With his recently published photograph on the executive committee of Telefónica –already updated on the multinational’s website– Marc Murtra faces the presidency of the group with the stock market challenge among the first emergencies of the listed company. The 3.97 euros at last Friday’s closing mark the line by which the new president’s management will presumably be valued in the future. For now, Shareholders dream of reaching the 5 euros that the telecom company briefly reached in June 2022. Since then, the closest it has been to that level was 4.34 euros last fall. Telefónica confirms the resignation of Álvarez-Pallete and the proposed replacement of Marc Murtra.
Aside from behavior on the floor, Murtra will have to align the new and influential shareholders (especially Sepi and Saudi Telecom, STC) with the rest of the capitalwith the incorporation of an STC representative on the board practically imminent.
Along with all of the above, Murtra finds itself with a competitive map in Spain that has changed with the merger of Orange Spain with MásMovil, now leaders by customer. Therefore, in the domestic market, the obligation of the former incumbent consists of recover the Spanish podium as soon as possible by number of lines, as well as defend the leadership in revenue. The recent portability battle has been smiling on the Spanish subsidiary lately, since last year it recorded the best year in its entire history in the mobile business, with the record of almost 40,000 connections gained in the whole of 2023, compared to 59,000 losses in 2023. The technological challenge is not minor.
Murtra inherits fixed infrastructures that are the envy of Europe and the world, but now it is time to increase their commercial performance. Álvarez-Pallete’s tenacious efforts to provide networks with intelligence opens up a world of possibilities for future businesses, which will require the new president to advance in this area. This is how Álvarez-Pallete’s departure from the presidency of Telefónica took place on Friday.
Murtra will also immediately suffer from the peculiarities of an investment-intensive industry, generally deflationary and low on income, accustomed to giving more for almost the same thing and with relentless regulatory pressure.
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