Telefónica won 3,331 million in 2018, 6.4% more | Economy



Telefónica recorded a net profit of 3,331 million euros in 2018, 6.4% more than in the previous year. However, the operator reduced its turnover by 6.4% to 48,693 million euros, due to the exchange impact in the countries where it operates, particularly in Argentina due to the effects of hyperinflation. The Spanish subsidiary achieved the best commercial activity in, at least, 10 years, thanks to the pull of its complete football offer.

The company expects to grow 2%, both in its revenue and gross operating profit (Oibda) and maintain the dividend, with the payment of 0.4 euros per share, payable in December 2019 (0.20 euros) and in June 2020 (0.20 euros).

The group chaired by José María Álvarez-Pallete managed to reduce its debt by 2,445 million in 2018, to 41,785 million euros, being the seventh consecutive quarter that manages to reduce its debt, which fell by 5.5% from a year ago. If the disinvestment operations announced in the first two months of 2019 (Telefónica Centroamérica and Antares) are taken into account, net debt would be further reduced by approximately 1,400 million euros.

The depreciation against the euro of the currencies to which Telefónica has exposure, especially of the Brazilian real and the Argentine peso, and (excluding the effect of inflation) reduce by 8.2 percentage points the year-on-year growth of revenues and by 9, 3 points the OIBDA (-1,511 million euros) in 2018. The effect is lower in terms of cash generation (-508 million), since depreciation also means lower payments for CapEx, taxes and dividends to minority interests. Likewise, the evolution of the exchange rates supposes a reduction of the net financial debt of 213 million in the last 12 months.

.



Source link