BY UE STUDIO
Friday, 30July2021-09: 05
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Figures that endorse the strategic plan that began in 2019, with which
the company's transformation process
began
.
The generation of cash, the management of operations and the enhancement of important assets result in a stronger balance sheet and a better financial position.
The challenge was to build the new Telefónica, the Telefónica of
the next 100 years
now that the company is getting closer to its first centenary, a milestone that it will reach in 2024. The transformation process started in 2019 continues to gain speed and
generate results every year. more visible as
the implementation of the strategic plan continues to progress.
The management applied to
gain efficiency and resistance
and the corporate operations covered by this plan are fostering a stronger company, which has an increasingly solid financial position.
A strengthened position also thanks to a radical
debt reduction
.
In line with the large operations closed during the quarter, Telefónica's debt fell sharply
to 26.2 billion euros
, half that of five years ago.
At the same time, it has refinanced debt amounting to 4,681 million euros in the second quarter of the year, which allows the company to maintain
a solid liquidity position
, which increases to 26,924 million euros.
Capital gains from operations reinforce the Group's balance sheet, which is
gaining in efficiency and quality
thanks to the company's net worth increasing by more than 10 billion euros.
The figures for the first semester have also shown Telefónica's capacity to generate cash.
Excluding spectrum payments, the free cash flow generated up to June
has increased by 30.9%, to 1,613 million euros
, thus continuing the trend shown in previous years.
Thus, Telefónica closed 2020 with a cash generation of 5,000 million euros, up to a total figure of 25,000 million euros in the last five years.
Strategic plan
Also following the priorities set in the 2019 strategic plan,
the company continues to generate resources and optimize opportunities.
An example is provided by FiBrasil, a company owned 50% by CDPQ and Grupo Telefónica -25% Telefónica Infra and 25% Telefónica Brasil- to deploy fiber in Brazil as a wholesale vehicle. Together with the creation last year of UGG in Germany, it gives Telefónica Infra an increasingly relevant role in providing more inclusive connectivity. Additionally, Telxius, 50.01% owned by Infra, has strengthened its international network with Tannat, a new generation submarine cable that connects Brazil with Argentina
with its 2,000 kilometers in length.
Telefónica Tech, created in the 2019 plan, is accelerating its growth history with the increase in its revenues, which rose at
rates of over 25% in the first half
, and with alliances and acquisitions, such as the recent purchase of Cancom UK&I in United Kingdom for 400 million euros.
With regard to the four main markets, Spain has maintained European leadership in fiber deployment,
with more than 26.1 million real estate units (BUs)
, and 5G coverage that now reaches more than 80% of the population.
In addition to the aforementioned merger between O2 and Virgin Media to create a leading connectivity operator in the United Kingdom, there is also the maintenance of the commercial strength of Germany and Brazil.
In Hispam important advances have also been made to achieve a lower exposure of capital in the region, as evidenced by the vehicles created with KKR in Chile and Colombia to deploy fiber;
the generation of greater efficiencies
and the aforementioned reduction of risks through a greater proportion of debt in local currency.
In addition, revenues have seen a notable improvement in the region in the second quarter, with organic growth in all markets.
All of this shows the execution of the plan with which the company proposed to
accelerate its transformation process
.
The objective was to move towards the new Telefónica.
And the new Telefónica is becoming more and more visible.
MADE BY UE STUDIO
This text has been developed by UE Studio, creative firm of branded content and content marketing of Unidad Editorial, for TELEFÓNICA.
According to the criteria of The Trust Project
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