Analyst Note| Denise Molina, CFA |
Narrow-moat Telefonica reported fourth-quarter results with both revenue and EBITDA above consensus expectations. Revenue was EUR 10.9 billion, down 12% on a reported basis due to currency headwinds from Latin America. EBITDA margin was 34.4%, 30 basis points down organically year over year. Free cash flow for the full year beat management's initial guidance of EUR 4 billion, reaching EUR 4.8 billion. We are maintaining our fair value estimate of EUR 8.7.