Telefónica is committed to become the most efficient Telecom operator and to deliver sustainable profitable growth and long term industry leading total shareholder retrun (TSR).
The Group’s strategy focus on boosting profitable growth (revenue and OIBDA), capturing optionalty beyond the core, doubling down on simplicity and decreasing capital intensity. In addtion, we aim to maintain the strenght in our balance sheet, to improve ROIC and to maintain investment grade credit rating. Finally, ESG is also embedded in our ADN.
Resilience, execution and delivery
Robust FCF and well covered dividend
(€)
FCF/share
0.80
DVD/share
0.30
Delivering and upgrading our commitments
(organic)
| Targets | Initial 2023 guidance | Upgraded 2023 guidance | H1 23 |
|---|---|---|---|
| Revenue y-o-y organic | “Low single digit growth” | “~4% growth” | 4.1% |
| OIBDA y-o-y organic | “Low single digit growth” | “~3% growth” | 2.3% |
| CapEx/Sales organic | ~14% | Maintained ~14% | 12.7% |
2023 target of FCF ex spectrum of ~€4bn
Shareholder remuneration
| 2022 Dividend | €0.30/share | 2023 Dividend | €0.30/share |
|---|---|---|---|
| Dec-22 | €0.15/sh. (cash) | Dec-23 | €0.15/sh. (cash) |
| Jun-23 | €0.15/sh. (cash) | Jun-24 | €0.15/sh. (cash) |
ONGOING TREASURY STOCK CANCELATION
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- Profitable growth; optionality beyond the core
- Solid balance sheet and FCF; proactive approach to debt management, investment grade credit rating
- Smart capital allocation; investment peak left behind
- Outstanding infrastructure: fibre, 5G. Embracing industry-wide transformation
- Legacy shutdown and pioneers in alternative network models. Legacy copper switch-off in Spain by April 2024
- Simplification of portfolio of assets with a ROIC-based management
- Pricing actions, cost management, efficiencies, digitalisation, synergy models/economies of scale
- In-market consolidation (UK and Brazil)
- ESG leader in our industry
- Open Gateway initiative presented during MWC ’23, a joint effort for leading Telcos under GSMA sponsorship
- Several AI-based use cases developed in different areas; enhancing customer journey, network planning and optimisation of operations
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- Dividend for 2022 and 2023 of €0.30 per share in cash, each
- Ongoing cancellation of treasury stock
- Dividend Policy
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- Sector bringing back rationality (spectrum auctions)
- Pursuing fairer regulatory environments
- Fair share consultation process
Telefónica January-June 2023 results
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Telefónica is building a company for the future.