Link | Telefónica presented its results for the first half of the year (1H2024) yesterday, of which we highlight the following aspects:
- TEF’s net revenues rose 1.1% year-on-year between January and June to €20,395m, driven by higher service revenues in 2Q2024.
- Operating cash flow (OIBDA) rose 2.5% year-on-year in 1H2024 to €6,424 million. In terms of revenue, the OIBDA margin increased in the first half of the year to 31.5%, from 31.1% in 1H2023.
- After amortization and depreciation (+0.3% year-on-year), TEF’s net operating income (OI) reached €2,063 million, an improvement of 7.6% year-on-year. Moreover, in terms of revenue, the OI margin rose to 10.1%, up from 9.5% in the same period a year earlier.
- Profit before tax (PAT) closed June at €1,302 million, 16.9% higher than in 1H2023. Finally, TEF’s net attributable profit rose to €979 million, 28.9% higher than in 1H2023.
- Objectives: The Group’s H1 24 results are in line with 2024 targets and aligned with the Company’s expectations. Financial targets for 2024 are as follows (reported):
- Revenues +1.1% year-on-year in 1H2024 versus 2024 target of ~1% year-on-year growth or EBITDA +1.9% year-on-year in 1H2024 versus 2024 target of 1% to 2% year-on-year growth or EBITDAaL-CapEx +3.1% year-on-year in 1H2024 versus 2024 target of 1% to 2% growth.
- Year-on-year CapEx over revenues 11.3% in 1H2024 versus 2024 target of up to 13% FCF €163 million in 1H2024 versus 2024 target of >10% year-on-year growth
- Shareholder remuneration confirmed for 2024, and for the period 2024-2026.
- The second tranche of the 2023 dividend of €0.15 gross per share was paid on June 20, 2024.
- The 2024 dividend (€0.30 gross per share in cash) will be paid on December 19, 2024 (€0.15 gross) and June 2025 (€0.15 gross).
- Reduction of share capital in April 2024 through the cancellation of treasury shares (80,296,591).
- On the other hand, in relation to the subsidiary Colombia Telecomunicaciones, S.A. ESP BIC (Telefónica Colombia), TEF informed the CNMV that the group has entered into a non-binding agreement with the Millicom Group to explore a possible corporate transaction with respect to the assets that both groups have in Colombia. This potential transaction is subject to the signing of definitive agreements between the companies involved and to obtaining the corresponding regulatory approvals, and may involve the sale of TEF’s shares in Telefónica Colombia.
