Telefónica’s UK subsidiary loses 4.250 million but increases revenue by 5%

The bulk of the negative result is due to deterioration in business reputation without an impact on cash. Adjusted EBITDA increased 5%.

Virgin Media O2 (VMO2)The UK mobile and fiber communications company, 50% owned by Telefónica and Liberty, lost a net £3.642 million (€4.253 million) in 2023, compared with a profit of £425 million (€496 million) the previous year. The change is mainly due to impairment of business reputation at £3,107 million in the fourth quarter of the year, driven by the impact that rising interest rates and the deteriorating UK macroeconomic environment will have on future cash flows.

The group explained that the net profit “does not reflect the cash flow generation of the business of £722 million in 2023 and forecast to be £500 million in 2024″ and that the impact of the adjustment to capital fund trading”does not affect the box“.

VMO2’s turnover was £10,923 million (€12,757 million), up 5.2% on 2022, and adjusted EBITDA was £4,102 million (€4,791 million), up 5%. ” factors The most notable aspects of this growth are the realization of synergies, higher prices for customers and increased efficiency,” driven by increased costs, including energy. VMO2 says it has reached two-thirds of its target in 2023. .

850 million to shareholders

The company explained that having distributed £2bn of cash to its shareholders in 2023, it plans to do the same this year with 850 million poundsfollowing the sale of a minority stake in subsidiary CTIL in the third quarter of 2023.

“Looking ahead, 2024 will depend on increased investment in important initiatives which enable future growth, which includes marketing, commercial activities and efficiency programs,” emphasized VMO2 CEO Lutz Schuller, who said the company was investing £2,000 million in 2023, which was a year of “further growth in fiber deployment.” .

Stabilization or decline in 2024

WMO2 In 2024, the company expects revenue to stabilize or decline slightly and adjusted EBITDA to decline by a maximum of 5%, excluding the impact of the Nexfibre investment.

net debt The company was trading at 3.64 times annualized adjusted EBITDA at year-end 2023, with an average rate of 5.2% and an average maturity of 5.7 years. VMO2 added 31,300 fixed-line telephone customers, a further 63,800 broadband customers and 46,600 mobile customers.