Murtra accelerates sales while the continent bleeds 1.7 billion

Telefónica is running an accelerated output of Latin America under the command of Its new president, Marc Murtrawho has intensified the sale of assets in the region just two months after taking office.

The Spanish Telec He has commissioned JP Morgan and White & Case The divestment of its subsidiary in Mexico, while progressing in parallel the sales of its operations in Argentina and Colombia.

The money trail. Latin American subsidiar Group’s resultswhich closed 2024 with losses of 49 million euros after provisioning more than 2,000 million for the deterioration of assets in the region.

And now what? Murtra, considered close to the Spanish government (remember The entrance of the State into the operator through the SEPI), seeks to specify The sale from Colombia to Millicom (Tigo) for about 370 million euros After many months of negotiations.

At the same time, look for a buyer to The remains of your business in Mexico (He returned all his frequencies three years ago) and Evaluate options for other markets such as Uruguaywhere the competition has cornered him.

What has happened. Telefónica had already classified in 2019 all Latin American markets, except Brazil, as “non -priority” and grouped them under the Hispam subsidiary. At that time, Álvarez-Pallete tried to sell those assets as a unit, but the process failed.

Now, the plan has changed to disinversions country to country, accelerated since the arrival of Murtra, who considers them urgent.

The contrast. While Hispam bleeds, Brazil remains a strategic and profitable market for Telefónica, contributing one in four euros in sales and almost a third of the profitability of the entire group.

The growth of Brazil, where Telefónica invests more than in Spaincontrasts with the depreciation of currencies such as the Argentine and Chilean weight, as well as with the fierce competition suffered in markets such as Peru and Chile.

Yes, but. Latin American markets (without Brazil) barely represent 20% of income and 11% of the group’s profitability, with a negative trend that is aggravated by political instability, devaluations and regulatory conflicts.

Hispam’s billing fell 8.2%, while profitability collapsed 14.9%. The deterioration goes to forced marches and Murtra has already taken the scissors.

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