Thursday, July 28, 2016

Telefonica announces accounts below expected but reiterates dividend – Yahoo Finance Spain

MADRID (Reuters) – The negative currency effect by the fall of the Brazilian real and the British pound after the Brexit eclipsing the results of Telefónica in the second quarter, which fell in revenue and OIBDA more than expected by analysts.

Although Telefonica reiterated the dividend of 0.75 euros per share, which some analysts had questioned, and other targets for 2016, its goal of achieving a ratio of 2.35 times debt / OIBDA this year became a target “medium term” frustrated after the sale of O2.

Telefónica announced an OIBDA of 3,918 million euros (+ 0.8 percent organic, -7.1 percent reported) versus analysts’ estimates 3,955 million. Sales fell 7.7 percent to 12,723 million (-0.2 percent excluding special items and currency effects) compared with a forecast of 12,884 million.

Net profit fell 54.5 percent to EUR 693 million.

the accounts were affected by a negative currency effect and the drop in revenue, albeit limited, in all geographies except Brazil and Latin America. OIBDA improved somewhat organically thanks especially to the recovery of Spain, Germany and Brazil.

The debt rose to 52,568 million euros and the group will unveil soon his letters to compensate, even partially, the proceeds from the sale of O2 frustrated, which led to a debt / OIBDA of 3.2 times, well above the 2.35 times that the group had set as a goal for 2016.

“These results and the expected improvement in cash generation in the second half of the year allow us to confirm the objectives of the year, including the dividend (0.75 euros per share) and the ratio of deleveraging in the medium term,” he said Telefonica chairman, José María Álvarez-Pallete

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