Spain · Delayed Price · Currency is EUR Telefónica Earnings Call Transcripts
Fiscal Year 2026
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Revenue, adjusted EBITDA, and cash flow grew year-on-year, with Spain and Brazil accelerating and Germany showing resilient performance. Net debt and cost of debt declined, and the company remains confident in meeting 2026 guidance, supported by asset sales and operational efficiencies.
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The meeting approved all agenda items, including accounts, a EUR 0.15 dividend, and new director appointments. Strategic focus remains on European consolidation, innovation, and operational efficiency, with continued investment in AI, fiber, and 5G. Shareholders raised concerns on dividends, infrastructure, and pensions.
Fiscal Year 2025
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Delivered on all 2025 commitments with revenue and EBITDA growth, strong cash flow, and major portfolio simplification. 2026 guidance upgraded, with continued focus on efficiency, digital services, and disciplined capital allocation.
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A new 2026–2030 plan targets profitable growth through customer experience, digital services, and efficiency, with financial guidance for steady revenue, EBITDA, and cash flow growth. Consolidation and M&A are considered upside, not included in base guidance, and capital allocation prioritizes investment, rating, and dividends.
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Accelerated portfolio transformation in Hispam and strong commercial momentum in core markets drove revenue and EBITDA growth in Spain and Brazil, while Germany faced challenges from the 1&1 migration. Free cash flow guidance was updated to EUR 1.5–1.9 billion, with most Hispam exit impacts concentrated in 2025.
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Q2 saw organic revenue and EBITDA growth, positive free cash flow, and progress on strategic initiatives, including asset sales and network upgrades. Spain and Brazil led performance, while the company reiterated 2025 guidance and expects further improvement in H2.
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Operational and financial performance was strong in core markets, with Spain, Brazil, and Germany all showing growth in key metrics. Asset sales in Hispam improved leverage and free cash flow quality, while 2025 guidance for organic growth and stable free cash flow was reiterated.
Fiscal Year 2024
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2024 results exceeded guidance with 14% free cash flow growth and strong operational momentum in core markets. Portfolio optimization advanced with the sale of Argentina and Peru insolvency, while 2025 guidance targets further organic growth, lower CapEx intensity, and a €0.3/share dividend.
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Q3 saw strong operational progress and free cash flow growth above targets, with Spain, Brazil, and Germany delivering robust results despite FX headwinds. Strategic investments in fiber and 5G, disciplined capital management, and effective hedging support confidence in meeting 2024 guidance.
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Q2 2024 delivered revenue growth of 1.2% year-on-year, with EBITDA minus CapEx up 11.5% and free cash flow on track for over 10% growth, supported by strong performance across all main markets and strategic network agreements. FX and tax headwinds are managed within guidance.