Telefonica: shares up on new action plan
(CercleFinance.com) - Spanish telecommunications giant Telefonica on Thursday unveiled an "action plan" intended to serve as a "catalyst" for the company's "transformation".
This plan consists of five strategic decisions, starting with a focus on the key markets of Spain, Brazil, the UK and Germany, the operator said.
Telefonica also announced the creation of Telefonica Tech, a unit that will bring together its digital businesses with high growth potential (cybersecurity, IoT/big data and cloud).
The plan also includes the creation of telecom infrastructure division Telefonica Infra, as well as the operational spin-off of Hispanoamerica, bringing together all the businesses in Latin America except Brazil.
Finally, Telefonica said it plans to launch the "redefinition" of its corporate centre, without elaborating further.
These measures will generate, amongst other things, over 2 billion euros in additional revenues, and a two-point increase in its operating cash flow margin by 2022, the group said.
The market liked this, with Telefonica shares up 1.8% in morning trading in Madrid.
"We see Telefonica's strategy reshuffle as a first step in the right direction," UBS analysts said. "Much more is needed," the broker added, citing the need for a dividend cut and disposals.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
This plan consists of five strategic decisions, starting with a focus on the key markets of Spain, Brazil, the UK and Germany, the operator said.
Telefonica also announced the creation of Telefonica Tech, a unit that will bring together its digital businesses with high growth potential (cybersecurity, IoT/big data and cloud).
The plan also includes the creation of telecom infrastructure division Telefonica Infra, as well as the operational spin-off of Hispanoamerica, bringing together all the businesses in Latin America except Brazil.
Finally, Telefonica said it plans to launch the "redefinition" of its corporate centre, without elaborating further.
These measures will generate, amongst other things, over 2 billion euros in additional revenues, and a two-point increase in its operating cash flow margin by 2022, the group said.
The market liked this, with Telefonica shares up 1.8% in morning trading in Madrid.
"We see Telefonica's strategy reshuffle as a first step in the right direction," UBS analysts said. "Much more is needed," the broker added, citing the need for a dividend cut and disposals.
Copyright (c) 2019 CercleFinance.com. All rights reserved.