Ladies and gentlemen, thank you for standing by and welcome to Telefonica us January December 2015 Results Conference Call. At this time, all participants are in a listen only mode. Later we will conduct a question and answer session. As a reminder, today's conference is being recorded. I would now like to turn the call over to Mr.
Pablo Egiron, Head of Investor Relations. Please go ahead, sir.
Good morning, and welcome to Telefonica's conference call to discuss January December 2015 results. I'm Pablo Yiran, Head of Investor And before proceeding, let me mention that financial information contained in this document related to 2015 has been prepared under International Financial Reporting Standards as adopted by the European Union. This information is now detailed. Presentation may contain announcements that constitute forward looking statements, which are not guarantees of future performance and involve risks and uncertainties and that third time results may differ materially from those in the forward looking statements as a result of various factors. We invite you to read the complete disclaimer included in the first page of the presentation, which you will find on our website.
We encourage you to review our publicly available disclosure documents filed with the relevant securities regulators. If you don't have a copy of the relevant press release and the slides, please contact Telefonica's Investor Relations team in Madrid by dialing the following telephone number, 3 4914-8287, double 0. Now let me turn the call over to our Chairman and CEO, Mr. Fessari Ata, who will be leading this conference call.
Thank you, Pablo. Good morning, ladies and gentlemen, and welcome to Telefonica's 2015 results conference call. With me today are Jose Maria Barre Paiete, Chief Operating Officer and Angel Bela, Chief Strategy And Financial Office sir. So during the question and answer session, you will have the opportunity to address to us any questions you may have. Before I start, let me briefly explain to you the agenda for this conference call.
First, I will do a on our vision of the crucial moment that we see team. Jose Maria will then give an overview of last year's key achievements and the main priorities for 20 18. And finally, Aker will go over 2015 results. We are lucky to work in an 3 that is dramatically changing the world. The utilization will change everything and social progress will it be as financials in even greater wealth creations.
We are leaving the deepest and most transforming technological revolution that has been experienced in by naming other generation in the history of humanity kind. And chances led by a difficult revolution in the next decade will lead to when unprecedented social development. We keep short of being able to imagine its impact. But we need to institutions, governments, enterprises, unions, policy makers, and citizens to realize the full potential of the digital world for the benefit of society. It is the opportunity to foster economic growth across the board.
Digitalization is already having a very positive impact on innovation, productivity and growth. Number show that the digital industry accounted for nearly 1 feet of the global growth in the last 2 decades. In recent reports estimate that the 10% increase in the utilization of the economy will increase GDP per capita growth rate by 40%. I'm convinced that these figures will be even higher. Are the transitional metrics to measure economic are not capturing the total benefits of the digital era.
The so called digital dividend that includes the broad development benefits from digital dilution. For make this a reality, political ambitions is needed to really take the lead in the digital economy. The digital single market in Europe is a very clear step in that right direction. Now it is time to by implementing policies linked to foster digitalization and big data adoption across all industries because they will transform all the productivity models. In.
4G is here and 5G is getting closer to porting transmission speed of to 50 or even 100 trains, those of region. We are talking about Espensio SP. Today, all of us are connected 24 hours a day, but the big change from digitalization are still to come. The Internet of Things is the next exciting phase. By 2020, it is estimated that there will be 1,000,000,000 of connected things Whirables car houses, stairways, tariffs, and any gadget of all kind will have sensors.
The growth in the number of connections will be Esponentials. This comes with an exponential growth in data traffic volumes. Which we are already seeing in our networks. All this also drives municipal growth in data from the information generated by us, business, consumer in each of our digital interactions. And this shows we are ahead of an era of exponential growth of the digital economy.
Thanks to big data, we are facing a new way for growth in our industry. Few sectors can have such a deep knowledge of their customers as that already available to telcos. We have an opportunity to build a different kind of data relationship with our customers. To give customers back control over their data. It is about building a new competitive advantage that will allow to rebalance clearly the value change of the digital ecosystem.
And we are determined to do so with a view of reverting value back to our customers through improving services and customer experience. Even then visibility control of the digital life. And we know how to do it. I repeat, we know how to do it. We guarantee customers data privacy and security and we have all the technological know how and it's not difficult at all to implement it.
In the connectivity wave, we have a successful capture growth around mobile data monetization and yet There remains a significant additional potentiate that we intend to capture. Through increased penetration of ATN prepaid data data roaming or elimination of 0 rated tires to mention a few of the drivers we continue to work on. Beyond this additional prospect in mobile, we have as well a very important sizable potential around fixed data monetization. A few years ago, we started the mobile and the transition from now it makes perfect sense to consider a similar journey for fixed data. In different countries already implementing it and we are working with this approach in some of operating business such Argentina, Germany and Chile.
Moreover, in the context of the new relationship, we intend to build with our customers giving them back control over their data in their digital life, they will be empowered to make a more sensible use of the data and we expect this to deal an increased loyalty and reductions. Under this scenario, we could double our revenue growth rate in the near future. This further growth opportunity is not being considered by the markets today, but it is clearly there and we are going to save 8. In the last years, we have laid the foundations to capture the growth potential in our industry. With significant transformation of the company since 2012 as outlined in slide number 7.
We have made significant headway accelerating revenues and their mix, primarily thanks to data monetization This along with the efficient initiatives and reinforced asset portfolio has led to a stronger performance in our key markets namely Spain, Germany and Brazil. We also achieved a record debt reduction while providing outstanding shareholders return. In 2016, we will accelerate growth, leveraging a solid set of differential assets and data monetization while maximizing synergies and efficiencies from the integration and superior cases. We will boost our big data and innovation capabilities to provide support to our network and customer insights. We will maintain financial flexibility, focusing on continued portfolio optimization and improve return on capital employed.
And we reiterate our commitment to a full cash dividend. I repeat, we reiterate commitment to its full cash season only to get to the only to get the move with the site on the closing of the sale of Fatum. Through 2015 was very positive and for 2016, we have even better expects and we capture the digital economy opportunities. On slide number 8, I would like to get over the key indicators of our progress. Consistent improvement in revenues evolution, accelerating growth by 5 percentage points in the last 3 years, underpinned by the average revenue per asset, which increased for the 2nd consecutive year.
Increasing year on year trends in EBITDA to 3.6 year on year organically in 2015, used 40 basis points lower than revenue growth. Which explains the flat margin versus the Russian registered last year. Operating cash flow returned to growth for the first time in recent years, despite the peak in the CapEx to say that is allowing us to support our commercial activity in UltraFormation. Underlying earnings per share and I repeat and the line earnings per se. So the real earnings per se delivered solid progress.
Expanding to in free cash flow the spectrum per sale reached in 2015. So the key highlights of 2015 is that we returned it to organic growth simultaneously in main financial metrics. Revenue, OIBDA and operating cash flow. Moreover, OIBDA margin has been stabilized. Going down the profit and loss or net income earnings per se grew very solidly in underlying terms.
NIM financial debt increased to 1,000,000,000, primarily due to financial investment carried out to improve the strategic position despite generating a robust free cash flow during the year. Let me state that we have implemented different restructuring measures to improve efficiency and productivity over the coming years. Which affect our Q4 reported numbers, and nothing will explain in detail later. We have delivered on the guidance that in revenues, OIBDA, margin and CapEx to sales we have beaten our commitments. And we keep working towards our leverage target.
As we are honoring our dividend policy, the dividend has been a combination scripting cash to be paid in quarter 2016. And we have also executed the share buyback program We announced it with a 1.5% capital cancellation last June. Let me now highlight the guidance for this year, which is about 2 years ambitions plan given in February 2015. In 2016, we are targeting for revenue growth higher than 4%. Stabilizing EBITDA margin and CapEx to sales ratio around the level of 17%.
We will continue to deleverage with the goal of being below 2.35 times. And let me stress that we confirm the dividend per for 20 16 of per share, which will be forecast, as I said before, and we might take a part of a script to get to the sale of 2000 or 2 U. K. But basically it will be and we will also propose to the general meeting the cancellation of treasury shares equal to 0.1.5 of the share capital. And now Jose Maria and Angel will give you more details about our recent performance.
Thank you, Cesar. 2015 has been a year in which we have consolidated our position as a profitable and growing company. 1st, strong commercial momentum and investments to build an outstanding connectivity. Namely fiber LTE and pay TV are flowing directly to revenues, which ramped up versus last year. 2nd, we are enhancing our competitive position in key markets via in market consolidation and extracting clear benefits in terms of synergies, synergies, which will be incremental in the coming years.
Simplification initiatives and efficiencies are also worth mentioning as they are one of the drivers behind the improved profitability and business model transformation. 3rd, strong free cash flow generation enabled for attractive shareholder returns and investments. Our balance sheet has recovered its robustness when including the proposed O2 UK sale, and we have reinforced our credit quality through diversified financing. At the same time, we continue to advance in our portfolio optimization In 2015, we have seen sustained top line and OIBDA organic growth as seen on slide 14. On the revenue side, this year's 4% organic growth was built on several key drivers, namely The mobile data expansion and the growth of Hispam, 16.9% and 10.1% year on year, respectively.
Data and connectivity continue to transform our business as reflected in the accelerated change in our revenue mix from traditional services towards connectivity and new services. Furthermore, OIBDA posted a robust result up 3.6 percent year on year and led to a positive operating leverage which flow to margin. Which is now a stable year on year in organic terms. Our decision to invest in attracting and retaining higher value customer Spain off. 1st,
let's take a look
at the graph of the top of slide 15. Which reflects robust organic growth across all high value services. Fiber is growing 30% year on year. Pay TV is gaining momentum an LTE high skyrocketed with 3 times more customers year on year reported to name a few examples. On the second half of the slide, you can see clearly how the growth in those services has boosted average revenue per access.
And finally, Our quality services and knowledge of our customers are also making us much more a much more desirable provider and as such, churn reduction has continued across our markets. Slide 16 shows some insights on how mobile data monetization and connectivity is boosting growth. LTE penetration reached 12% at the end of 2015 more than tripling versus 2014, leading to strong usage, more than 60% higher than 3g and double digit ARPU athlete versus 3 d. Additionally, prepaid data penetration is also fostering data traffic mix with ispam penetration up 11 percentage points year on year to 29%. The boosting data traffic, 40% higher versus the last quarter of Q4 of 2014 is driving the acceleration in non SMS mobile data revenues to 28 percent organic year on year.
I would like to highlight that 1 third of actual customers are using more data than they initially subscribe and more than 40% of them are subscribing additional data snacks. Going forward, we also expect further upside as data test drives launch show very positive results in terms of data consumption dynamics. And roaming propositions drive elasticity and improve customer experience. Overall, data monetization is a reality. But we are just in We have made significant steps in driving value for the company this year, with a strong revenue organic growth of 23.6 percent in 2015.
Furthermore, our vision to become a video company is now our reality. We have significantly increased our video customer base and our revenues. And we will continue to invest in quality scaling 2016 via differential content and technology. Our other digital pillars have also posted strong results, pushing us further towards creating true innovation for ourselves and our customers. And we are not doing this alone.
We have 4 important, important, strategic alliance worldwide to ensure we can deliver the best in the latest technology. On slide 18, we show how TGR is creating value for the group. Our focus is the deployment of our future proof Ultra broadband networks, which resulted in 31,000,000 premises passed with fiber in 2015 and LTE coverage of 49%. Network modernization towards an all IP network is a key pillar and we continue innovating with initiatives such as starting to shut down legacy corporate central offices in Spain voice over LTE launch in Germany, LTE Advanced with 2 carriers for research and development 5G lab. Also, we continued on transforming our operations on the launch of 4 global centers is delivered positive results in terms of end to end diagnosis and the new home gateway unit, which can deliver speeds of up to 300 megabits per second.
Regarding IT, full stacks projects are being deployed in 15 countries. Digitalization is boosting big data and real time decisions. And we are maintaining record IT service delivery. In parallel, on simplification, we keep on reducing applications and physical servers, closing data centers and increasing overview of our new global infrastructure company tells you. As Angel mentioned in our Q3 call, we have been studying how to best optimize our portfolio of infrastructure assets to drive better return on capital employed.
Telches. It's a combination of certain infrastructure assets of the group, including part of our towers and our submarine fiber cable. And in the future, we envisage more telephonic owned assets being incorporated into sales use. On the tower side, It would initially include close to 15,000 telecommunication towers. The cable business will of our capacity and IP businesses through an international Tier 1 network, with the largest and most reliable submarine fiber optic cable in Latin America.
The new global company will enable a more specialized and focused management of Telefonica's infrastructure with the aim of increasing the services provided to other operators and allowing the new company to participate more actively in the growth opportunities that exist in the industry, including the possibility of acquiring 3rd party assets. CapEx intensity is paying off and has been the driver of our competitive advantage. By transforming our network and systems as seen on slide 20. We have also invested significantly in spectrum in 2015, with safeguards future growth. And we expect these investments to be lower in the coming years.
Operating cash flow has returned to growth in full year 2015. As Stessa mentioned before, thanks to the positive trends built on our superior networks, which have enabled us to become a more robust company and the improved ADA trends combined with efficiencies, both at OpEx And CapEx levels. Now Aja will explain in more detail the 2015 results.
Thank you, Jose Maria. Moving to Slide 22, let me summarize our key financials. Reported year on year evolution is significantly affected by A provision for restructuring costs, impacting OIBDA by 1,000,000,000 mainly affecting Spain with the announced voluntary employment suspension plan and second, multiyear commitments relating to Telefonica's Charitable Foundation. It is important to note that these nonrecurrent items have no impact on free cash flow generation in fiscal year 2015 and are expected to enhance Revenues increased 4% in 2015 to a total of 1,000,000,000, while OIBDA increased 3.6% improving its year on year growth rate versus last year by 3.4 percentage points and margin remained stable. More significantly, operating cash flow returned to organic growth in the year.
Finally, net income reached 1,000,000,000 9.7% versus 2014. Please turn to slide number 23 to see in more detail the impacts affect in Q4. Nonrecurrent effects reduced Q4 EBITDA and net income by 3.4 and billion, respectively. With the provision for restructuring costs accounting for approximately 90% in both cases. FX is dragging the year on year OIBDA variation by 11.8 percentage points.
With the depreciation of LatAm currencies since last August becoming more tangible as the year progressed. The contribution of perimeter changes to OIBDA is 2.6 percentage points lower than last quarter As the consolidation of ePlus is no longer affecting year on year change. Turning to slide 24. In 2015, free cash flow remained relatively immune to nonrecurring impacts and also absorbed most of the negative FX impact through lower CapEx, interest, taxes and minorities. As a result, free cash flow generated 1,000,000 or 1000000 excluding spectrum payments, up 1.6% versus 2014.
I would like to highlight the outstanding performance of free cash flow which resulted, sorry, resulted in a generation of 1,000,000 based on improvements in most free cash flow metrics. Free cash flow per share reached in January to December. Supporting an attractive shareholder remuneration with a 66% cash dividend payout. Moving to slide 25, we start to show the performance of individual operations. In Spain, strong commercial traction continued in the quarter with an excellent trading balance, higher loyalty and more gross adds.
As a result, net adds improved year on year in 2015 in every access category. With remarkable growth achieved in the highest value plus 25% and pay TV net adds reached $1,800,000, +47 percent, partly due to the incorporation of digital In addition, the leading conversion offer Fusion Plus and the TV premium promotion proved to be powerful tools to drive customer upgrades towards higher end packages with price premium. As such, 26% of the fixed broadband base enjoyed ultra broadband speeds. And 53% of paid TV customers had contracted TV add ons. This better mix along with a tariff update applied in the 2nd quarter resulted in a 7% year on year increase of Fusion ARPU.
To and once the promo wins in Q1 'sixteen, growth will be even more visible. In 2016, we continue progressing in our more for more strategy, repositioning again tariffs while adding more value namely TV contents and data tenable improvement in top line growth for Telefonica Espana, excluding DTS, growing for a second consecutive quarter to 0.8% year on year. After the incremental revenue flow in Q1 'sixteen versus Q4 'fifteen. Moreover, pay TV penetration is still in the 30%. So there are encouraging dynamic to make us believe that the positive trend It must be seen As such, organic OIBDA margin in 2015 stood at 42% with a limited year on year decline of 1 percentage point despite the strong commercial activity and the impact of the TV discounted prices.
Importantly, I would like to customer is declining 17% year on year in Q4, due to a larger part of costs recovered through the TV wholesale offer and strong growth the pay TV base. And second, a new restructuring plan has been launched and in the near future, will drive sustainable efficiency gains. Let me explain a more detailed lease plan in the next slide. The new social agreement signed with the unions includes a new plan for voluntary employment suspension for employees aged fifty three years old or more that have worked for more than 15 years in the company. As benefits, we will save just indirect personal expenses, 1,000,000 per year from 2017.
And indirect cost savings should increase this figure. In cash terms, the plan is cash flow positive From year 1, as we expect more than 75 percent of employees signing to the plan to leave the company in 2016 and the rest in 2017. Overall, the company's transformation is accelerated to improve profitability in the coming year. Germany successfully maintained market momentum as shown in slide 28. We recorded solid contract net adds with churn improving 0.2 percentage points year on year in a rational and dynamic market.
As a result, our LTE base increased 13% in September to close to $8,000,000. Leverage on a 75% LTE coverage the end of December. On the fixed side, let me remark the continued positive trend of VDSL. Top line accelerated its year on year growth in the 4th quarter to 2% underpinned by strong handset sales. Mobile service revenues remained broadly flat in the year, with an increased share of the partner segment and aligned with full year outlook.
Finally, let me highlight the solid data monetization results with 40% of our O2 blue gross adds opting for a tariff with more than 1 gigabyte gigabit. On slide number 29, We highlight the significant synergies captured in 2015, explaining more than 50% of quarterly OIBDA growth, driven by successful integration progress, including milestones such as execution of 50% of the liver program target 80% of expected CHOPS reduction and consolidation of 30% of targeted in city facilities. In addition, we have 3g National roaming available, offering our customers a better data experience. All this, Together with our subsidy approach focused on retention led to an exceptional 35.5 percent OIBDA growth in the 4th quarter in organic terms and to 19.9% year on year increase in 2015. As a result, organic OIBDA margin ex non recurrence the full year increase close to 4 percentage points to 23%.
Finally, I would like to point that operating cash flow more than doubled versus 2014, totaling 1000000. And with a positive impact of 1,000,000 in year savings from synergy execution. Please turn now to slide 30 to review our strong commercial performance in Brazil. In the mobile business, our focus strategy on value is bearing fruit. We have captured half of new contract customers in 2015, allowing ARPU to maintain a positive year on year trend despite regulation and the macro environment.
Moreover in the fixed business, Our successful journey towards becoming a fiber and video company is reflected in our growing market share of food and broadband and pay TV services, with a significant positive impact on ARPU trends. As a result, we have 97,000,000 customers in a market of more than 2 million people. In slide 31, we detailed the robust revenue trends in Telefonica Brazil clearly outperforming peers. The fixed business once again consolidated its positive and growing contribution this quarter. And the mobile business strengthened its growth profile with mobile data already representing almost 50% of mobile service revenue and growing by 38% year on year.
Let me remark that in 2015 we have gained 5 percentage points of revenue market share in costs remained under control, growing well below inflation to drive an OIBDA increase more than 7% year on year in Q4 with synergies extracted so far fully aligned with our best case scenario. To review our progress in Espana America, please turn to Slide 32. Commercial performance in Q4 consolidates the increasing adoption of value services in the fixed and mobile businesses. With contract net additions tripling year on year to reach their best quarterly figure on record. This outstanding performance is the main lever backing the solid top line and OIBDA growth throughout the year, with revenue in Q4 growing by more than 8% year on year and OIBDA by 4% despite the acceleration of commercial expenses, mainly from the second half of the Slide 33 shows how commercial momentum is driving growth.
In Mexico, our market positioning is gradually strengthening. We posted record high quarterly net adds, reached more than 26,000,000 accesses after adding more than 3,000,000 new customers throughout 2015. On top of that, LTE is booming underpinned by the accelerated network deployment already reaching 45,000,000 POPs covered at the end of 2015. As such, Full year revenue in OIBDA are growing year on year almost 8% 39%, respectively, Whilst year on year deceleration in Q4 is driven by the strong tariff promotions and the higher commercial costs amid intense competition. All in all, let me also highlight operating cash flow more than doubling year on year in Mexico to reach 1,000,000 in 2015.
In other countries such as Colombia, Peru and Chile, commercial traction remains very solid with robust momentum driving outstanding high value net adds. In Argentina, Revenue and OIBDA year on year trends in the last quarter are mainly affected by the different timelines of tariff updates But full year growth remains strong with an impressive uptake of LTE devices in the second half of the year. On slide 34, Telefonica UK added 700,000 customers in 2015. With the last quarter being the strongest in the year underpinned by market leading customer loyalty and successful commercial propositions. The rapid rollout of LTE is translated into an outdoor coverage of 80% at December, which led to an increase of 5 of 5 percentage points quarter on quarter in penetration to 35%.
Also, I would like to highlight that according to Ofcom, O2 had the most satisfied customers in the mobile market for the 7th year in a row. As a result, Mobile service revenue grew for the 6th quarter in a row, excluding auto refresh, and was up 3.4% versus 2014. Thanks to ongoing customer appetite for high volutaries. Total revenue increased 4.6%, but the slowdown in high end handset sales in the last three months led to revenue growth and deceleration. OIBDA ex nonrecurrence grew by more than 2% in the year and maintained similar growth trend versus Q3 on the back of revenue flow through, and continued cost control.
With this OIBDA margin grew 0.6 percentage points and reached 24.6 percent in 2015. Let me now move Net debt at the end of the year stood at 1,000,000,000 on track to achieve our leverage target after the sale of O2 UK. Major drivers for the debt evolution have been 1,000,000,000 free cash flow generation or 1,000,000,000 pre spectrum payments. 1,000,000,000 dedicated mainly to dividends and share buybacks. And 1,000,000,000 financial investments net of equity funding, mainly for the acquisition of GBT and DTS.
For 2016 and beyond, our leverage will reflect the cash flow generation from improved operational performance, the sale of O2 UK and other corporate actions. Cost has moved down by 57 basis points in rate debt in euros. The reduction in variable rate and lower refinancing costs leading to 51 basis point savings. For 2016, we expect effective interest cost to be below 5%, continuing the declining trend. In 2015, we completed another year of well balanced and robust financing activity for 1000000000.
26% was raised in the equity market on top of the strong support received by the banking community and access to alternative funding sources by geography and product. Our liquidity cushion has been increased to EUR 19,000,000,000 to cover maturities beyond 2016. Should we factor decision would be around 1,000,000,000, with a very comfortable coverage of upcoming maturities. So now I hand back to Cesar for the concluding remarks.
Thank you, Angel. To finish please move to slide 38 for our final conclusions. We posted a very solid set of results in 2019 better positioning us for further growth. We impacted network differentiation translating into a strong commercial momentum in 5G and pay TV. We successfully integrated the companies incorporating into portfolios in a record time In 2016, we will maintain revenue momentum with significant data monetization opportunities ahead of us.
Will be accelerating the formation, synergies and deprecations, while engagement will be and we remain committed to enhance financial flexibility and to our attractive shareholders remuneration. And finally, let me remark that when you see the wider picture, we are very excited about the brilliant future for the sector. Thank you very much, and now we are ready to take your questions. Questions.
You. And if possible, we recommend you not to use your cell or hands free phone. There will be a short silence Our first question comes from the line of Georgios Yiraconou from Please go ahead.
Good morning and thank you for taking the questions. My first question is around the dividend policy. I know it's hard to comment on hypothetical scenarios, but given there is some uncertainty around the sale of O2 can you give us some color on your thoughts? Should that event arise? I mean, until last year, you are distributing around $0.40 of cash dividend, do you see or expect that you could at least sustain that level of dividend in cash even in the event of the sale being blocked?
And my second question is around the real estate restructuring. Can you give us an idea of what you expect to do with the proceeds if it's proceeds in the end, is it for paying down debt or maybe using it to finance strategic options in LatAm? And if I could ask there's still 47,000 towers left, will be hard to monetize those towers because of that geographic mix or would you expect to have a 2nd phase of real estate disposals in the coming years?
This is Cesar. Thank you for the question. In regards to this, then I say various times that the $0.75 of dividend is fully assured. For the next I don't know, 5, 10 years. So, and we I have said that maybe, maybe, but I would say in the probabilities are, say, 2% at 5% that if We don't sell to where we'll have a part of the scrip dividends.
That means 40% in cash and 35% in scrip dividend. But let me remain again The probabilities are practically nothing and which is totally, totally assured is the payment of the $0.75 per euro in dividends for the next, I don't know, 5, 10 years. So this is going to be like that. And
the second question, you assume that you're talking about TELSIUS, the company we're launching for positive infrastructure. The company will start with an initial contribution of mobile towers, from the telephonic portfolio of mobile towers. Around 15000 towers and the submarine cable systems that we have around Latin America. The number of towers that we are contributing initially are not, of course, the whole portfolio of towers of telephone that would probably, as Jose Maria was saying, in the presentation, be contributed or drop down into the infrastructure bakel later on as well as potentially consolidating towers from other or infrastructures, from other third parties. With this, this vehicle will have clear levers of growth.
1 would be the classical of colocation in towers. We continue to build towers across our footprint that would be a second level of growth. We will also be able to consolidate infrastructure from third parties and 4th lever would be the continued contribution. Obviously, at arm's length, of Telefonica owned infrastructure into the vehicle. And with respect to the proceeds or the use of funds or financially what we're aiming at with this transaction, we will be able to strengthen our balance sheet and part of that can be used for the reduction.
Also, we plan to go release funds in order to invest in other areas of growth that are available that are in front of us. And third, and clearly, we are trying to optimize the return on the capital employed that we have in this type of infrastructure.
Thank you, Julius. Next question please.
Our next question comes from the line of Matthew Robilliard from Barclays. Please go ahead.
Good morning. Thank you for taking the questions. First, if I can come back, to the question of the UK business, I understand think the chances of a sell going through is very high, but still imagining for a second that it doesn't happen Can you share with us what you think, the reaction of the rating agencies would be? Do you think that would put the rating or the outlook at risk? Or are you very confident that that wouldn't be threatened?
And the second question had to do with Espano America, excluding Venezuela and Argentina, still some good growth but there are areas of slowdown in the mobile business. And I was wondering, what was the outlook for 'sixteen? Understand the slowdown is linked to more competition, but is it also the macro hitting consumer spending?
And with regards to an asset with the Sprint, more than me, in response to that code, we are very, very confident that the transaction will be approved. We see what is the reaction of the European Union. The European Union is very, very positive. The European Union is fully aware of the need to the utilize euro And this means that the important thing is to digitalize all the countries And that means that this thing about 3, 4 players is becoming irrelevant. And that's the fact and all the conversation we had in the mobile world congress, this week are in that in that direction.
In regards to Latin America, we're using our results. You saw the results of Brazil and you saw the results of the other countries. We are very happy to be in a region that has 350,000,000 people a richer on the hazard rate of unemployment of 6%, a richer that has a tremendous growth potential reaching that all the government lands in Latin America from Rio Grande to the Patagonia think that they need to be revitalized and they are going to support us and the rest through the correct regulation to the federalize because they need that. And our numbers show clearly. And, let me again give you the figures that we received that, what people what macro investor think has nothing to do with the reality.
The region is going to grow and it's totally undervalued. This is clear my opinion, total tender value. And we are very happy of the position to have in Latin America and is going to grow a lot especially in our sector. They are going to get tremendous growth in our sector in Latin America. And one thing you should not forget, which is never is that when we talk about the utilization, We only talk about consumers and we don't talk about business.
There are millions of business in the footprint of Telefonica that need to be digitalized in the next 2 years. Who is going to have to utilize this business Telefonica and what you're going to mean a tremendous increase in data traffic and monetization. And it is very clear that the only ones that are going to do that, it is us And I'm going to be very frank to you, oddities are not going to monetize that because they don't have the capabilities. Connection, the network or anything to do it and they look to us and this is a tremendous potential which is not reflected in the expertise of growth of our sector and especially in Telefonica. Angel, do you want to?
Let me give some additional color on the U. K. And complete a little bit the answer regarding deteriorating conservative. So, what are the reason that make us feel confident about that this transaction will be cleared by the European Commission. First, we are convinced that the proposed transaction will have a positive impact on effective competition in the UK market.
In particular, with regard to price competition, network quality and consumer's choice. 2nd, the preliminary competition concerns that have been read by the commission are not materially different and even in some cases like the pricing are less concerns than previous merger cases, which by the way, all of them have been cleared in the past. The merger the merged entity spectrum holdings will be less than both those held by either Vodafone or by BTNE. So there is not a sufficient spectrum concentration post merger that can give raise to competition concerns. The combined market shares, in this case, are not materially higher than those on similar mergers, such Ireland and Germany.
And we believe that Hachisone publicly has stated some promises and very clear commitments with respect to this transaction. The promise number 1 as per the letters sent by Mr. FOC openly through the Feet was not to increase. You need prices, promise number 2, what, regarding commitments of higher investment than the 2 individual entities are doing today. Promise number 3, Regarding opening network and fractional shareownership to other companies, we think that these and other potential remedies to be discussed between Hutchison and the commission are demonstrating first the commitment of Hutchison with the execution of the transaction.
And second, an understanding of how to address The commission concerns that they have to insist in some areas are less, are lower concerns than the ones that had been expressed in previous transaction specifically on the pricing. Well, we think we are confident that the transaction will go ahead, but what if not, already meeting conversations with ratings agencies. We have presented confidentially to them what could be alternative plans for our UK asset and we have presented to them alternative plans or complimentary plans, sorry, for other assets that we have in our perimeter And ratings agencies know that we would have plans in place to execute. It would take some time, but we think we would be given credit and time given our past historic execution of what we have been sharing with them.
Very much.
Thank you, Matthew. Next question, please.
Our next question comes from the line of Jonathan Royal Bank of Canada. Please go ahead.
Hi there. Thank you for taking the question. It was really 2. Could you My understanding is the CNMC has put out some new fiber regulation in the last days, if you could give us your thoughts on what implications? And then secondly, in Latin America, I think you've mentioned that the local assets are undervalued.
Do you think and I think historically you've been I think you've talked about assets like Sky perhaps other assets in Colombia, Mexico. Do you think the need for convergence? Do you think we see as a wave of consolidation perhaps in Latin America or perhaps more investment in fixed fiber or fixed cable from Telefonica?
Thanks for your question. I will take the one regarding the regulation in Spain. Well, on the new regulatory framework that was issued yesterday by the CNNC. First, let me say that we don't get to understand why somebody need to regulate something that has been performing well. Spain has become the leader Europe and ultra broadband has become a ultra broadband powerhouse in the middle of the crisis and it has become again the leader in terms of absolute connections of fiber.
Having said that, it is not just Telefonica who has been driving this effort. Our competitors in Spain has also been deploying ultra broadband networks if I'm not wrong, Orange has more fiber in Spain than in France. We followed that into consideration. The CMC ruling of yesterday needs to be completed because some of the decisions are still pending namely on the prices of the indirect access, but basically has some positive. First, geographical segmentation, they acknowledge that there are significant parts of the spending, which competition already exists, having more than or at least 3 ultra broadband networks we think we don't get to understand why this has been limited to the coverage that was established in mid last year.
And why not at the end of this year or approach, but that's positive. And second positive thing is that it is for the indirect access, it is, it is not cost oriented. It is retail minus and based on replicability. But in our opinion, it will significantly disintervised investment because first without knowing what are going to be the prices of the indirect access we would force us to focus on the already defined as competition zones. And I guess that our competitors are not going to get into further investments until they know when and how those zones, our prices are going to be clear.
So for us, still some unknowns that need to be cleared like the prices of the wholesale bitstream access or like indirect virtual unbunding of the local access And as far as we don't know those prices, it is hard for us to say what are going to be the total implications. So too soon to say, we will focus on our investment in the competition zones and we we will expand in some of the areas, but we will emphasize connections to what's more home passed.
Regarding the second question, it has been an ease, a critic element in our strategy to manage our portfolio in a way that we focus in certain geographies and we try to be stronger in those geographies beyond market consolidation. We have been doing this consistent in the last few years. And this in market consolidation sometimes have taken the form of mobile to mobile, sometimes have taken the form of convergence consolidations. So, you should expect us to be analyzing any such type of opportunities that could arise in our portfolio. Consistently or regularly.
With respect to Latin American assets that you were pointing at, We think that the region is suffering. The valuation of assets in the region are being suffering from the cyclicality that we have seen, and we have lived through this many times or several times in the past. We believe that some cases, valuation cases are very compelling and because concerns are in the price, but the upsides are not. Having said this, Having said this, we analyze cases very rationally. Taking into account what are the potential benefits for our shareholders, what are the potential synergies, what's the right valuation and when is the right time to do any move.
So you should expect us to analyze in market conservation opportunities you should expect us to be extremely rational before moving on those.
Our next question comes from the line of Andrew Lee, Goldman Sachs.
Just one follow-up because my other question had been asked, but on differentiation, which you're making a big point on in the presentation, your fixed network differentiation is clear. But my question will be on your confidence and the benefit of your video strategy. Your content costs appear to have diluted returns and margins in most European markets. What do you think is different about the Spanish market and your setup that means you can capture greater value from your investment?
Well, focusing on the Spanish situation, remember that we we are coming from a convergence process that we initiated back in 2011. With the creation of Lucio and the launching of Lucio and therefore pushing very hard for our convergence strategies here in Spain. A crucial part of that strategy was to deploy fiber, having a very attractive and quality based product coverage also in terms of LTE And therefore, in terms of trying or trying to be able to capture the 1st wave of data monetization, as Cesar was stating in the presentation, which is trying to capture ARPU athletes coming from speed and capacity. We have tried and we think that we are been somehow successful in doing that. The second way for data monetization, when you have in place this robust infrastructure fiber and LTE is about value added services.
And the main value added services is video. Video, it's the crucial component to drive up data consumption in this new world. And that's why we have been so focused on the content part of our strategy in Spain as well. We have tried to do that in a rational manner and have tried to do that combined with the remedies that were applied out of the acquisition of Digital Plus and that's why we have been trying to progressively put more value in our offer more value meaning both at the same time more gigabits or more megabits per second at the speed and at the same time more content. Thanks to that, we have been able recently to move ARPU upwards.
And thanks to that, we are capturing more value out of the value proposition we are making to our customers. Our customers in Spain, T value in us providing more content, more speed, more capacity and are willing to share more of their revenue with us. That's why we have been talking. And in terms of the impact on the margins, which I guess might be your follow-up question. We are trying to make sure that this is compatible with the margin stability And that's why you are seeing us absorbing the extra cost of those content.
We're doing extra efforts in other parts components of the cost structure of Telefonica Espana like this voluntary suspension plan and others that we have been putting in place The major outcome that we are coming out of all of that is a significant improvement in churn. We are not just improving ARPU, but also churn is improving. So content strategy needs to be put in the context of the overall strategy that we are following on in Spain and that is driving to revenue growth and hopefully OEDA stabilization in the coming quarters.
Thank you. That's understood. Can I just follow-up with one question on what do you what are the markets or what other companies do you look at that successfully executed a similar strategy? Is there a real one example that gives you confidence in this strategy? Thank you.
Well, the answer is that we are taking pieces from different components, what's happening in the U. S, what has also happening in other places, but mainly this is strong convergence. We are we think that it's uniquely happening here in Spain. I think that taking into consideration our starting point in terms of situation that we have in Spain back in 2010, 2011, the quality of our network. But again, you will not see in Europe single country in which there is a stronger network in terms of fiber to the home.
And as a result, you would not see in Europe at least and a strategy similar in terms of such an stronger convergence. And it has been mainly supply driven, not demand driven.
Thank you.
Thank you, Andrew. Next question please.
Our next question comes from the line of Mandeep Singh Redburn. Please go ahead.
Hi, thank you. I have two questions, please. The first one is on sort of the Spanish EBITDA organically in Q4, I think EBITDA declined over 6% year over year. The revenue growth is accelerating. Can you just sort of give us excluding the benefits of the headcount restructuring, what other drivers you see of actually getting EBITDA to be stable in Spain and potentially growing.
I'm not asking you for a prediction on timetable, just to understand some of the drivers Secondly, on Brazil, you reported a 7.3 percent EBITDA growth in Q4, but if you adjust for the workforce provision you took in the fourth quarter of 2014 EBITDA growth in Brazil was actually 0. Again, if I look at consensus numbers for 20 16, I think people are organically looking for about 10% EBITDA growth. So could you just explain to us some of the drivers of EBITDA growth in Brazil organically in 2016 given the exit run rate was 0%. Thank you.
Well, thanks for your questions. I mean, first focusing on Spain OIBDA trends in Spain. During the last quarter of 20 we have a full impact of TV rights of namely our football rights. And also we have some comparison that was making it more cult namely on the year on year with 2014 because some of the components of the cost function of Spain namely the labor force and the pension fund contribution was retaking during this year. So those are most of the effects that have been scored during the last quarter.
Going forward, during 2016, we are going to have several trends going around. First, we will have a full year of content cost impact, also a full year of wholesale revenues coming out of the obligation that we have to share those contents. And then you have all those savings trends going around. On the effort that were done during 2015 and the effort of the suspension plan that we have been taking in place. Global trends.
In terms of the overall cost impact of content coming in 2016, it would be higher than in 2015 because we will have the Champions League and some of the other content costs will also be upgrade increased, namely the Formula 1 and some MotoGP. But in exchange of that, we'll have positive trend coming from the optimization of the distribution that was provisioned at the end of 20 15, the in sourcing of activities that is being carried out in Spain and then the savings coming from the voluntary suspension plan that we have been taking in place. Overall, and just as a ball figure, I need to tell you that on an ongoing basis, on a recurring basis, the savings coming from the voluntary suspension plan is higher than the extra content cost that we are going to have, recurrently. So we do think that OETA trend should improve the coming quarters in Spain. And taking your question on Brazil, during 2015, we have significant impacts on OIBDA deteriorating our trends.
1st, we have significant regulatory impact coming from interconnection. 2nd, we have significant bad debt provisioning namely in the 1st 3 quarters of the year. And third, we have a significant inflation on the energy costs that was impacting us all around the year. In exchange of that, we have a few limited exposure to the synergies that were starting to be generated just in the fourth quarter. Going forward, we think that most of the impacts on our core on our compound year on year basis will be smooth.
Namely the energy costs will the full year of 2015. Also remember that budget has been significantly improved, namely in the third quarter. And therefore, that would ease our comparison going going forward. So, and then synergies will be significantly accelerating the rate of flow through cash flow in this year. So we feel comfortable with the trends going forward in Brazil even taking into consideration some of the impacts like the energy costs are here are here to stay.
So overall, I think that the management that our team is doing in Brazil Nelvien synergy generation is being accelerated. The integration has been pretty successful and I guess that we are going to be trying to be very transparent on that as we are being in our German case because I think that the synergy case in Brazil is a credibility factor for us. So you should expect for us to be very transparent on synergies generation going forward.
Thank you, Mandeep. Next question please.
Our next question comes from the line of James Britton Nomura. Please go ahead.
Thanks very much. I'm going to stick with Spain, please. Can you just help us understand where revenue growth in Spain in 2015 actually fell short of your expectations of positive growth clearly it's going in the right direction, but where did it fall short of your expectations, which KPIs were you expecting to be better? Through the year? And then on the Fusion product, I know you talk about churn starting to come down, but I think the Fusion churn has been pretty flat for most of the year.
So when do you expect churn to actually come down below the 1.2% sort of monthly figure?
Well, thanks for your question. In terms of what did not go into the direction that we were foreseeing 2015, there are mainly 2 factors. First, the strike that we have, during the month of April and mid May last year, second, the delay on the approval process of digital plus that delayed our joint, commercial effort. On TV. So those are the 2 major or the 2 largest things that we're not going into the direction that we were contemplating when designing our numbers at the end of 2014.
And in terms of Fusion, you're right. They are somehow flat improving in some products and stable in others. But you need to score into the model the fact that we have been stepping out of retention clauses during 2015. And therefore, having a stable churn without retention clauses and therefore competing with our customers here in Spain without that retention tool is a significant proof point of the fact that our product, it's working. As we speak, we think and remember also that in that meantime with that stable churn is with some ARPU upgrades we have been putting more value for slightly more money.
So those two factors allow us to think that the underlying churn trends are are good and therefore we should see improvements going forward. So to make a long story short, having a stable churn with price moves, price moves, even if we have been upgrading significantly the offer and without retention clauses, I think it's a good outcome for 2015.
Our next question comes from the line of Keval Keroya from Deutsche Bank. Please go ahead.
And one on Spain. Just going back to that time, we've obviously seen some quite important market structure changes. So for example, Entel in Peru, Millicom and Colombia, and 1 most recent in Chile. Can you talk a little bit more about where these smaller players have had an impact on your business and also how the pricing trends have developed in Peru, Chile and Colombia specifically And then secondly, you mentioned the benefits of readjusting your football tariffs in Spain, but obviously your competitors are still charging less than you. To what degree are you concerned about this price gap between you and your competitors?
And do you think it could threaten your ability to monetize the more expensive rights which start in the second half of year? Thank you.
Well, thanks for your question. I mean, regarding the first one on the entry of new players in Chile Peru and competitive dynamics in Columbia in terms of MVNOs. It is true that they are affecting namely on the low end on prepaid, and therefore, on those layers of customers, low end customers, they are having an impact. For different reasons and for different strategy, the strategy of one in Chile is very different from retail in Peru and certainly different from Virgin in Colombia. They are focusing different leaders of customers and they are having an impact.
All our own strategy is to focus on value on value customers to make sure that we do not lose the customers that are generating a better ARPU, better churn because we think we have in all those countries a good network and therefore we can compete on value. We can compete on speed can compete on capacity. So different countries, different dynamics. It is true that they have increasing the low end So far, they are not affecting us on the mid and high end. And that's why underlying revenue trends are still still looking good.
But something that we need to monitor, if in the case they will be moving outwards on the value chain, but we do not see there network or the infrastructure capabilities being able to move into that direction. In the case of Spain, competitors have promoted as we have promoted initially as well. But if we read them right, they are moving upward. I mean, they are moving upwards because exactly the same impact that we are going to have in terms of having more content costs they will have because they will share, they have decided to get those content as well. And therefore, the impact that this is going to have on their accounts is going to be also relevant.
And therefore, we think that they should that they are going to be focused as well in more value. They will provide more value on their offer, but they will we think that they will be moving their ARPU apps apps app as well. So, the trends that we've seen in Spain, not just for us, is a little bit more money for more value and we think this trend is going to affect all our competitors here as well.
Thank you, Keban. Next question please.
Our next question comes from the line
one kind of follow-up question on Spain and the football costs and the economics of the costs. So what I would like to understand is the underlying assumptions you have, maybe with a medium or long term view my numbers might be wrong, but if I look at the total cost of the media Pro deal, billion and then I add up the cost of the match that you were acquiring yourself, the total cost per year is like 1,000,000,000? And then looking at the total pay TV subscribers you have is probably 1,000,000. So the average cost per subscriber a month is not all those clients are paying for football, so probably the average cost with existing now, customers could be like 1,000,000, maybe that's too high. I don't know.
So what I would like to understand is the gap between this EUR50 1,000,000 and the EUR 25,000,000 you are charging. I know that probably is about churn rate I don't know. I would like to understand the economics and also whether, you think that you will end up having to wholesale this or to renegotiate the agreement with media Pro if the CNMC forces to wholesale to Vodafone and Orange as well? Thank you.
Thanks, Luis. Well, 1st of all, this, the number that you were doing with the Mediapro deal, I think that we need to calculate the fact that our competitors are probably going to have the same content. And therefore, we, Mediapro will sell that to them and therefore, the amount that we will be paying will be less. We will not have that differentiation, but the cost will be split between the players. We are by law required to share the party data for the best match of the weekend with them.
And therefore, that will have also wholesale revenues And therefore, you need to score that when running your numbers on average cost. Having said that, you need also to consider the evolution on the average cost going that happened during 2015. And going forward, the churn reduction, the impact on the revenue increases that we are having is also going to have an impact on the profitability of the content costs that we are acquiring. Therefore, I think that before running the Tiffany numbers, you need to know how much of the cost going forward is going forward is going to be shared. Check on what is going to be the impact on potential ARPUs of the different products on the different players.
And again, our view is that promotions are going to be much more limited. And therefore, we think that penetration of the 3rd factor is expanding the penetration, the footprint of this initial customer base that are acquiring football. All those trends should help you to calculate what is the real impact of the content cost going forward. In our numbers, it makes in our numbers, it contributes to significant revenue growth for Spain. It help us to stabilize OIBDA and it has a positive impact on free cash flow generation.
Thank you, Riz. Next question, please.
Our next questions come from the line of Paul Marsh, Berenberg Bank. Please go ahead.
I just want to understand why the dividend, the cash dividend commitment is dependent upon the sale of 2 because you published today that your cash earnings per share was and you gave guidance for 4% revenue growth stable margins, you know, I guess that might suggest that your cash dividend your cash earnings per share in 2016 should be more than maybe 0 point 7 $5 in which case the dividend would be one times covered. So, you know, why would you not still pay out a full cash dividend bearing in mind, obviously, that that cash earnings per share is both continuing and discontinued businesses. So it includes the cash flow you would be getting from 2 earnings. So that's my first question. And then the second question is just relating to the €9 promotion that you've been running through December because you say in the press release that this is going to generate incremental revenues of 1,000,000 in Q1, but that's compared to Q4.
And Q4 I'm assuming would have been impacted by spin down from existing customers who previously were spending EUR40 to EUR50 taking advantage of the promotion at So my question is, is it incremental to the revenues of the business relative to before you run the promotion.
Hi, Paul. Regarding your first question, if we were if the UK sale was not to be completed, we would have more free cash okay, we would have more free cash flow per share. So, the fact that we are conditioning moving to the full cash dividend with respect to the UK transaction is not linked to dividend coverage on free cash flow per share because actually free cash flow that we derive from the UK would help us to have an even better coverage on free cash flow. The matter, the financial point here is that we would need some time to implement other measures to reduce the debt on our balance sheet if we were not to close the UK sale. And the dividend, staying it in scrip and knowing that around 80% of our shareholders are opting for shares set of cash could help us to have some cash preservation in our balance sheet.
So it's, it is not due to dividend coverage, which actually keeping the UK in our perimeter would improve that coverage, but is linked to a balance sheet position and to preserve some cash in order to shore up the net debt position, the leverage position in the balance sheet until a second or an alternative plan, were to be implemented regarding that asset.
Taking your question on the end of the promotion in Spain and the impact going forward First, we are talking about the net effect of all things being considered. The customers that move from the high end package downward and also the ones that have been moving upward. The overall outcome of the out of the roughly 700,000 customers that went on to that promotion is that a significant amount of them, I would say more than 78% of them has moved upwards. Therefore, we have been having an upward move that is more than compensating the initial downward move. So it's a net effect.
And therefore and they are moving upwards in different package some of them move into the premium package or move just into the football or they're just moving to the fiction package. Overall, the impact that that is having is roughly between 10,000,001,000,000 additional €1,000,000 per month. And that's why we have been giving this indication of slightly more than 1,000,000 per quarter. So, summarizing is a net impact and is considering the net effect of the ones that initially were up and get down to the promotion and the ones that have moving upward after entering into the promotion. The net impact of that is positive in 1000000 per quarter.
Thank you, Paul. We have time for a final, just for one final question please. Thank you.
Our last question comes from the line of Ivan Lee BBVA. Please go ahead.
Hello. Good morning. Thank you. Just so my two questions. One is One is on Spain, I would like to understand if you really have the choice to freeze fiber deployment in in regulated areas given the investment you're making on content.
And by these, I mean, you think you can deliver a sufficiently attractive customer experience on the IPTV product through the copper network? That's the first question. And the second one is is on infrastructure. You talk about different alternatives for tax use. Would that include losing control of the asset?
And I would like to understand if for you guys, there is a difference between strategic structure, you have to control a non strategic infrastructure that you can sell?
Thanks, Ivan.
On the first one,
if we have the choice, well, first, I think that we need to see if we can keep growing in revenues because with this new framework, the answer is yes. And still we have not decided if we will keep going or not into the other zone because we don't know the prices that are going to be established for this indirect access or for the wholesale Bstream access. But for the meantime, as and again, I have stressed as well that there are some positive on this new regulation like the geographical segmentation and the retail minus orientation when deciding the price of the indirect access both the midstream wholesale and the local access. Having said that, we have 14,300,000 households passed. And therefore just connecting those households would give us significant room to maneuver during the next 3 years.
And on top of that, we do not disregard get into other zones depending on what the price of this unbundling might be. So that's why we see value because we have been acquiring the content rights for 3 years and with the existing regulation, we see value ahead of us and keep growing our customer base and therefore accelerating the popularity of of the distribution the distribution capabilities that we'll have for this content cost. And then on the And also remember that we have 100 percent coverage of the to satellite through the Digital Plus acquisition and therefore we can also optimize through the distribution there. And then on the infrastructure go, we are expanding very heavily over our infrastructure layer. Was that to be fiber backbone, backhaul, submarine cables, distributions, we are consolidating data centers.
So we have a first layer a first platform of infrastructure that this is amazingly powerful. And we need to have operating control of that, but in some infrastructure we don't need to have a full control of that. And that's why we think that having investors that are attracted by sharing the growth that we are foreseeing out of the creation of this big infrastructure that is going to deliver speed and capacity is something that is appealing. So the answer is yes, we see value in sharing that in mostly in order to accelerate our and being able to sustain our infrastructure deployment and also we aim to have operational control of the strategic parts of our network. And therefore on the strategic ones, we will not be losing control.
Well, thank you very much to all of you. For attending this conference call. And I would like to make a final comment. Which is a real earnings per share of this company is if you look at the quotation and you make, you will find what is her opinion ratio? We are fully committed and I said fully committed to the dividend of 0.75 and the dividend yield is about 8%.
As I have told you, we are fully committed to this dividend as a minimum for the coming years. And also let me just points, which is very, very important. We are talking my presentation, data monetization is there and it's going to increase clearly all our financial metrics, revenues, EBITDA and net income. Thank you very much. And I hope with you all a good weekend.
Thank you.
Telefonica, January, December 2015 results conference call is over. You may now disconnect your line. Thank you.