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Telefonica S.A. (TEF)

  • Tue, Feb. 24, 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)
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  • Mon, Jan. 5, 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%.
  • Dec. 10, 2014, 1:53 PM
    • Bloomberg reports Oi (OIBR -2.6%), America Movil's (AMX -2.7%) Claro, and Telefonica's (TEF -0.7%) Vivo (VIV +2.8%) plan to jointly offer $15B for Brazilian rival TIM Participacoes (TSU +11.6%).
    • TIM has soared on the report, which comes shortly after Oi struck a deal to unload its Portuguese ops for $9.1B. TIM's market cap is now at $12.1B; parent Telecom Italia (TI +1.2%) has risen modestly.
    • A Brazilian paper reported in October Oi, Claro, and Vivo were interested in acquiring and breaking up TIM to consolidate a mobile market facing slowing growth and tough price pressure.
  • Nov. 27, 2014, 1:27 PM
    • Monitise (OTCPK:MONIF) gets a £49.2M investment from strategic partners Telefonica (NYSE:TEF), Santander (NYSE:SAN) and Mastercard (NYSE:MA).
    • They will buy 161M ordinary shares at 30.5p/share (Nov. 26's close), representing 8.2% of the existing issued ordinary share capital.
    • Monitise also says it's in discussions to expand its commercial relationships with above partners "to support the development and accelerated rollout of its global platform capabilities."
    • IBM has agreed to deploy Watson in support of Monitise’s new technology platform.
    • Monitise also reiterates current year and longer-term guidance.
    • Short interest is ~11% of float.
    • Monitise was best performer on FTSE AIM 100 index today.
    • Source: press release
  • Nov. 11, 2014, 3:32 PM
    • Orange (ORAN +3.9%) and Telefonica (TEF +2%) are higher in U.S. trading after Vodafone reported a smaller-than-expected calendar Q3 service revenue decline and upped its FY15 (ends March '15) EBITDA guidance. Over in Frankfurt, Deutsche Telekom (OTCQX:DTEGY) rose 2.2%.
    • Though improved from Q2's 7.9% decline, Vodafone's European service revenue still fell 5% Y/Y in Q3. European mobile service revenue fell 5.6% (improved from Q2's 9% drop), as price pressure and voice/SMS revenue declines continue taking a toll.
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  • Oct. 31, 2014, 10:14 AM
    • Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
    • The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
    • AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
    • Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.
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  • Oct. 16, 2014, 10:09 AM
    • New worries about the health of Greece's troubled banks have contributed to a selloff in European markets, one that has taken a toll on the continent's debt-laden telcos. The ECB is reportedly mulling a funding package for Greek banks.
    • Decliners: VOD -3.1%. TEF -4.2%. ORAN -4.5%. TI -6.5%. PT -3.9%.
  • Sep. 16, 2014, 12:26 PM
    • Telecom Italia (TI -1.2%) is evaluating a potential acquisition of Brazilian carrier Oi (OIBR +11.8%) through its Tim Participacoes (TSU -2.1%) unit to challenge Telefonica (TEF +0.9%) in Latin America's largest phone market, Bloomberg reports.
    • In a deal, Tim, Brazil's second largest mobile phone company, would gain Oi’s fixed-line network to sell broadband services after losing out to Spain's Telefonica in a bid to merge with another local landline provider, GVT.
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  • Aug. 27, 2014, 11:08 AM
    • Oi (OIBR +9.6%) says it has hired i-bank BTG Pactual to help it explore options for buying Telecom Italia's (TI +4.3%) TIM Participacoes (TSU +6.2%) Brazilian mobile/wireline unit. Shares of all 3 companies are rallying, as are those of Portugal Telecom (PT +6%) and Telefonica's Brazilian unit (VIV +2.4%).
    • Given Oi's debt load (almost $20B) and potential antitrust concerns, many think a bid for TIM (would lower the number of Brazilian mobile carriers to 3) can only work if Oi partners with other carriers to acquire and break up TIM. America Movil (AMX +0.7%), which owns rival carrier Claro, is viewed as a potential partner.
    • Oi's disclosure comes as a bidding war between TI and Telefonica (TEF +0.8%) for Vivendi-owned (OTCPK:VIVHY) Brazilian wireline carrier GVT heats up. Reuters reports TI will make a €7B ($9.2B) bid for GVT that would give Vivendi a 15%-20% stake in TI; the WSJ reports Telefonica's board is meeting today to consider upping its €6.7B ($8.8B) GVT bid.
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  • Aug. 5, 2014, 2:50 PM
    • Telefonica (TEF -3.1%) and Brazilian subsidiary Vivo (VIV -7.5%) are off sharply following news Telefonica has bid $9B to acquire Brazilian wireline carrier GVT from Vivendi (OTCPK:VIVHY +1.9%), with plans to merge it with Vivo's mobile and wireline ops.
    • America Movil (AMX -2.5%), which had 68.8M Brazilian mobile subs and 34.5M wireline revenue-generating units at the end of Q2, is also off. As are Telecom Italia (TI -6%) and Brazilian unit TIM Participacoes (TSU -9.7%), and Oi (OIBR -6.7%) and merger partner Portugal Telecom (PT -5.1%).
    • Vivendi says it will study Telefonica's bid, but insists for now that "none of its subsidiaries are for sale." The conglomerate agreed to sell French carrier SFR in April.
    • A Vivo/GVT pairing could be a tougher rival for America Movil and Oi/PT, and would likely lead to a sale of Telefonica's stake in TI (as sought by Brazilian regulators). As it is, Telefonica has announced plans to cut its TI stake (currently at 14.8%) through a convertible debt offering.
    • There's speculation Vivendi could take Telefonica's remaining TI stake as part of its payment for GVT, but Nomura has its doubts. "It's hard to see why, from a Vivendi shareholder's perspective, they would want to have a minority position in Telecom Italia."
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  • Jul. 2, 2014, 11:07 AM
    • As expected, the EU has cleared Telefonica's (TEF -1.1%) $12B acquisition of German rival E-Plus from KPN (KKPNY) following a series of concessions.
    • E-Plus and Telefonica's O2 Deutschland (TELDF) unit are promising to rent out up to 30% of the combined company's network capacity, divest some spectrum, and extend existing wholesale and 4G broadband resale deals to any service provider interested in them.
    • The EU expects the concessions to spawn the creation of up to 3 new MVNOs, and thus keep competition healthy even as the number of German mobile networks gets cut to 3.
    • The clearance is expected to fuel further mobile M&A activity on the continent. EU antitrust chief Joaquin Almunia has argued cutting roaming fees and enabling cross-border services is more important for industry health than having 4 carriers in a market.
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  • May. 9, 2014, 4:24 AM
    • Telefonica's (TEF) Q1 earnings missed analyst expectations as net profit slumped 23% to €692M ($957.5M), hurt by forex turmoil in Latin America, declining revenues, and the sales of the telecom carrier's Czech business last year.
    • Revenue fell 14% to €12.2B, with sales in Spain dropping 8.2%, in Germany 8.8% and in the U.K. 0.3%. In Latin America, where Telefonica has two-thirds of its customers, revenue tumbled 18% in Brazil and 13% in the rest of the region.
    • Operating income (OIBDA) dropped 14% to €3.93B.
    • Telefonica reiterated all of its operational and financial guidance for 2014.
    • Shares are -3% in Madrid. (PR)
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  • Feb. 6, 2014, 2:57 PM
    • Telefonica (TEF +2.4%) has joined a broader market rally following reports from Bloomberg and Spain's El Economista stating the carrier is in talks to merge its Mexican ops with the country's #3 mobile carrier, Grupo Iusacell, in an attempt to better take on America Movil (AMX +2%).
    • AMX has a 70% share of the Mexican mobile market, and Telefonica and Iusacell have most of the rest. Struggling NII Holdings (NIHD) also competes in Mexico; the carrier struck a deal with Telefonica last month to gain wholesale access to its Mexican/Brazilian mobile networks.
    • The Mexican government has been looking to curb AMX's market power. Lawmakers created a new telecom regulator last year, and are expected to soon float a bill that will spell out actions regulators can take to limit the power of phone/media giants.
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  • Jan. 6, 2014, 11:07 AM
    • Telefonica (TEF +0.2%) denies an Italian media report stating the carrier and Brazilian subsidiary Vivo (VIV -0.7%) are working with rivals America Movil (AMX +0.4%) and Oi (OIBR -1.7%) to acquire and break up Telecom Italia's (TI +0.1%) Brazilian unit, TIM Participacoes (TSU -1%). TIM and Oi are trading moderately lower today after flying higher on Friday in response to the report.
    • Telefonica adds it hasn't talked with Brazil's antitrust regulator Cade about a deal. Reuters recently reported Cade has given Telefonica, which owns a large indirect stake in Telecom Italia, 18 months to lower its Brazilian market presence, either by cutting ties with TIM or finding a partner for Vivo.
    • However, Cade reportedly prefers TIM to be sold in whole to a new market participant, rather than piecemeal to rivals. Telefonica, America Movil, and Oi would likely prefer that didn't happen, since it could spell competition from a major foreign carrier such as AT&T or Vodafone.
    • Telefonica and others have been pressuring Telecom Italia to explore a sale of TIM, but the debt-laden Italian telco has been reluctant to cut its ties with a major growth market.
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  • Nov. 8, 2013, 5:14 AM
    • Telefonica's (TEF) Q3 net profit dropped 21% to €1.09B ($1.46B) and slightly topped expectations, while revenue declined 10% to €14.1B.
    • Earnings were hurt by forex fluctuations, with sales in Latin America climbing 11% in local currencies but tumbling 6.8% in euros. The divestiture of assets also hit Telefonica's numbers.
    • In Spain, revenue from fixed and mobile lines slid 8.8%, although operating margins significantly increased.
    • Debt fell to €46.1B from €48.6B in Q2, with Telefonica's loan-cutting program head of plan.
    • Shares are +3.9% premarket. (PR)
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  • Oct. 14, 2013, 9:29 AM
    • Bloomberg reports Telefonica (TEF) has hired Goldman and SocGen to find a buyer for Telefonica Czech Republic, in which it owns a 69% stake (currently valued at $3.6B). Shares of the Czech subsidiary are up 4.4% on European exchanges.
    • Telefonica has been rumored to be weighing a sale of the business for a while, as the European/Latin American carrier pushes works to lower its net debt (still €49.8B at the end of Q2). Like many other European carriers, the Telefonica Czech Republic has been seeing declining revenue (-7.8% Y/Y in Q2) thanks to nosediving voice/text-messaging activity.
    • Telefonica unloaded its Irish unit for €850M earlier this year, but also recently struck a deal to raise its Telecom Italia stake.
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Company Description
Telefonica SA is a telecommunications group which provides mainly fixed and mobile telephony, broadband, internet, data traffic, pay TV and other digital services.
Sector: Technology
Country: Spain