Telefónica (TEF) Q1 2025 earnings summary

Executive summary

• Achieved resilient operational progress and organic growth in revenue (+1.3%) and EBITDA (+0.6%) year-over-year, with NPS at record highs and low churn in core markets; customer base reached 354 million accesses.

• Strategic review ongoing, with significant progress in reducing Hispam exposure via completed sales of Argentina and Peru and a binding agreement for Colombia; capital reallocated to core markets.

• Confirmed full-year 2025 guidance and dividend policy, with results aligned to internal expectations.

Financial highlights

• Organic revenue grew 1.3% year-over-year to €9,221 million, with EBITDA up 0.6% organically; reported revenue declined 2.9% due to FX impacts.

• Free cash flow from continuing operations was -€205 million in Q1, impacted by seasonality and FX; net financial debt stood at €27,049 million, down €112 million since December.

• CapEx for the quarter was €938 million, with CapEx/Sales ratio at 10.1% and intensity declining year-over-year.

• Net income from continuing operations was €427 million; discontinued operations (Argentina and Peru) posted losses of €1,731 million.

Outlook and guidance

• 2025 guidance reiterated: organic growth in revenue, EBITDA, and EBITDAAL-CapEx; CapEx/Sales to remain below 12.5%; free cash flow expected to be stable versus 2024, with improvement expected through the year.

• Dividend of €0.30 per share for 2025 confirmed, payable in two tranches (December 2025 and June 2026).

• Strategic review conclusions to be communicated in H2 2025.