Home Telefonica beats H1 profit forecasts, net debt on target Tags Español Telefónica refuerza la seguridad de las cadenas de bloques Author Related Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight…More Read more FinancialTelefonica Luz verde a la fusión entre Telefónica y Liberty Global en el Reino Unido Telefonica bolsters blockchain security AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 25 JUL 2013 Ken Wieland Previous ArticleGoogle unveils Android, Nexus 7 updatesNext ArticleOrange reports lukewarm H1 figures as tax dispute weighs Telefonica posted a better-than-expected H1 as lower financing costs helped earnings beat analyst forecasts. And even after committing to buy KPN’s E-Plus business in Germany in a deal worth around €8 billion, the Spanish giant maintained it was on target to push net debt below €47 billion by the end of 2013.Although H1 group sales fell 7.8 per cent, to €28.56 billion – largely due to falls in Europe and asset off-loading – lower taxes and financing costs meant net profit slipped just 0.9 per cent to €2.06 billion. A Reuters poll estimated a slightly lower net profit of €1.94 billion.More encouragingly, there were signs of improvement in the second quarter. Although sales dropped 6.8 per cent, to €14.4 billion, an average of estimates compiled by Bloomberg projected revenue of €14.1 billion.Second-quarter net income fell 13 per cent, to €1.15 billion, compared with analysts’ €1.1 billion average estimate.Including the disposals of 40 per cent of its business in Central America, 100 per cent in Ireland and Inversis, Telefonica’s net debt fell to €49.8 billion at the close of Q2, down €8.5 billion compared with June 2012 (and down €1.5 billion since December 2012).“Net debt level is heading in the right direction,” Paul Marsch, an analyst at Berenberg Bank in London, told Bloomberg. “Unless they have other ambitious plans they need to fund, I don’t see why they need to do any other significant disposals. Selling more assets would increase their exposure to Spain in the mix, and that would be inconsistent with what they have been doing lately.”Cesar Alierta, executive chairman, stressed in a statement the “significant progress” made in Telefónica’s on-going process of transformation during the second quarter of 2013. A programme, he said, which places the company in “a strong position both in terms of business and financial performance”.Alierta added that the results of the first six months are in line with internal estimates, allowing the operator to reaffirm annual operating and financial targets.Group-wide, mobile broadband is giving Telefonica a boost. Mobile broadband accesses stood at 63.3 million at the end of June, up 41 per cent since Q2 2012.There was a record 8.2 million net additions of smartphone users during Q2 2013 (threefold the figure in the first quarter and more than double the figure in the same period of the previous year). Smartphone penetration rate stood at 24 per cent of all Telefonica’s mobile accesses in June 2013.Mobile data revenues accounted for 36.4 per cent of mobile service revenues in the year (up 3 percentage points compared with the first half of 2012).There are still difficulties, not least in Spain where H1 sales plummeted 15.1 per cent, to €6.6 billion. However, Telefonica’s quad-play Movistar Fusion service continues to grow strongly in the country, reaching 2.2 million customers at the end of June (up from 1.5 million three months earlier).Telefónica’s revenues from Latin America amounted to €14.7 billion in the first six months of 2013, down 1.9 per cent from H1 2012.
Full Name* Share via Shortlink The signatories include a who’s who of New York real estate executives: Among the dozens of industry bigwigs included are Vornado Realty Trust’s Steven Roth, HFZ Capital Group’s Ziel Feldman, Related Companies CEO Jeff Blau, Douglas Durst, Blackstone Group’s Steven Schwarzman and Tishman Speyer’s Rob Speyer.This is the second letter that the Partnership has sent to de Blasio, calling for the city’s revival. The first asked for actions to be taken regarding public safety and other quality of life issues facing the city.The pandemic has had significant impacts on the city’s economy. In less than five months, the New York metropolitan region lost 1 million jobs and up to a third of the city’s small businesses are projected to permanently close. Additionally, the region’s affordable housing deficit is projected to increase by at least 150,000 units, according to a July report by the Partnership for New York City, which was cited in the new letter.Following the original letter, de Blasio called for office workers to return to the office and began a new cleanliness initiative focused on streets and parks.“It’s time to start moving, more and more,” de Blasio said at a press briefing Tuesday.Contact Sasha Jones Email Address* Share on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Message* TagsAndrew CuomoBill de Blasiopartnership for new york city Bill de Blasio and Andrew Cuomo, with (from left) Steven Roth, Jeff Blau, Rob Speyer, Douglas Durst, Ziel Feldman and Steven Schwarzman (Getty)Mayor Bill de Blasio and Gov. Andrew Cuomo’s mailboxes may be getting full.The Partnership for New York City sent another letter to the city and state’s top executives Friday, in which 177 business leaders offered to collaborate on a strategic plan for New York’s economic recovery.“As the first place in America to be struck hard by the coronavirus and the first to successfully manage its containment, New York should step up to chart the course for recovery of urban centers everywhere,” the letter reads.Read moreDe Blasio calls for return to the office, restores trash pickupsNYC real estate execs to de Blasio: Bring this city backFlip-flop on eviction ban extension highlights state’s chaotic response