Executive Summary
Masmovil is Spain's fourth-largest telecom operator, providing fixed and mobile voice and internet services to business and retail customers. The group generated revenue of €1.451 billion and served 7.8 million subscribers through its brands Yoigo, Masmovil, Pepephone, Llamaya, and Lebara, as of Dec. 31, 2018. Over the last 10 years, the group has managed to significantly expand its network coverage, size, and service offering, mainly through acquisitions, maintaining a sustained expansion strategy. Growth accelerated in recent years with its listing on the Madrid Stock Exchange in 2017, and the acquisitions of Pepephone and Yoigo in 2016, Llamaya in 2017, and Lebara in 2018.
Masmovil's ESG evaluation score of 67 reflects its relatively recent but growing awareness and commitment to sustainability, the company's adequate preparedness for strategic risks, and the medium exposure of the telecoms sector to environmental and social risks. The company has prioritized the formalization of a robust governance framework in order to accompany and structure its rapid expansion over the past years. It has also consistently put customer engagement at the core of its strategy, secured multiple long-term roaming agreements, and more recently focused on data protection, cybersecurity, and talent management. However, the company has yet to formalize other aspects of its sustainability strategy, such as how it assesses ESG risks stemming from its contractors, tracks and reports ESG metrics on a more regular and consistent basis, and completes the integration of the information systems of its recent acquisitions.