Renta 4 | The management of Telefónica (TEF) is studying the incorporation of an industrial investor in its audiovisual affiliate Movistar+, according to El Economista newspaper.
Telefónica launched Movistar+ almost 7 years ago after the sale of Canal+ to the Spanish telco. The platform has two of its own channels (Cero and Vamos# ), themed channels created after the purchase of rights like Movistar Liga, Deporte, Cine, Toros or Series, and some which are of its own production. There are also third-party channels or platforms, like DAZN, Netflix or Disney+. Whatsmore, it has an online medical attention service Movistar Salud and a 50-50 venture with Prosegur Alarmas. It also has another 50-50 venture with Atresmedia, Buendia Estudios, which is focused on creating content in Spanish.
Revenues at Movistar+ would have reached 2.184 billion euros in 2021, while it registered an operating profit of 95,8 million euros and net profit of 74,2 million.
Valuation:
We believe that Movistar+ is a strategic asset for the group and a basic pillar of its convergent strategy of offering diferential services. We do not rule out the incorporation of a partner, but we consider that Telefónica has a large portfolio of assets which it could monetize and would be more interesting for the group. These include the underwater cable, Telefónica Tech or businesses in HispAm. We do not expect any impact on the share price. Recommendation: Outperform. Target Price 5,1 euros/share.
