Telefónica sticks to 2025 targets as FX hits revenue, profit steady

Published 30/07/2025, 10:20
© Reuters.

Investing.com -- Telefónica on Wednesday reported a net income of €558 million from continuing operations in the first half of 2025, while confirming its financial targets and dividend plans for the year.

The telecommunications company achieved revenues of €8,953 million in the second quarter and over €18,000 million in the first half, with organic growth of 1.5% in both periods.

However, exchange rates negatively impacted reported revenues and EBITDA, which decreased by 3.3% and 4.6% respectively in the first half.

Spain and Brazil showed strong organic sales growth of 1.9% and 7.1% respectively in the second quarter, while Germany’s contract mobile net adds increased by 12.1% in the same period.

"We are making progress in defining our strategic review, but in the meantime, we continue executing our mandate for the year with discipline and professionalism," said Marc Murtra, Chairman and CEO of Telefónica.

The company confirmed its cash dividend of €0.30 per share for 2025, to be paid in two tranches: €0.15 in December 2025 and €0.15 in June 2026.

Telefónica Tech saw revenue growth of 12.5% in the second quarter to €566 million, reaching €1,074 million for the first half, up 9.6%.

The Group’s overall net income in the second quarter registered losses of €51 million, resulting from €155 million net income from continuing operations offset by €206 million losses from discontinued operations.

First-half losses totaled €1,355 million, with discontinued operations accounting for €1,913 million in losses.

The company has made significant progress in reducing its Hispam exposure following sales of shares in Uruguay and Ecuador operations, adding to previously announced transactions in Argentina and Peru.

Net financial debt decreased by 5.5% year-on-year to €27,609 million as of June 30, with a solid liquidity position of €18,649 million.

Telefónica ended the first half with 348.6 million accesses and maintains its position as a global leader in fiber infrastructure, with more than 171 million premises passed with ultra-broadband networks.

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