Telefónica on track with European revamp, claims COO

Tools

Telefónica is on course with reshaping its European operations, reported its Chief Operating Officer José María Álvarez-Pallete.

The exec also dismissed any concerns over a slowdown in its Latin American business, adding that no decision had been made whether to float some of its subsidiaries in the region, according to Dow Jones Newswires.

However, Álvarez-Pallete was unable to provide any details of what operational improvements have been achieved by its European operations, but he told Dow Jones that further information would be revealed when Telefónica announced its full-year results on Feb. 28.

But Álvarez-Pallete confirmed that Telefónica continues to focus on reducing its debt mountain of €56 billion--as of September--and noted that its ability to generate cash flow was improving.

The COO also quashed prior speculation that its UK Telefónica O2 business would be floated this year. "We don't feel the need to IPO the UK business," he said.

Álvarez-Pallete told Mobile Today that the UK business provided strategic benefits for the wider company, adding: "It's in a very attractive market because it is very competitive, and we learn a lot."

Rumours had pointed towards Telefónica floating its UK O2 business as it had with Telefónica Germany.

However, Álvarez-Pallete said the UK business contrasted with Germany because he felt the latter was not the value of the sum of its parts, according to Mobile Today.

For more:
- see this Dow Jones Newswire article
- see this Mobile Today article

Related Articles:
Spain's Telefonica raises €1.5B with 10-year bond
Telefónica eyes €6B from Latin America IPO
Telefónica, Vodafone suffer most as 240K Spaniards ditch phones
Spanish operators to suffer 75% cuts to termination rates
Telefónica Spain struggles with churn as market share drops