A disappointment or surprise? In terms of net profits, analysts estimate that the 36 companies listed on the Ibex will need to show revenues of 39.327 billion euros for the 2011 fiscal year in order to not disappoint the markets.
It should be considered that this figure is already 23.75% less than the earnings that these companies reported in 2010 when they declared profits of 51.579 billion euros.
It is apt to highlight a big factor that led to such a sharp decline in profits: Telefónica was introduced to the index this year. Contraction of demand in Europe, particularly in the Spanish market, has negatively impacted this blue chip company to the point that, according to investment bank averages, its net profits are going to drop 53% year to year and end up at a disappointing 4.794 billion euros.
In fact, the progression of their operating income (ebitda) offers a more balanced idea about the company's real status: from 2010 to 2011 revenues dropped 21%, or by 20.307 billion euros. If Telefónica's results are excluded, then Ibex 35 profits would have only fallen by 16% in 2011.