|Bid||5.95 x 0|
|Ask||5.95 x 0|
|Day's Range||5.94 - 6.05|
|52 Week Range||5.86 - 8.06|
|Beta (3Y Monthly)||1.00|
|PE Ratio (TTM)||9.83|
|Forward Dividend & Yield||0.40 (6.67%)|
|1y Target Est||N/A|
(Bloomberg) -- Phone carriers are huge energy users, and need to cut emissions. They also face massive bills to build out the next generation of wireless networks. Green bonds promise to help them with both.A steady flow of issuance could be building: Orange SA and BT Group Plc are poised to follow Telefonica SA and Verizon Communications Inc. in selling securities designed to fund environmentally friendly projects. The industry has already completed at least $3 billion of sales since January, its first steps into a sustainable debt market that Bloomberg New Energy Finance estimates could exceed $370 billion this year.The proceeds can help telecom companies replace power-hungry copper wires with fiber-optic cables, or build the 5G networks that promise to make cities, homes and factories more efficient. There’s plenty of investor appetite for this new take on sustainable investing, but there’s a catch: any hint that a bond doesn’t genuinely help the planet can cause some buyers to flee.“Telecoms have to invest a lot. In the long run, having green bonds in place is going to be very important,’’ said Juuso Rantala, who holds Telefonica’s green bond in the 400 million-euro ($449 million) fund he manages at Aktia Asset Management Ltd. in Finland. “If I find out that I cannot trust the company in the case of green bonds, I cannot trust them in many other ways too. If I cannot trust them, I don’t invest.’’The securities show how green debt is expanding beyond its original universe of the clean energy industry. Beef supplier Marfrig Global Foods SA and Australian retailer Woolworths Group Ltd. have tapped this market to help their operations become more environmentally friendly.For carriers, the task is urgent. The communications industry accounts for about 10% of global electricity demand, and that could exceed 20% by 2030 as demand for data balloons, according to Huawei Technologies Co.Telecom companies have ways to clean up their act. For example, replacing copper with glass wires would use 85% less energy, according to Telefonica. And 5G can enable a range of environmental benefits by allowing smart buildings to monitor heating, connected warehouses to optimize their logistics and power grids to better allocate electricity.But these companies are already staggering under a mountain of debt from, among other things, buying 5G licenses. They’ll need to make sure they can keep their borrowing costs low and tap investors when needed.That’s where green bonds can help: the interest costs are about the same as on these companies’ conventional securities, but they offer the opportunity to access a wider pool of investors.The share of funds focused on socially responsible investing, which includes environmental projects, has risen 34% over the last two years, and now accounts for $30.7 trillion of assets globally, according to the investor group Global Sustainable Investment Alliance.“Many more green telco bonds are likely,” Morgan Stanley analysts led by Emmet Kelly wrote in June. “Demand from funds that have incorporated sustainability into their investment framework has been key.’’Telefonica, based in Madrid, is a good example. Demand for the issue, which priced in January, was significant: the company received five times the orders than what was available for sale, and obtained a spread more than the mid-swap rate that was about 25 basis points lower than initial indications.The yield on the 1 billion-euro 5-year security is in line with the rest of its curve, Bloomberg data show, indicating it didn’t have to pay a premium to tap demand for sustainable credit. It’s a similar story for Verizon and Vodafone Group Plc.Orange and BT Group are paying attention -- they have inserted clauses into their Eurobond prospectuses which would let them issue green bonds in the near future. And Deutsche Telekom AG is monitoring the surging market closely, said a spokesman.For investors, the risks go beyond what’s expected for any fixed-income asset. Buyers also have consider just how green these bonds are.“The question is whether or not a bond offers a real energy efficiency gain or overall gain for the environment,’’ said Arnaud-Guilhem Lamy, who holds telecom securities in his 340 million-euro ($381 million) green bond fund at BNP Paribas Asset Management in Paris. “If we think it’s insufficient, we would sell.’’For a start, there’s always the possibility that this new breed of green-bond borrowers divert proceeds to inappropriate purposes, including pooling them into general funds. Though monitoring groups such as credit rating firms can discourage such behavior, it’s something investors need to watch.But 5G presents a particular environmental paradox.Internet-of-things technologies will connect billions more devices and require many more antennas, so 5G will initially use more power than 4G, according to Sustainalytics, an independent corporate sustainability research firm. This complicates the idea that 5G can be a green investment.However, Sustainalytics estimates the energy savings from 5G outweigh the extra emissions to deploy the new tech by a ratio of 5 to 1. The firm’s analysis of the Verizon bond issue, which included 5G deployment among the potential use of proceeds, found that it was a credible candidate for green financing.It’s a good thing, because Verizon plans on returning to this corner of the bond market. It looks like it will be welcome, too – its $1 billion issue of 10-year green debt was eight times oversubscribed within six hours of being offered for sale, said Jim Gowen, head of supply chain and sustainability for the U.S. carrier.“It was far beyond our wildest expectations,” Gowen said. “We are very interested in doing another one.’’\--With assistance from Paul Cohen and Lyubov Pronina.To contact the reporter on this story: Thomas Seal in London at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A weak performance at home overshadowed a forecast-beating rise in second quarter earnings at Spain's Telefonica on Thursday, although the telecoms group saw better times ahead for its largest market. Shares in Europe's third-biggest telecoms firm fell as much as 2.6% after it reported a drop in quarterly margins and barely any growth in revenues in Spain, which accounts for more than a quarter of group core profit and sales.
(Bloomberg) -- Telefonica SA sales stabilized in the second quarter as the phone carrier benefited from price hikes for premium products in Spain, supporting its annual outlook for growth and putting an end to almost two years of declining revenues.Revenue was flat at 12.1 billion euros ($13.5 billion), the company said in a statement on Thursday. That compares with the 12 billion-euro average of six analyst estimates compiled by Bloomberg.Key InsightsThe stabilizing sales may give investors confidence in the former monopoly’s target of increasing organic revenue by 2% in 2019. The carrier is relying heavily on growth in Spain to reach that goal after a tough first quarter largely because of competition. The company reiterated its sales target on Thursday.Revenue is expected by analysts to improve in the second half, underpinning an expected gain in operating income before depreciation and amortization, known as Oibda.The stable revenue puts an end to seven quarters of declining sales, with the previous increase having been in the second quarter of 2017. The changing trend was mainly supported by higher revenues in the U.K. and Germany, as well as Spain.Market ReactionTelefonica rose 0.5% to 7.32 euros per share at the start of trading in Madrid. The shares shares are down less than 1% this year, outperforming the broader Stoxx 600 Telecom index’s 2.8% decline.Get MoreClick here for the earnings reportOibda rose to 4.438 billion euros, in line with the 4.4 billion-euro average analyst estimate compiled by Bloomberg.(Updates with share price under Market Reaction section.)To contact the reporter on this story: Rodrigo Orihuela in Madrid at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Dave McCombsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Britain on Monday postponed a decision on whether Huawei could participate in building next-generation 5G mobile networks until it had a clearer picture of the impact of U.S. measures taken against the Chinese company. "These measures could have a potential impact on the future availability and reliability of Huawei's products, together with other market impacts, and so are relevant considerations in determining Huawei's involvement in the network," Digital Minister Jeremy Wright told parliament.
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It will be much harder for El Salvador's prison population, including gang leaders, to communicate with those on the outside after the government on Friday ordered mobile telephone service providers to disable their signals in the facilities. The decision by President Nayib Bukele, who took office earlier this month, is aimed at reducing the country's high murder rate and other violent crimes, which he says are often ordered by those behind bars. The country's mobile telephone providers, including Claro, Tigo, Digicel and Telefonica have 72 hours to comply with the order, Bukele said in a post on Twitter.
Brazilian telecoms regulator Anatel on Thursday approved a plan to coordinate investments among public and private players aimed at increasing access to broadband in Latin America's largest economy. Brazilian units of Telefonica SA, Telecom Italia SpA and Oi SA have been rushing to expand their fiber-to-home (FTTH) broadband service in Brazil. According to Anatel, the plan, named PERT, coordinates both public and private initiatives, in order to widen the access to fiber and, in cities where this is not possible, allows connections via satellite or other technologies.
British telecom companies should show "all due caution" before using China's Huawei equipment in their 5G networks because the government cannot ignore the warnings from the United States, its digital minister said. Britain has found itself caught up in the diplomatic row between Washington and Beijing after the Trump administration told allies not to use Huawei's 5G equipment for fear it could allow China to spy on sensitive communications and data. Britain's National Security Council, chaired by Prime Minister Theresa May, had agreed in April to allow Huawei restricted access to non-core parts of the 5G network, but that decision has been put on hold following the U.S. intervention.
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PayJoy, a startup that has developed smartphone technology to facilitate access to credit in emerging markets, has raised $20 million from venture capital firm Greylock Partners, the company said on Thursday. Union Square Ventures, EchoVC and Core Innovation Capital also participated in the round, PayJoy said. The San Francisco-based startup said it will use the funding to expand, secure more partners and develop new technologies.
El Salvador's competition authority has rejected Mexican telecoms firm America Movil's bid to acquire a local unit of Telefonica, but the company controlled by the family of billionaire Carlos Slim vowed to try again. In January, Spain's Telefonica reached a deal to sell operations in Guatemala and El Salvador to America Movil. In a statement on Tuesday, the Superintendence of Competition (SC) said the bid by America Movil, which is controlled by the Slim family, was "inadmissible" and that the company had been informed of the decision dated April 29.
El Salvador's competition authority on Tuesday said it had rejected a bid by Mexican telecoms company America Movil to acquire the local unit of Spanish rival Telefonica, arguing the planned takeover did ...
LONDON/MUMBAI (Reuters) - Time to abandon the Huawei phone? Google said on Monday it would comply with an order by U.S. President Donald Trump to stop supplying Huawei, meaning it would no longer be able to offer its popular Android apps to buyers of new Huawei phones. The order to U.S. companies could affect tens of millions of consumers in Europe, its biggest market outside mainland China.
MADRID (Reuters) - Spain's Telefonica is reviewing a U.S. order which hit Chinese telecoms giant Huawei with severe sanctions, to see if it will affect its customers, a spokeswoman for the group said on ...