Latest news with #TelefonicaTech
Bloomberg
07-05-2025
- Business
- Bloomberg
Telefonica Is Said to Weigh Revamp of Its Technology Unit
Telefonica SA is drafting plans to revamp its technology business, as part of a broader strategic review of Spain's largest carrier, according to people familiar with the matter. Several executives are unhappy with the performance and contribution of the Telefonica Tech unit, which offers cybersecurity, cloud, AI and other services to businesses, said the people, who asked not to be identified because the discussions aren't public. Chairman Marc Murtra, who joined in January, is unimpressed with the unit, two of the people said.
Yahoo
05-03-2025
- Business
- Yahoo
International Business Machines (NYSE:IBM) and GMG Partner to Enhance Growth and Market Opportunities
International Business Machines experienced an 8% increase in its share price over the last quarter, set against a backdrop of mixed market performance where major indexes have been wavering due to economic data and tariff concerns. IBM's upward momentum can be linked to several key developments, such as its expanded partnership with Genuine Marketing Group Inc., which provides significant co-sell support and resources. Additional alliances with Juniper Networks and Telefonica Tech suggest an emphasis on enhancing technology offerings like AI integrations and quantum-safe security solutions. These strategic collaborations likely reinforced investor confidence in IBM's innovation-driven approach. Meanwhile, IBM's Q4 earnings results and robust 2025 revenue guidance may also have bolstered market sentiment. While the broader market saw a 3% drop recently and has shown volatility, IBM's targeted initiatives appear to have been a bright spot, influencing its positive performance during this period. Click here to discover the nuances of International Business Machines with our detailed analytical report. Over the past five years, IBM has achieved total shareholder returns of 167.10%, reflecting both share price appreciation and dividend distributions. Two significant factors have influenced this long-term performance: strategic alliances and key product launches. Striking partnerships, such as the integration with SAP announced in early 2022, bridged critical transitions to cloud computing, enhancing IBM's market presence. Regular product innovations, like the launch of the IBM POWER10 processor in August 2020, positioned IBM effectively within the technological advancements space. During the past year, IBM outperformed both the US market and the IT industry, which returned 13.1% and 12.3% respectively. Significantly, the recent partnership with Salesforce has further propelled enterprise AI initiatives, indicating robust future potential. The consistent dividend declarations, notably since 1916, underscore IBM's established commitment to shareholders, complemented by collaborative growth projects such as the development of quantum-safe security solutions with Telefonica Tech. These actions solidified IBM's market stance, supporting positive investor sentiment. Get the full picture of International Business Machines' valuation metrics and investment prospects—click to explore. Uncover the uncertainties that could impact International Business Machines' future growth—read our risk evaluation here. Got skin in the game with International Business Machines? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IBM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Telefonica SA (TEF) Q4 2024 Earnings Call Highlights: Strong Free Cash Flow Growth and ...
Free Cash Flow: EUR2.6 billion, representing 14% growth year-on-year. CapEx to Revenue Ratio: 12.9%. Leverage: Reduced to below 2.6 times. Revenue Growth: 5.4% in Q4. EBITDA: Flat year-on-year in Q4. Net Financial Debt: EUR27.2 billion, with a net debt-to-EBITDAaL ratio of 2.58 times. Revenue Telefonica Spain: 1.3% year-on-year growth in Q4. Revenue Telefonica Brasil: Close to 8% increase in local currency. 5G Coverage Germany: Exceeding 97% population coverage. 5G Coverage UK: Reached 75%, an improvement of 24 percentage points year-on-year. Telefonica Tech Revenue: Exceeded EUR2 billion, with 10% growth year-on-year in Q4. Fiber Premises Passed: 25 million by year-end. Free Cash Flow Growth: 14.1% in 2024. Dividend: EUR0.3 per share in cash for 2025. Warning! GuruFocus has detected 5 Warning Signs with TEF. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Telefonica SA (NYSE:TEF) delivered within its 2024 guidance ranges across all metrics, with a notable 14% year-on-year growth in free cash flow. The company achieved strong commercial momentum in core markets, with Spain experiencing full year-on-year growth in all accesses for the first time since 2018. Telefonica SA (NYSE:TEF) maintained a CapEx to revenue ratio of just 12.9%, demonstrating industry-leading capital efficiency. The company successfully reduced leverage to below 2.6 times while maintaining strong dividend coverage. Telefonica Tech, a key growth driver, exceeded the EUR2 billion revenue mark, with a 10% year-on-year growth in the last quarter of 2024. The strategic review process is expected to take until the second half of 2025, which may delay potential strategic changes. Telefonica SA (NYSE:TEF) faces challenges in the European telecom industry due to market fragmentation and regulatory hurdles. The company experienced a decline in revenue in Germany by 3.7% year-on-year in Q4, impacted by MTR headwinds and tough handset comparisons. There is increased competitive intensity in the German market, affecting pricing dynamics. The sale of operations in Argentina and the insolvency procedure in Peru indicate ongoing challenges in the Hispam region. Q: Why did Telefonica decide to put the midterm guidance on hold, and what are the prospects for in-market mobile consolidation? A: Marc Murtra, Chairman and CEO, explained that the decision to focus on 2025 guidance rather than midterm guidance is to allow strategic flexibility during their strategic review. He reassured that nothing has changed regarding their previous statements. Regarding in-market consolidation, Murtra noted potential flexibility but emphasized the need for a strategic review to analyze the broader European market changes. Q: Can you clarify the strategic priorities for Telefonica's core businesses, particularly in Spain and Brazil, and the criteria for evaluating market presence? A: Marc Murtra stated that there is no nuance in their strategic priorities, emphasizing strong positions in Spain, Brazil, Germany, and the UK. The strategic review will focus on operational rationale, improving margins, and consolidating markets to enhance scale and efficiency. The European market's fragmentation is seen as an opportunity for improvement. Q: What are Telefonica's plans regarding the tech space, and how does it relate to potential M&A or organic growth? A: Marc Murtra highlighted that Telefonica will focus on areas where it has proven know-how and existing operations, particularly in telecom infrastructure. The strategic review will determine whether growth will be pursued through M&A or organic investments, with decisions based on net present value analysis. Q: How does Telefonica plan to address its leverage and balance sheet concerns, and why is the strategic review expected to take until the end of 2025? A: Laura Abasolo, Chief Financial and Control Officer, emphasized strong free cash flow as the main driver for deleveraging. The strategic review is expected to conclude before the end of 2025, allowing time for thorough analysis without setting an artificial deadline. Q: What is the outlook for Telefonica's operations in Spain, particularly regarding revenue and OpEx? A: Angel Vila Boix, Chief Operating Officer, projected revenue growth in Spain for 2025, driven by retail and B2B segments. EBITDA is expected to grow by low single digits, supported by continuous efficiencies and a favorable revenue trajectory. The company aims to maintain EBITDA margins in line with 2024. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
