In a recent series of strategic moves, Telefónica increased its stake in Telefónica Germany to 93.1%, up from 71.81%, after a successful public tender offer. Shareholders, representing only 7.86% of Telefónica Germany’s share capital, tendered their shares during the acceptance period, reflecting a shared enthusiasm with Telefónica to maintain exposure to the German mobile market.
The acquisition, totaling €1.48 billion in cash, highlights the confidence both Telefónica and its German subsidiary have in the stability and attractiveness of the German telecom market, as stated in Telefónica’s commitment to the region.
Simultaneously, Telefónica unveiled a new group strategy, the GPS plan, aiming to increase annual free cash flow to €3 billion by 2026 and targeting revenue and EBITDA improvements of 1% and 2%, respectively, over the next three years. This aligns with Telefónica’s dedication to debt reduction, financial obligations, and dividend payments. Telefónica Germany’s consistent dividend payouts, €0.18 per share for the last three years, totaling €535 million, may contribute to shareholders’ hesitance to part with their shares.
On the domestic front, Telefónica secured broadcast rights for Spain’s La Liga football competition for three seasons beginning in January 2024, paying a total of €1.29 billion. This significant investment follows regulatory challenges, with the Spanish competition regulator initially blocking a longer-term deal, citing concerns related to Telefónica’s acquisition of pay TV provider Digital+. However, rule expirations enabled Telefónica to secure a fresh agreement, ensuring continued access to football content for its Movistar Plus+ TV customers.
