Telefónica further reduces debt with European expansion
Telefónica has announced intentions to resume its expansion across Europe as part of its debt reduction strategy.
Telefónica’s net debt dropped €2 billion to €49.82 billion in its Q2 financial results, and reaffirmed its target to cut borrowing to below €17 billion for the year.
The Spanish company has made several acquisitions in recent months, its latest being the deal Telefónica Deutschland signed with KPN for its German unit, E-Plus.
José María Alvarez-Pallete López, COO at Telefónica, said that the European telecoms market was in need of further consolidation, and he was confident that the deal with KPN would benefit customers in the region, according to the Financial Times.
Revenues for Q2 were reportedly ahead of analyst’s estimates, but Telefónica’s net income for the quarter fell 13.1% to €1.15 billion.
Earlier this month, Telefónica partnered with Virgin Media Business in the UK for the roll-out of superfast broadband.