Telefonica results – Primary data
It achieves all its financial goals for 2023 and confirms the distribution of cash dividends for 2024 amounting to 0.3 euros.
Madrid, 21 years old (European Press)
Telefónica recorded accounting losses of €892 million in 2023 following the provision of a restructuring plan for Telefónica Spain and a deterioration in goodwill at its UK subsidiary, despite its income growing by 1.6% to €40,652 million, the operator reported. Which achieved all its financial goals for the year 2023 and confirmed the distribution of cash dividends of 0.3 euros for this year.
Specifically, Telefónica's normalized net profit, which excludes provisions and extraordinary items, was €2,369 million in 2023, up 17.1% from the previous year.
Including a provision of EUR 1,320 million corresponding to the restructuring plan of Telefónica Spain and an impairment of goodwill of EUR 1,786 million in Virgin Media O2 – its 50% UK subsidiary with Liberty -, derived from higher discount rates, macroeconomic and the conditions experienced United Kingdom Among other exceptional events, net losses recorded in 2023 amounted to €892 million (compared to a profit of €2011 million in 2022).
In terms of billings, in 2023 the company saw an overall growth in income in the main markets in which it operates, so its sales of 40,652 million euros (+1.6% year-on-year) are the highest since 2020.
Likewise, normal operating result before depreciation (OPDA) (excluding the impact of extraordinary items) was €13,121 million, representing a year-on-year increase of 1.4%.
However, Telefónica's subsidiary Oibda was also reportedly affected by extraordinary events, and in 2023 its value amounted to €11,390 million, which was 11.4% lower than the previous year (€12,852 million).
Regarding corporate tax, it represented an income of 884 million euros in the fourth quarter of last year and 899 million euros in 2023, compared to an expense of 326 million euros in the last quarter of the previous year and 641 million euros in the year.
Telecom explained that this is mainly due to the recording of the tax impact of the provision linked to the Employment Regulation File (ERE) for 3,420 employees that the company recently implemented in its three main subsidiaries in Spain and the recognition of deferred tax assets for “future use of tax credits” in Spain. .
On the other hand, the company also exceeded its free cash flow forecast, which amounted to 4,227 million euros, higher than the 4,000 million estimated.
“Telefónica continues to implement its roadmap, without stopping in the face of global macroeconomic uncertainty, with the ambition and determination necessary to complete the operational transformation process that began in 2016. In 2023, Telefónica has achieved all its financial targets and is tenaciously facing its obligations,” said the President of Telefónica. , José María Álvarez Ballete, “We have identified in our strategic plan GPS (English abbreviation for Growth, Profitability and Sustainability) to continue building a new Telefónica and lead the new digital era.”
“The operator has returned to growth with greater profitability and, moreover, in a more sustainable way. Revenue growth and cash flow generation remain strong, allowing us to comfortably cover the dividend of €0.30 per action with cash,” he added. .
Dividend
Regarding the shareholder bonus for the year 2024, the company confirmed the distribution of cash dividends of 0.3 euros per share, paid in two tranches, one in December 2024 (0.15 euros) and the other in June of 2025 (0.15 euros), in line with what is specified in the “GPS” plan. ” Her own.
“In addition, 1.4% of the company’s share capital will be amortized, equivalent to the treasury shares outstanding as of June 30, 2023,” Telefónica explained.
Regarding the dividend for 2023, which also amounts to 0.30 euros per share in cash, the company has already paid the first tranche (0.15 euros) last December and plans to pay the second (0.15 euros) next June.
religion
On the other hand, the operator ended 2023 with a net financial debt of 27,349 million euros, representing a debt ratio of 2.6 times. It rose by €662 million despite generating positive free cash flow of €3,988 million.
The factors that led to the increase in net debt in 2023, as explained by Telefónica, are: shareholder remuneration (€2,320 million), net financial investments (€688 million, mainly due to the acquisition of Telefónica Germany shares), and business source liabilities ( 854 million euros). € million) and “net of other factors” (€788 million).
In this sense, in 2023 the company made financing efforts amounting to 5,296 million euros, allowing it to maintain a liquidity position of 19,531 million euros.
Telefónica therefore has maturities for the next three years, of which around 80% are at a fixed interest rate and maintains an average debt age of close to 11.6 years.
Improve forecasts
Regarding the outlook for 2024, Telefónica expects revenue growth of around 1%, EBITDA between 1% and 2% and operating cash (Ebitdaal-CapEx) also between 1% and 2%.
Likewise, he expects an investment-to-income figure of up to 13% and an increase in free cash flow of more than 10%.
“With regard to the cash growth target for this year, as a reference it will be the amount of 2,308 million euros achieved through the new definition that Telefónica will apply starting from this year,” the operator explained.
845556.1.260.149.20240222072740
“Creator. Devoted pop culture specialist. Certified web fanatic. Unapologetic coffee lover.”