The impact of the economic crisis on the Spanish telecommunication sector: main challenges and opportunities. ENTER-NEREC. Javier Borrachero, CFA Madrid+34 91 789 8872 email@example.com. June 2009. The impact of the crisis on the sector. Resilient but not immune.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
The impact of the economic crisis on the Spanish telecommunication sector: main challenges and opportunities
Javier Borrachero, CFAMadrid+34 91 789 8872 firstname.lastname@example.org
Resilient but not immune
Technological waves have boosted telecom spend
Telecoms seek cash flow protection
European telecoms operators - Adjusted equity free cash flow* (€bn)
* Adj EqFCF for stocks covered, excluding non-recurring items and spectrum purchases, constant currency
Fibre investment might be the wild card
TEF: capex 2008 €8.4bn, 2009 <€7.5bn (excluding spectrum auctions). Close to 50% in Latam
Telecom Italia (domestic): 2008 €3.5bn (15.2% capex/sales), 2009 €3.3bn, 2010 €13.0-13.5% capex/sales.
FTE: 2008 12.8% capex/sales, guidance 2009 12%-13% but has indicated it may go below 12% if market deteriorates. FTTH budget already delayed
Investment needed in 2009-10F
Spectrum costs are a downside risk for the telecoms sector as these costs are not fully reflected in consensus and management estimates
See report Mobile spectrum auctions, published 16 Oct 2008