• November 2014
    M T W T F S S
    « Oct   Dec »
     12
    3456789
    10111213141516
    17181920212223
    24252627282930
  • Pages

  • Marginalia

  • Accumulations

A Snapshot | Telefonica S.A. (ADR)

hireme

The following is the sort of shovel work my freelance translation practice churns out, on a good day.  Inquire within. In the meantime, I am testing the screenshot editor Shutter.

Spanish company reports earnings of € 2,849 million euros in the first three quarters, 9.4% less than the same period in 2013.

The Spanish telecoms giant posted net earnings of € 2,849 million between January and September, representing a fall-off of 9.4% over the same period last year, according to a Material Fact and Notice filed with the Spanish market regulator, the CNMV.

The company said that the fall-off in results was related to the depreciation of certain assets in the countries where it operates.

Telefónica recorded turnover of €  37,978 million in the first three quarters, representing a decline of nearly 11% compared with the previous period.

Outperform

telefonica - Google Search - Google Chrome_003

Despite the fall-off, the group outperformed expectations of analysts consulted by Reuters, who had predicted  37.929 and net earnings of  2,837 million.

As of December, the company’s net debt fell to  41,200 million.  The media operator explained that with the  incorporation of such dealings as the purchase of the German E-Plus, its indebtedness will grow to €  44,879 million by year’s end, which is, however, € 500 million less than in the previous comparable period. 

According to an August  19 company release,

Telefonica Brasil SA: Says on Aug. 18 it approved payment of own capital interests for fiscal year 2014 totaling 299,385,000 Brazilian reais gross (net value of 254,477,250 reais). Sets the gross value at 0.250016158897 reais per ordinary share and 0.275017774786 reais per preferred share. Record date Aug. 29.Ex-interest date after Aug. 29.

Less routine was the March 6, 2013 announcement that it had

… opened a voluntary buyout program to cut 1,000 jobs, as the Company works to keep down costs and overhaul its flagging fixed-line operations. The Company said it was carrying out an administrative reorganization to maintain competitiveness.

Among its global operations, Telefônica is a powerful and controversial actor in Brazilian telephony — fixed and cellular, under the Vivo trademark. Its presence in the market dates back to the still controversial telecom privatizations of the late 1990s and the deal that pitted it against the joined forces of Brasil Telecom and Oi, now known jointly as Oi and informally as BrOi.

For a current vivisection of the company at this moment, I would probably reach out first to the publishers of Teletime, whose institutional memory and hard-ball reporting instincts makes it one of Brazil’s most useful sources in any field.

Country by Country

By country, revenue in Spain shrank 8% between January and September, to €8,985 million. In Brasil, where through its Vivo subsidiary is the dominant operator in the country and a direct competitor of Oi (ex-BrOi), profits were € 8.380 million, representing a decline of 9,6% over the same period last year.

In the rest of Latin America, the company booked a loss of € 11,000 million, down 12% from the same period in 2013.

Source:  Jornal de Negócios.

In Brazil, meanwhile, according to Teletime,

O leilão pelos ativos operacionais da Oi em Portugal, herdados com o aumento de capital para fusão entre a brasileira e a Portugal Telecom se intensificou oficialmente. Em fato relevante encaminhado à Comissão de Valores Mobiliários (CVM) no início da manhã desta quarta-feira, 12, a Oi informa ter recebido uma proposta conjunta dos fundos de investimento Apax Partners e Bain Capital para a compra de ativos da PT Portugal SGPS que avalia a empresa em 7,075 bilhões de euros, excluindo caixa e dívida. A proposta é 50 milhões de euros superior ao preço estipulado pela francesa Altice e, assim como ela, inclui no valor total um earn-out (pagamento diferido) de 400 milhões sujeito à geração futura de receitas e de outros 400 milhões condicionado à geração de EBITDA.

A proposta dos fundos também não inclui os negócios na África nem os títulos da dívida da Rioforte, que passaram a ser ativos da PT SGPS – alvo esta da oferta da bilionária angolana Isabel dos Santos.

A proposta do fundo Apax junto com o Bain de certa forma não é uma surpresa. O mercado já tinha conhecimento do interesse da Apax nos ativos portugueses. A oferta será agora avaliada pelo conselho de administração da Oi, que tem sobre a mesa duas propostas para a compra das operações em Portugal. Vale lembrar que a oferta pública de aquisição (OPA) de 1,21 bilhão de euros de Isabel dos Santos tem como alvo as ações da PT SGPS, que não tem mais os ativos operacionais – lista apenas como ativos os títulos de divida de 897 milhões da Rioforte, a participação de 25,6% na Oi, além da opção de compra por seis anos de 16,6% do capital da brasileira, e impõe como condicionante que a Oi não venda seus ativos operacionais. O conselho de administração da Oi já se posicionou rechaçando as condicionantes da Oi da empresária que é filha do presidente de Angola.

At around the same time last August, it was reported that Telefonica cast jealous eyes on the smaller GVT. Source: Teletime.

The battle of the Italians and Spaniards may have found a new venue. According to an article published by the Italian daily La Repubblica, citing “trustworthy sources”,  Telefónica has asked major international banks to prepare an offer to the Brazilian GVT, currently controlled by Vivendi. The maneuver could be a reaction to Telecom Italia’s attempt to merge its TIM Brasil subsidiary with GVT, a proposal that counts on such Italian banks as Mediobanca and  Intesa Sanpaolo (the same banks that partnered with Telefonica in Telco, the majority shareholder of Telecom Italia).

If true, the move may indicate a strategic change by Telefónica: instead of trying to encourage the sale of  TIM Brasil by investment and despite the speculations about buying Oi and dividing it up among the other players in the market  (Vivo, Claro and Oi).  Telefónica could be trying to put a stop to a potential merger between GVT and TIM Brasil, creating a powerful competitor for services and convergent networks.

According to the Italian daily, Telefónica CEO Cesar Alierta tried to dissuade the Telecom Italia shareholders from making an offer for GVT, but failed. Then, after  some discussions with Vivendi, Alierta reportedly ask GVT for a counteroffer to these “major banks.”