Telefónica tumbled more than 7% on the Spanish stock market this Wednesday, the sharpest drop in the Ibex 35 and its worst stock market session since December 2020, following an agreement between Vodafone and German mobile operator 1&1, so far one of its main customers.
Telefónica closed this Wednesday at 3,558 euros per share, down 7.03% and its lowest level since February 14 this year.
Telefónica had not suffered a slump of this caliber since December 11, 2020. On that day, the value on the Spanish stock market fell by 8.11%.
Vodafone, the third largest operator in Spain, and 1&1 have signed an exclusive long-term roaming agreement in Germany, allowing customers of the German company to use the British multinational’s network in that country.
Penalty against Telefónica Germany
The collapse also hit the German subsidiary of the Spanish multinational, which collapsed by more than 15% after the agreement and despite confirming its forecasts and dividends.
The actions of Telefónica Germany In the TecDAX technology index and the MDAX for medium-sized companies on the Frankfurt Stock Exchange, prices fell by 17.9% to EUR 1.99 after the agreement was published.
“Regardless of today’s announcement by 1&1 to cooperate with Vodafone on national roaming, 1&1 has contractual obligations with Telefónica Deutschland” in fourth-generation mobile communications until the end of June 2025, which ensures billing, the company’s German subsidiary announced. Spanish telecommunications company.
The United Internet company, to which 1&1 belongs, shot up by 16.9% to EUR 15.94 in the TecDAX of the Frankfurt Stock Exchange after the deal.
Vodafone, on the other hand, was little changed and closed slightly up 0.03%.
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