Telefónica and Liberty have signed an agreement to integrate their subsidiaries in the United Kingdom: O2 and Virgin Media. In this way, a telecommunications giant will be created in this market, considered strategic for the Spanish multinational. The joint venture will be 50% owned by each company through an operation valued at 35.8 billion euros, Telefónica confirmed this Thursday to the National Securities Market Commission (CNMV).
In this way, the fixed and mobile service operator “leader” of the market in the British country is created, announces the multinational in a statement in which it assures that the merger will generate “substantial synergies” valued at 6.2 billion pounds (about 7.1 billion) euros), excluding integration costs.
At the time they announced the merger, Telefónica informed the CNMV that it obtained a net profit of 406 million euros in the first quarter of the year, which is 56.2% less than the 906 million that it earned in the same period of 2019 , due to the incidence of the coronavirus crisis.
The company announces that it is abandoning its financial targets set for this year due to the current situation of uncertainty, but confirms the dividend distribution to shareholders of 0.40 euros per share.
Its income stood at 11,366 million until March, 5.6% less than a year ago. Also gross profit before amortizations (Oibda) stood at 3,760 million euros, 11.8% less in reported terms and 1.7% less in organic.