Paul is one of the three founders of Dilato Media Technology & is the Chief Editor of MyStockVoice.com as well as heading up Business Development. Paul has a backround in international telecoms, prior he was an officer in the Royal Navy. He is regularly published on online portals such as Seeking Alpha & iStockAnalyst, where he concentrates on telecom, energy & commodities, mainly via ADR & ETF investment vehicles.
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CommentsPosted: Wednesday 13/05/2009 09:26
Teléfonica (NYSE: TEF) reiterates guidance for 2009, and maintains target of distributing €1.15/share in 2009, in line with its commitment to prioritise dividends to shareholders. The solid performance of organic growth in income (+2.8%), OIBDA (+2.5%), and operating income (+3.9%) confirms Telefónica's differential profile in the sector, which is characterised by its highly diversified operations, both in terms of businesses and geographies.
Telefónica totalled 261.4 million customers worldwide (+11.9%) thanks to a business strategy that focuses on capturing growth potential in expanding businesses. There has been growth in mobile access (+15.4%), broadband (+17.5%) and pay TV (+24.8%)
In line with its objective to increase earnings, operating cash flow (OIBDA-CapEx) grew 4.5% in organic terms, reaching 4,154 million euros At the close of the third quarter, the efficiency ratio rose to 75.3%, a result of Telefónica’s ability to manage its costs and investment in a flexible way Telefónica maintains its financial strength, with a ratio of net financial debt plus commitments to OIBDA of 2.1x at the end of March
By geographical areas, Telefónica Latin America continues to drive the Group’s growth (with organic revenue growth of 8.7%). In Europe – where organic revenue grew by 4%-, the business has shown resilience, driven by solid results in the United Kingdom (+7%) and Germany (+3.6%). In its domestic market, Telefónica has complied with its strategy to maximise income and maintain solid operating cash flow (+0.2% in comparable terms)
Madrid, 13th, May 2009.- In the current economic context, the sound performance of the Telefónica Group in the first quarter of 2009 reflects the success of the Company’s strategy, focused on capturing the growth potential in expanding businesses while increasing the cash flow generation, leveraging the advantages of the high diversification of the Group’s operations, both by businesses and by geographies. This strategy has allowed Telefónica to consolidate its differentiated profile in the sector, showing a notable revenue and OIBDA year-on-year growth in organic terms1, being this positive performance reinforced with a strong cash flow generation.
The Company reiterates its 2009 guidance for all metrics, announced in February 2009, and maintains its target of paying a dividend of 1.15 euros per share for 2009 fiscal year, in line with Telefónica’s commitment to prioritize shareholder remuneration for the use of the free cash flow and to progressively increase its dividend per share.
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