Calling Card Finder

Phone Card News

Full Analysis of Telefonica by Zacks Rank

Telefonica, S.A. is growing by offering its customer base broadband internet services. This year's earnings estimates have risen 51 cents to $6.24 per share over the past month. Analysts expect earnings to grow another 13.6% next year. All five covering analysts have raised their estimates for this year over the past month.

Full Analysis

Telefonica, S.A., a diversified telecommunications group, provides fixed and mobile telephony services through telecommunication networks principally in Spain, Europe, and Latin America. Its fixed line telecommunication services, include public switched telephone network lines; integrated services digital network access; public telephone services; local, domestic, and international long distance and fixed-to-mobile communications services; corporate communications services; supplementary value-added services; video telephony; network services; leasing and sale of terminal equipment; and telephony information services.

The company's Internet and broadband multimedia services comprise narrowband switched access to Internet; portal and network services; retail and wholesale broadband access through asymmetrical digital subscriber line and satellite technologies; residential-oriented value-added services; IPTV, cable television, and satellite television; voice-over-Internet protocol services.

Telefonica continues to benefit from its market leadership position in Spain for fixed-line and wireless telecom as it aggressively offers its established customer base with broadband Internet services. Telefonica is also exploring the delivery of video content over DSL as it follows industry trends for triple play (voice, video, and data).

TEF has also enhanced its wireless offerings in Argentina, Chile, and Peru by acquiring BellSouth's wireless operations in Latin America. These moves are in line with the company's dual strategy of maintaining a leadership position in each of its core businesses while taking advantage of growth opportunities in new product categories and global markets.

Recently, Telefonica acquired a controlling stake in Telecom Italia. Telecom Italia owns TIM Participacoes, the second largest wireless carrier in Brazil (after Vivo). Vivo controls 28% of Brazil's wireless market and TIM Brasil approximately 26%. This deal provides Telefonica access to Telecom Italia s 25.4 million mobile customers in Brazil.

From a shareholder value standpoint, Telefonica has consummated most of its 6 billion Euro share repurchase program. The dividend payout strategy, along with ongoing share repurchases, support the view that Telefonica is a strategic investment consideration as part of a core European telecom portfolio.

Source:
http://www.zacks.com/rank/zcommentary/?id=6452

<<< Back for more news