth (+0.2% Y/Y) for the first time since December 2009, after it stabilized in Q2.
- Depreciation of Latin American currencies against the euro took a toll, particularly in Venezuela, Colombia and of course Brazil, where sales dropped 5.5%.
- Despite the Q3 slip, net income for the first nine months is up 69.6% at €4.577B.
- The company reiterated its outlook for sales growth over 9.5% this year.
Oct. 14, 2015, 10:39 AM
- Moody's is raising its outlook for Europe's telecoms to stable as it predicts a return to revenue growth overall, amid growing consumer demand and spending capacity, and price increases.
- The firm expects revenues overall to grow by 1-2% over the next 12-18 months.
- "Increasing demand for broadband, improved consumer spending capacity and a change in focus from price competition to service quality leading to price increases will underpin European telecommunications service providers' return to revenue growth in 2016," says Moody's analyst Carlos Winzer.
- He pointed to Telefonica (TEF -1.6%), whose ARPU was up sequentially to €71.80/month from €68.80/month and who's rolling out premium packages at premium prices. Moody's expects positive ARPU for Deutsche Telekom (OTCQX:DTEGY) amid similar premium pricing.
- Despite a stable outlook on the Africa, Middle East and Turkish markets, slowing GDP in some countries (including Nigeria and those on the Arabian peninsula) could press revenue growth.
- The outlook on Russia's big three, however -- Mobile TeleSystems (MBT +2.1%), MegaFon (OTC:MFOYY) and VimpelCom (VIP +0.8%) -- stays negative amid the Russian economic crisis.
Sep. 18, 2015, 7:49 PM
- Vivendi (OTCPK:VIVHY -2.4%) is out of Telefonica Brasil (VIV -4.6%) after finalizing its share swaps related to the sale of GVT.
- The French conglomerate sold a 4% stake in Vivo on the open market for $877M in July and entered a swap deal with Telefonica (TEF -4.2%) for its remaining 3.5% stake, taking approximately a 0.95% interest in Telefonica.
- It had obtained the stake in Vivo after selling GVT to Telefonica.
- So Vivendi is "out" of Brazil, but still has an indirect presence: a 15.5% stake in Telecom Italia, which owns TIM Brasil.
Sep. 18, 2015, 1:25 PM
- Antitrust regulators in Europe are set to launch a wide probe into Hutchison Whampoa's (OTCPK:HUWHY) £10.3B bid for O2, the UK mobile unit of Telefonica (TEF -4.1%) -- which likely means key concessions are coming, Reuters reports.
- The plan to merge Hutchison's Three with O2 was a long time coming, and now it's facing what looks like a sterner regulatory regime whose stance helped kill a plan to merge the Danish operations of TeliaSonera and Telenor.
- The EU's competition authority has an Oct. 16 deadline for preliminary review but is expected to follow with a full-blown investigation that should last five months.
- Proper concessions are likely to be challenging, however: Three UK shares a 3G network with market leader EE (ORAN, OTCQX:DTEGY), while Telefonica shares some towers with Vodafone (NASDAQ:VOD) -- which has been vocal about ensuring competition as the UK market consolidates.
Sep. 2, 2015, 11:39 AM
- Needing a good network to pursue further growth in Mexico, but "light-years away from it," Telefonica (TEF -2.2%) says it's open to deals with competitors there, including America Movil (AMX -0.1%) and AT&T (T +0.6%).
- Technical improvements could hinge on a possible deal with America Movil's tower spinoff Telesites, if it makes its infrastructure available. Combined creation of infrastructure is also a possibility.
- AT&T has been working on its deal to rent towers from Telesites, which holds 11,000 towers in the country.
- Telefonica has an "obligation" to explore possible deals, said COO Jose Maria Alvarez-Pallete. “We still have a lot of work to do in Mexico, but for the first time we have elements” for growth.
- Previously: Telefonica: Brazil recession 'won't change our plans' (Aug. 31 2015)
Jul. 16, 2015, 11:26 AM
- Telefonica (NYSE:TEF) is up 2% after getting a coverage launch from JPMorgan at Overweight.
- ADRs are trading at $15.04 on the NYSE. The stock is up nearly 10% over the past week.
- Last week, Zacks upgraded Telefonica to Buy and had set a $15 price target.
- Coincidentally, an equity swap that Telefonica did with JPMorgan resulted in the bankers taking a 7% stake in Telecom Italia. Telefonica will reclaim those shares from JPMorgan in 2017 and give them to investors in an exchangeable bond.
- Previously: Europe's quad plays likely leading to better margins, moats (Jul. 08 2015)
- Previously: Equity swap gives J.P. Morgan 7% of Telecom Italia (Jul. 02 2015)
Jun. 22, 2015, 12:13 PM
- With consolidation in the air, telecom players are trading significantly higher today Europe-wide.
- Telefonica (TEF +4.5%), Telecom Italia (TI +1.9%), Orange (ORAN +8.2%), Vodafone (VOD +1.8%), KPN (OTCPK:KKPNY +5.5%), Deutsche Telekom (OTCQX:DTEGY +5.4%), Belgacom (OTCPK:BGAOY +2.7%), TeliaSonera (OTCPK:TLSNY +1.9%) and Pharol (OTCPK:PTGCY +8.5%) are all among firms getting a punch up today.
- The richness of the proposed deal by Numericable-SFR (Altice, OTC:ATCEY) for Bouygues Telecom (OTCPK:BOUYY) -- at €10B, it suggests one of the highest regional industry EBITDA multiples (14.4x) in years -- may be lifting firms in a consolidation-friendly atmosphere, even with the hurdles this deal has to overcome.
- French regulators have gone on the record against the deal, calling for investment: “Consolidation isn’t advisable for the sector,” says econ minister Emmanuel Macron. “Employment, investment and giving customers the best possible service should be the priority.”
- In addition, a reluctant Martin Bouygues would need to be convinced to change his mind and sell.
- Previously: Altice confirms Bouygues Telecom bid (Jun. 22 2015)
Jun. 3, 2015, 10:57 AM
- Leading Spanish carrier Telefonica (TEF +1.6%) is starting a partnership with France's Bouygues (OTCPK:BOUYY) to offer telecom services to multinational firms, building on a working relationship they started four years ago.
- The JV will be called Telefonica Global Solutions France and will operate with independent marketing and sales teams.
- Bouygues has said that it's not talking with any merger partners, and France's economy minister said recently that it's not the right time for consolidation among the country's telecom firms.
Feb. 24, 2015, 8:02 PM
- U.K. mobile firms are likely looking at a license fee increase as regulator Ofcom follows its government mandate to ensure spectrum fees reflect market value.
- EE (ORAN, OTCQX:DTEGY) -- on its way to becoming part of BT Group (NYSE:BT) -- Three (OTCPK:HUWHY), O2 (NYSE:TEF) and Vodafone (NASDAQ:VOD) could see fees for the 900 MHz and 1800 MHz bands rising to a total £223.3M/year ($345.5M/year) -- up from the combined £64.4M/year they pay now.
- Considering proportional increases, EE might see its current £24.9M/year rise to £75.6M.
- Related mobile stocks were up today, with the exception of Vodafone, which saw a downgrade from Bank of America: ORAN +1.7%; OTCQX:DTEGY +1.9%; TEF +1.4%; OTCPK:HUWHY +0.3%; VOD -3.3%.
- Previously: Vodafone lower after BofA downgrade (Feb. 24 2015)
Jan. 5, 2015, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
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