Telefónica reports record Q2 income
July 29, 2021
Telefónica has posted a record net income of €7.7 billion in the second quarter of 2021. The Spanish multinational telco says this “historic figure” is the result of capital gains on the merger of O2 and Virgin Media in the UK and on the sale of the Telxius tower business.
Both transactions are two of the major operations carried out to implement the action plan announced by the Group in 2019. At the same time, the company says the figures reported in the first half of the year reflect the favourable effects achieved thanks to the management implemented, which are translating into a gradual return to growth and greater efficiency.
The closing of the mentioned two operations at the beginning of June was reflected in a net income of €8.6 billion achieved in the first half of the year. This is the highest in Telefónica’s history.
The completion of these transactions also led to a historic reduction in the Group’s net financial debt, which ended June at €26.2 billion, 29.5 per cent lower compared to June 2020. In the last five years, the company’s debt has been halved, from more than €52 billion in June 2016.
At the same time, capital gains from the operations have strengthened the Group’s balance sheet, which now has a more efficient capital structure that improves the quality of the company’s value, with an increase in equity of more than €10,000 million. Telefónica also has a solid liquidity position, which has increased to €26.9 billion.
“These results show that Telefónica is on the right track, executing its strategic plan as a critical accelerator in the company’s transformation process. Telefónica is consolidating its leadership as a company that takes advantage of all the opportunities offered by the digital revolution, as a responsible, sustainable company that is always committed to operational excellence,” said Telefónica Chairman José María Álvarez-Pallete.