Telefonica
Note: This is a daily stock update and the information stands true as of 04/11/25, 09:00 CET.
Company Update:
Expert Opinion:
Consolidation is the next move in the telecoms sector in Europe. So far, consolidation is national but could become cross-border. Telefonica's focus on generating cash to cut its debt is probably linked to that expectation and Telefonica is likely looking to consolidate the telecom sector, as a predator rather than a prey. More to come after today's CMD.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
The group released its Q3 results this morning and is concurrently hosting its CMD. The Q3 results align with expectations, showing a 0.5% revenue growth and a 1.2% EBITDA growth. Net profit came in below expectations mainly because of a €247m write-down on its Telefonica Tech unit. As for the CMD, no acquisition announcements are made. Chairman and CEO Murtra advocates for European consolidation to bridge the technology gap with the US and China, highlighting Europe's aversion to making tough decisions.
The main issue is that CEO Murtra also announced a 50% dividend cut for 2026. The stock has already declined by 6.5% over the past four days, and the market reaction may be... tough. This is part of the new strategic plan which focuses on debt reduction. While targeting an annual revenue and adjusted core profit growth rates of between 1.5% and 2.5% until 2028 and between 2.5% and 3.5% for the 2028-2030.
Expert Opinion:
Consolidation is the next move in the telecoms sector in Europe. So far, consolidation is national but could become cross-border. Telefonica's focus on generating cash to cut its debt is probably linked to that expectation and Telefonica is likely looking to consolidate the telecom sector, as a predator rather than a prey. More to come after today's CMD.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Subscribe to our blog
