Telefonica reiterates the dividend but opens the door to check it out – Yahoo Finance Spain

By Andrés González and Julien Toyer

MADRID (Reuters) – Telefonica expects the improvement in cash flow during the second half of year and sales of assets enable it to fulfill two objectives:. pay a dividend of 0.75 euros per share and reduce its more than 52,500 million euros of debt

Just five months after the former President Cesar Alierta affirmed that the dividend was secured for the next 5 or 10 years, his successor, Jose Maria Alvarez-Pallete left open the door to a review even at the end of the year.

“the current level dividend is comfortable and can do both things: to show that we desapalancarnos and that the dividend of 75 cents is compatible and sustainable at this level, “Pallete said

.” later this year we will revisit but these are the trends we see now, “he said.

After results that disappointed the market showed weakness except in Germany and Spain by the negative currency effect, Telefónica hopes to accelerate its cash generation to end of the year from 815 million in the first half

since this does not seem sufficient to meet its claim to reduce debt and maintain dividend, Telefónica offered to more alternatives for the coming months market. place in bag or a private a minority stake of O2 and sell its subsidiary infrastructure Telxius.

the issue of hybrid bonds, an option that was handled so far, has lost its appeal for its high financial cost in the current context market, said area director Angel Vilá

the bag did not give truce to action despite the measures announced and titles Telefonica -. who had behaved with positive difference and an appreciation of almost 20 percent in the last month -., were down 4.45 percent at 1555 local time

two years behind schedule

the first time Telefonica announced to market its goal of reducing leverage was 2.35 times OIBDA results in 2014. I wanted to finish 2015 with that ratio and the same ambition for 2016 was set.

after breaching it in 2015, months after , the frustrated sale of O2, the group suggested that the ratio, a measure in which the agencies insist to maintain the rating, was a “medium-term objective,” although it was formally still a target for 2016.

Now, with leverage of 3.2 times and after finding that will not lower its debt to that level, lets end of 2017 the objective.

UP tREASURY AND SALES GENERATED UNICOM DISABILITY

Telefónica sent along with its results a comprehensive report that reviews the accounts for the last six months. In it, the operator said it has made purchases of treasury shares to raise up to 4.23 percent of the capital from the 3.29 percent it held earlier this year.

At market prices , treasury shares is valued at more than 1,800 million euros. The council decided in the second half if depreciated 1.5 percent of the capital.

The group also reported that the sale of 1.35 percent of China Unicom last July 10 for about 322 million euros, it will be a negative accounting impact of 123 million euros and the remaining share of 1 percent remains as “held for sale”.

the group has been reducing its stake in the Asian company gradually, while maintaining a strategic alliance with the signature

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