Telefónica (TEF) CMD 2025 summary

Strategic vision and transformation

• Launched the Transform and Grow Strategic Plan for 2026–2030 to become a world-class European telco with profitable scale, focusing on customer centricity, technological capabilities, operating model simplification, and talent development.

• Six strategic pillars: best-in-class customer experience, B2B expansion, B2C expansion, technological evolution, operating model simplification, and talent development.

• Plan built through extensive collaboration, with 27 work streams and over 5,750 hours of sessions, and unanimously approved by management and strategic shareholders.

• Emphasizes tough decisions, faster execution, and balancing short- and long-term priorities to address high leverage and operational complexity.

• Industry trends include technology disruption, geopolitical polarization, and a widening technology gap between Europe and the US/China.

Market context and growth opportunities

• Operates in four core markets: Spain, Brazil, Germany, and the U.K., representing over €170 billion in telco market value.

• Each market has unique opportunities: Spain focuses on B2C ecosystem and B2B digital services; Brazil on network expansion and ecosystem growth; Germany on convergence and fiber; U.K. on premium convergence and B2B digital services.

• B2B revenues targeted to reach 26% of group revenues by 2028, with strong focus on cybersecurity, cloud, IoT, and Industry 4.0.

• Digital services expected to grow over 10% annually through 2030, with ecosystem revenues in B2C projected at 3.4% CAGR from 2025–2028.

• B2C strategy aims for 74% convergence over fixed broadband by 2028 in key markets.

Strategic plan and operational initiatives

• Best-in-class customer experience targeted, with NPS improvements and reduced churn across core markets.

• Technological evolution includes €32B cumulative network and IT investment (2026–2028), network automation, and AI deployment.

• Operating model simplification targets a 25% OpEx reduction in corporate and business units by 2027/2028.

• Efficiency plan to deliver €2–2.3B gross OpEx/TotEx reduction by 2028, rising to €3B by 2030.

• Initiatives include network optimization, digital transformation, automation, and asset sales.