TNE5.F - Telefónica, S.A.

Frankfurt - Frankfurt Delayed Price. Currency in EUR
6.01
+0.09 (+1.55%)
At close: 7:19PM CEST
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Previous Close6.00
Open6.00
Bid6.00 x 700000
Ask6.04 x 700000
Day's Range5.89 - 6.03
52 Week Range5.87 - 8.04
Volume77,670
Avg. Volume6,921
Market Cap31.346B
Beta (3Y Monthly)0.66
PE Ratio (TTM)9.95
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield0.40 (6.76%)
Ex-Dividend Date2019-12-17
1y Target EstN/A
  • Power-Hungry Phone Companies Dial Into Surging Green Bond Market
    Bloomberg

    Power-Hungry Phone Companies Dial Into Surging Green Bond Market

    (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 tseal@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Atento S.A. (ATTO) Q2 2019 Earnings Call Transcript
    Motley Fool

    Atento S.A. (ATTO) Q2 2019 Earnings Call Transcript

    ATTO earnings call for the period ending June 30, 2019.

  • Telefonica, S.A. (TEF) Q2 2019 Earnings Call Transcript
    Motley Fool

    Telefonica, S.A. (TEF) Q2 2019 Earnings Call Transcript

    TEF earnings call for the period ending June 30, 2019.

  • Telefonica builds profit hopes on shaky Spanish ground
    Reuters

    Telefonica builds profit hopes on shaky Spanish ground

    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 Halts Seven-Quarter Sales Slump on Price Hike

    (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 rorihuela@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Dave McCombsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Millicom International Cellular SA (TIGO) Q2 2019 Earnings Call Transcript
    Motley Fool

    Millicom International Cellular SA (TIGO) Q2 2019 Earnings Call Transcript

    TIGO earnings call for the period ending June 30, 2019.

  • Reuters

    El Salvador takes aim at imprisoned gang leaders ability to make calls

    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.

  • Rise of Online Video Opens Up Business for Nokia
    Market Realist

    Rise of Online Video Opens Up Business for Nokia

    Can Nokia Capitalize on Huawei’s Plight in Canada?(Continued from Prior Part)Nokia to help improve Telefónica network for video trafficTelefónica Spain recently adopted Nokia’s (NOK) Deepfield Cloud Intelligence for greater visibility into

  • Reuters

    El Salvador rejects Slim's bid for Telefonica unit; Slim to try again

    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.

  • Reuters

    El Salvador rejects America Movil bid to buy Telefonica unit

    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 ...

  • Reuters

    Spain's Telefonica says is reviewing U.S. Huawei order

    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 Monday. "We are reviewing the details of the executive order to understand any potential implications for our customers," the spokeswoman said. The executive order, which was announced on Wednesday, barred Huawei from acquiring components and technology from U.S. firms without government approval.

  • When Digitization Isn't The Answer to Your Prayers
    Bloomberg

    When Digitization Isn't The Answer to Your Prayers

    Telefonica SA is illustrating why. The former Spanish national carrier is midway through a digital transformation program, and has succeeded in realizing almost two thirds of the 1 billion euros ($1.1 billion) in savings it’s targeting by the end of next year. Digitization can only take you so far.

  • Reuters

    Telefonica sees Spain, services helping to meet 2019 guidance

    Spain's Telefonica expects improvements in its home market, service revenues and more efficient use of digital technology to help boost earnings growth and meet full-year guidance, the company said on Friday. Large telecoms operators across Europe are battling to maintain growth in the face of strong competition from low-cost rivals, while at the same time investing heavily in next-generation mobile networks and fibre broadband. Telefonica said its revenue growth trend improved in the first quarter.

  • Bloomberg

    Telefonica Profit Rises After Digital Push Bears Fruit

    Key InsightsTelefonica Chairman Jose Maria Alvarez-Pallete is pushing artificial intelligence and other technology throughout the company’s networks to cut costs and improve efficiencies. Oibda was negatively impacted by poor performance in the embattled Mexican unit, where it declined 46 percent in the quarterNet debt is set to drop to 38.7 billion euros after Telefonica receives proceeds from asset sales. Telefonica, which long faced investor concerns about its debt, may now have financial flexibility to pursue acquisitions for growth.

  • Dark Horse in 5G Auction Is Trouble for Telefonica
    Bloomberg

    Dark Horse in 5G Auction Is Trouble for Telefonica

    Telefonica SA’s local unit is at particular risk of losing out. The Spanish carrier is bidding alongside Deutsche Telekom AG, Vodafone Group Plc and 1&1 Drillisch AG in the auction for 5G spectrum: the radio bandwidths for next-generation telecommunications. The unbalanced distribution of the spectrum from the auction so far suggests it has some way to go, according to Bloomberg Intelligence analyst Erhan Gurses.

  • Morningstar

    Communication Services: 5G Wireless Will Prove More Evolutionary Than Revolutionary

    After faring far better than the broader stock market during the sharp sell-off in late 2018, the Morningstar Global Communications Index has increased only about 10% so far during the first quarter, similar to the 11% return of the market in the same period. Despite this rocky performance, we continue to believe that Europe offers a particularly attractive hunting ground for value within our telecom coverage. Excitement around 5G wireless technology has steadily built in recent months, with the first 5G-capable mobile devices hitting the market and initial in-home wireless broadband trials, notably at Verizon, ramping up.

  • ATENTO SA (ATTO) Q4 2018 Earnings Conference Call Transcript
    Motley Fool

    ATENTO SA (ATTO) Q4 2018 Earnings Conference Call Transcript

    ATTO earnings call for the period ending December 31, 2018.

  • Morningstar

    Market Underestimates Telefonica

     Telefonica TEF is the incumbent telephone operator in Spain and, along with America Movil AMOV / AMX , it is one of two dominant operators in Latin America. Thanks to its acquisition of E-Plus in Germany, it is the largest wireless operator by number of subscribers in the country. It is also the second-largest wireless operator in the United Kingdom.

  • Morningstar

    12 High-Quality Foreign Stocks on Sale

    These wide- and narrow-moat international stocks are trading well below our fair value estimates.