REG - Telefonica SA - Accounting classification of the operations in UK <Origin Href="QuoteRef">TEF.MC</Origin>

Telefonica SAAnnouncement

29/06/2016 14:35

RNS Number : 6817C
Telefonica SA
29 June 2016
RAMIRO SNCHEZ DE LERN GARCA-OVIES
General Secretary and
Secretary to the Board of Directors
TELEFNICA, S.A.
 
TELEFNICA, S.A. as provided in article228 of the Spanish Stock Market Act (Ley del Mercado de Valores), hereby reports the following
SIGNIFICANT EVENT
Following the Significant Event published on May 11, 2016 in relation to the European Commission decision to prohibit the sale of Telefnica's subsidiary in the UK (O2 UK) to Hutchison Whampoa Group, Telefnica informs that upon the publication of its 2016 first half results, Telefnica's operations in the UK will no longer be reported as discontinued operations within Telefnica Group and all its assets and liabilities will cease to be reported as "held for sale", and will be reclassified back into full consolidation within Telefnica Group financial statements, according to IFRS. The comparative results will be reported accordingly.
O2 UK is a leading company in the UK telecommunications market, leader in customer satisfaction and brand recognition, with very positive financial results showing y-o-y growth at OIBDA and OpCF level, and, at the same time, OIBDA margin expansion(1).
Telefnica continues to explore different strategic alternatives for O2 UK, to be implemented when market conditions are deemed appropriate.
Madrid, June 29, 2016
(1) According to O2 UK first quarter 2016 results published by Telefnica S.A. on April 29, 2016

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