Telefónica and Liberty Global are developing a restructuring plan for their British subsidiary VMO2 to save €700 million. This decision aims to alleviate market concerns regarding the company's high debt.
Telefónica and Liberty Global, which own 50% of VMO2, are preparing a restructuring plan that could generate savings of £600 million (equivalent to €700 million). This measure arises in a context of market unease over the company's total debt, which amounts to £21.928 billion (approximately €25.550 billion), according to Expansion.com.
Among the actions considered are staff cuts, reductions in operating expenses, and a decrease in investment, estimated at around £2 billion annually. A cut of £200 million in dividends has even been discussed, although these measures have not yet been formalised.
The latest accounts from VMO2, corresponding to the first half of the year, reported losses of £341 million (around €400 million), with a 7.2% drop in revenue, which was set at £4.789 billion (approximately €5.611 billion).
The group faces the challenge of operating in a competitive environment in the UK, which is one of Telefónica's four key markets, alongside Spain, Germany, and Brazil. The company aims to create a financially sustainable network and expand fibre in this region.
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