Telefónica and results: Brazil (+ 13%) marks trend; cybersecurity and MWC

21/2/2018 – Article published previously in the blog “USA. And Emerging Markets “of CincoDí

Telefónica and its results: Brazil (+ 13%) sets trends; Cybersecurity and OpenFuture are the essentials, no matter how much the analysts look at trees that prevent them from seeing the forest. The company chaired by José María Álvarez-Pallete is the first company in Spain. It is worthwhile to focus on what is important.

The focus of the market is on the possible corporate movements of Telefónica to reduce debt, from an IPO of the British subsidiary O2 as possible divestments in Latin America. Also, expectation for auctions of television rights for football. Telefónica, at the moment, is negotiating an agreement to integrate Netflix in Movistar +.

In the United States we call that “business as usual”. I think it is much more important than Telefónica Brasil, one day before the company announces results in Spain, say that it gains 12.8% more in 2017. Telefónica Brasil obtained a net profit of 4,609 million reais (1,149 million euros) in 2017 , which represents an increase of 12.8% compared to the 4,085 million real (1,018 million euros) that it won the previous year, thanks to its strategy “focused on data and value”.

Total revenues of Telefónica Brasil in its last fiscal year reached 43,207 million reais (10,767 million euros), 1.6% more than in 2016, while service revenues increased 2% to 42,136 million of reals (10,500 million euros).

The recurring gross operating profit (Oibda), that is, excluding extraordinary items, increased by 7.3% over the year as a whole, thanks to both the growth in revenues and the efficiency measures adopted by the company. In fact, he adds that recurring operating costs fell for the eighth consecutive quarter.

The Digital Telco informs that, in line with the forecast, Telefónica Brasil has invested (capex) almost 8,000 million reais (1,993 million euros) during the whole year. This means investing 18.5% of operating income for the period.

Specifically, the investment has been mainly destined to the expansion of the 4G network, which already reaches almost 85% of the Brazilian population after incorporating 2,084 new cities to this technology in 2017, and to bring the optical fiber to 16 new municipalities, form that already covers 87 cities with FTTH.

In the fourth quarter, Telefónica Brasil earned 1,517 million reais (378 million euros), 24.9% more than a year ago, while its revenues rose 1.5% to 11,034 million reais (2,749 million reais). millions of euros).

On the other hand, the number of total accesses reached 97.8 million, 0.7% more than a year ago, of which 74.94 million were mobile services (+ 1.6%) and 22.86 million of fixed services (-2.1%).

Cybersecurity: Strategy “” Security by default “

This is serious. It is one of the most important needs / trends in the market. Telefónica and McAfee have reached an agreement to strengthen Internet security for Telefonica’s broadband and mobile customers in the European and Latin American markets. The solution will be implemented progressively from June 2018.

This collaboration is the first time that a telecommunications company provides protection for all customers through the Internet access router, which is key to completing the “Security by default” strategy that Telefónica launched two years ago and which has goal to help ensure the protection and privacy of the company’s customers while they are connected to the Internet.

Telefonica will integrate McAfee® Secure Home Platform into broadband routers for efficient, transparent and simple security for all devices connected to the network, including IoT devices, which will soon be ubiquitous (devices such as home automation systems, platforms of game, wearables, smart televisions and domestic appliances). To provide a unified security experience, McAfee’s endpoint solution will continue to protect Telefónica customers even outside their homes.

The incorporation of McAfee to the security solution developed by Telefónica together with other companies will complete the vision of the “Security by default” strategy, since it offers security to all devices against threats such as viruses, malware, identity theft and the incipient threats to the IoT.

Telefónica Open Future_ will give a lot to talk about at the Mobile World Congress. It is a global platform designed to connect entrepreneurs, startups, investors and public and private partners from around the world to capture innovation and business opportunities. Its objective is to support talent in all stages of growth through a comprehensive model of acceleration and connection with organizations, investors and companies. The program integrates all the initiatives of open innovation, entrepreneurship and investment of the Telefónica Group (Think Big, Talentum Startups, Crowdworking, Wayra, Amérigo Investment Funds, Telefonica Ventures Corporate Funds) through a global network that opens to the incorporation of external partners who want to develop their own strategies of entrepreneurship and investment, and connect them with large companies. To date, more than 54,000 proposals have been received and it has been invested in more than 783 startups, having accelerated a total of more than 1,700. Telefónica Open Future_ has a presence in 17 countries and, together with its partners, has committed more than 425 million euros for investment since 2011.

It is time to defend our own, Spanish, as English and French do with Vodafone and Orange, respectively.