Telefonica Raises 2010, 2012 Dividend, Lowers Outlook
October 09 2009 - 2:49AM
Dow Jones News
Telefonica SA (TEF) Friday pledged to increase shareholder
returns with a EUR1.40 dividend next year, but revised downwards
its guidance until 2012 amid falling revenue in mature European
markets.
In a filing to the Spanish market regulator ahead of its
Investors Day Friday, the Madrid-based company said its revenue
compound annual growth rate, or CAGR, until 2012 would increase 1%
to 4%. In its last Investor Day two years ago Telefonica had set
out a revenue CAGR of between 5% to 8% for the period 2006 to
2010.
Telefonica also lowered its earnings per share target to EUR2.10
for 2010, down from previous guidance of EUR2.304.
But the company also said it would pay a EUR1.40 dividend for
2010, up 21.7% from EUR1.15 last time, and that its 2012 dividend
would be at least EUR1.75 a share.
Telefonica has relied increasingly on solid revenue growth in
its Latin American markets as an economic downturn hits its mature
markets in Europe, especially in Spain.
Telefonica is Spain's largest telecommunications company by
market value and customers.
Company Web site: www.telefonica.com
-By Jason Sinclair, Dow Jones Newswires, 34 913958127,
jason.sinclair@dowjones.com