Telefónica relies its strategy on the dividend: at least 0.30 euros until 2026, despite the Saudi entry

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Telefónica This Wednesday, it presented its long-awaited new strategic plan with some guidelines, among which stands out the guarantee that the dividend will be at least 0.30 euros until 2026, which gives a horizon of remuneration to the shareholder, despite the uncertainty surrounding the group’s shareholding with the Saudi irruption and the Government’s maneuvers.

The document sent to the National Securities Market Commission (CNMV) contains the company’s economic forecasts for the next three years that They must grow an annual average of 1% in revenue and 2% in profitability (Ebitda)while increasing cash flow generation by 10%, reaching 3,000 million euros in 2026.

The plan, named GPS (for the initials of Growth, Profitability and Sustainability in English) affects cost efficiency and investment reduction as ways of efficiency to increase the profitability of the company, at the same time that the debt is reducedwhich the group expects to reach ratios between 2.2 and 2.5 times the group’s adjusted Ebitda

Precisely, The reconciliation of current dividend levels and debt reduction is one of the main focuses of investors for today. Telefónica has decided to continue betting on remuneration and trust in cost efficiency to guarantee sufficient cash to carry out these two functions.

In the absence of the presentation that will be led by the president of the group, José María Álvarez Palleteduring midday the route sheet sent to the supervisor includes a continuous plan in which Telefónica Tech and the business-oriented business (B2B) will maintain the leading role in income growthwith projections of an annual increase in billing of 14% and 5%, respectively, compared to a growth of 1.5% in the residential segment.

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