Telefónica has presented an optimistic financial outlook for the first half of 2025, confirming the solidity of its strategy and the viability of its projections for the current year. The operator has recorded a net profit of 558 million euros from its continued operations, which allows it to ratify its financial goals for 2025These include year-over-year organic growth in revenue, EBITDA, and EBITDAaL-CapEx, a capex/sales ratio of less than 12,5%, cash generation similar to that of 2024, and a reduction in leverage.
In addition, the company has reiterated its commitment to shareholders by confirming a dividend of 0,30 euros per share in cash for 2025, which will be paid in two installments: 0,15 euros on December 18 and the remaining 0,15 euros in June 2026.
A relevant aspect of this period has been the progress in the reduction of exposure to Hispam. Telefónica has completed the sale of its shares in Telefónica Uruguay and Telefónica Ecuador, operations that are added to those already closed in Argentina and Peru, already that of Colombia, pending approval. Regarding these divestments, Marc Murtra, president of Telefónica, stated: "We are making progress in defining our strategic review, but in the meantime we continue to execute our mandate for the year with discipline and professionalism."It is important to note that, for comparative purposes, Telefónica has reclassified Telefónica Argentina, Telefónica del Perú, Telefónica Uruguay, and Telefónica Ecuador as discontinued operations as of January 1, 2025, restating the results for 2024.
Telefónica's consolidated revenues in the second quarter reached 8.953 millones de euros, adding a total of 18.013 billion euros in the first half of the yearThis represents organic growth of 1,5% for both the quarter and the half-year. However, exchange rate fluctuations impacted the reported figure, with a 3,7% quarter-over-quarter decrease and a 3,3% half-year decrease.
By segments, the residential business (B2C) generated 5.323 billion euros in the second quarter, with organic growth of 2,1%, while the business-to-business (B2B) contributed €2.021 billion, with significant organic growth of 5,2%. Wholesale revenues accounted for €1.609 billion in the second quarter.
In the geographical area, Telefónica Spain showed a 1,9% increase in quarterly revenue and achieved its largest net customer gain since the third quarter of 2018. Telefónica Brazil experienced a sequential improvement in its quarterly results in local currency, with a 7,1% increase in revenue and 8,6% in EBITDA, marking its strongest growth since December 2023. For its part, Telefónica Germany recorded a solid commercial performance in the mobile business, with net profit 12,1% higher than the first quarter of the year.
Adjusted EBITDA for the second quarter was 2.921 millones de euros, up 1,2%, reaching 5.867 millones de euros In the half-year period, which represents a 0,8% increase. However, exchange rate fluctuations resulted in a decrease in reported EBITDA of 4,8% and 4,6%, respectively.
Telefonica Tech continues to consolidate itself as a growth engine, with a 12,5% increase in revenue in the second quarter, reaching €566 million. In the first half of the year, its sales reached €1.074 billion, an increase of 9,6%.
The Group's net income for the second quarter was a loss of €51 million, impacted by a €206 million loss from discontinued operations (Argentina, Peru, Uruguay, and Ecuador). Excluding these, continuing operations generated a net profit of €155 million. Loss for the half-year stood at €1.355 million, with €558 million in profit from continuing operations and €1.913 million in losses from discontinued operations.
La Telefónica's investment In the first half of the year it stood at 2.003 millones de euros, 1,9% less than the previous year in organic terms, maintaining the investment-to-sales ratio at 11,1%, in line with expectations. operating cash (EBITDAaL-CapEx) reached 2.580 billion euros in the first half of the year, remaining stable in organic terms. free cash flow (FCF) totaled 291 million euros at the end of June, reflecting the usual seasonality.
La net financial debt Telefónica's revenue fell by 5,5% year-on-year, reaching 27.609 billion euros as of June 30Solid long-term financing activity, amounting to €7.593 billion in the first half of the year, has enabled the company to maintain a robust liquidity position of €18.649 billion, with maturity coverage of more than three years and an average debt life of 10,9 years.
Telefónica ended the first half of the year with 348,6 million accesses, highlighting the importance of its infrastructure. The company is positioned as global leader in fiber, with more than 171 million real estate units (UUII) passed with ultra-broadband networks, of which 81,4 million correspond to FTTH. As for the 5G technology, coverage reaches 94% of the population in Spain, 98% in Germany, 64% in Brazil and 78% in the United Kingdom.
In the field of sustainability, Telefónica continues to make progress towards its goals aligned with the United Nations SDGs. In June, TIME magazine and Statista recognized it as the second most sustainable company in the worldThe company has updated its Climate Action Plan, reinforcing its commitment to achieving net-zero emissions by 2040. It has also been recognized by CDP as a Leader in Supplier Engagement for the sixth consecutive year.
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