Telefónica, the Spanish telco, has presented the results for the first quarter of 2025, marked by the ratification of financial targets for the full year and the strengthening of businesses in the main markets. Net income from continuing operations – those that remain within the Group – stood at €427 million up to March. In addition, both revenues and EBITDA have grown organically in the first three months of the year.
In relation to the financial targets for 2025, Telefónica anticipates a year-on-year organic growth in revenues, EBITDA and EBITDAaL – CapEx, and sets a target for Capex/Sales to be less than 12.5 per cent, a FCF similar to that of 2024 and a reduction in leverage.
The company also said it made progress in the execution of its plan to reduce exposure to Hispam thanks to the two operations carried out in the first quarter, the sale of the business in Argentina and the agreement to sell the stake in Telefónica Colombia, which is still pending the relevant approvals for its definitive closing. Also, the company announced the divestment of Peru last April.
“The results for the first quarter meet our expectations, while free cash flow reflects the usual seasonality. The Group’s results will improve throughout the year, in line with our forecasts for 2025. During the second half of the year, we will present the conclusions of the strategic review we are conducting,” said Emilio Gayo, COO of Telefónica.
In relation to the divestments made in Hispam, the company has classified Telefónica Argentina and Telefónica del Perú as discontinued operations in the first quarter of 2025 and has revised, for comparative purposes, the results for 2024.
Telefónica reported organic revenue growth of 1.3 per cent in the first quarter, to a total of €9. 2 billion, driven by the good performance of revenues from the B2C (+5.4 per cent) and B2B (+1.8 per cent) businesses. In reported terms, revenue fell by 2.9 per cent impacted by the effect of exchange rates, which subtract 4.1 percentage points.
Adjusted EBITDA reached €3.01 billion and registered an organic growth of 0.6 per cent, although it declined by 4.2 per cent in reported terms due to the currencies’ impact, which accounted for 4.4 percentage points.
The good performance of the core markets has led to the strengthening of leadership in the different countries. Telefónica España recorded organic revenue and EBITDA growth of 1.7 per cent and 1 per cent, respectively; Telefónica Brasil grew above inflation, both in revenues (+6.2 per cent) and EBITDA (+8 per cent); and Telefónica Germany improved in operating terms, thanks to the commercial momentum of the company, and achieved an increase in operating cash flow (EBITDAaL – CapEx) of 4.8 per cent.
The Group’s net income for Q1 showed a loss of €1.3 billion attributed to the consequence of continuing operations, i.e., businesses that remain within the Group, which achieved a result of €427 million; and discontinued operations, i.e., assets that are no longer part of Telefónica (Argentina and Peru), which suffered losses of €1.7 billion.
