Telefónica makes headway with reducing debt
Telefónica’s January to September results for 2012 indicate that the company has reduced its debt through asset sales.
Net debt dropped to €52.8 billion from €58.3 billion at the end of June, which is in line with the company’s objective of cutting its leverage ratio to 2.35 times by the end of this year.
In October, the company raised €1.45 billion through an IPO of its German unit. The company has also agreed to sell its call centre business Atento to Bain Capital Partners for €1 billion.
For the first time in the company’s history, the revenue generated by its Latin America operations exceeded its operations in Europe. Latin America now represents 49% of the company’s total turnover.
However, according to some reports, Telefónica could be planning to sell shares in its Latin America business in order to reduce debt further.