Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Wednesday, March 12, 2025

Telefónica sets aside US$26 million in Chile as it reviews its Latin American strategy.

Telefónica has set aside more than US$26 million in Chile for legal disputes. The telecommunications company, chaired by Marc Murtra, is immersed in a divestment process in Latin America and is facing various lawsuits in the country that it believes are likely to lose.

The company explains in the statements of Telefónica Móviles Chile that both the company and its subsidiaries in the country are involved in various lawsuits, including civil, labor, and criminal lawsuits, for various reasons and amounts.

While it asserts that, based on legal advice and the company's historical results in similar legal proceedings in the country, the company sees a "remote possibility" of ultimately paying for most of the lawsuits, there are some in which it considers it possible it could end up losing at trial.

Thus, it estimates a risk of probable loss, which has led the company to make provisions of US$1.9 million as of December 31, 2024.

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