Telefonica SA

TEF

Equity

ISIN US8793822086 / Valor 467105

New York Stock Exchange, Inc (2024-12-24)

USD 4.04+0.25%

Telefonica SA
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About company

Telefónica SA is a global telecommunications company headquartered in Spain, with a significant presence in several countries across Europe and Latin America. The company provides a wide range of services including fixed and mobile telephony, broadband, and television to both consumer and business customers. Telefónica operates under various commercial brands such as Movistar, O2, and Vivo, catering to different market segments with tailored offerings. In the business sector, Telefónica supports companies of all sizes and industries in their digital transformation journey, offering services in cybersecurity, cloud computing, Internet of Things (IoT), big data, artificial intelligence, and blockchain through its Telefónica Tech division. Additionally, Telefónica Global Solutions focuses on delivering innovative services and global connectivity solutions. The company is also at the forefront of deploying advanced network technologies, including fiber optics and 5G, to enhance connectivity and support the digital ecosystem.

Summarized from source with an LLMView SourceSector: Telecommunications

Revenue Performance

In the third quarter of 2024, Telefónica SA reported a revenue of €10,023 million, marking a 2.9% decrease compared to the same period in the previous year. Despite the decline, the company maintained strong underlying performance in local currencies across its core markets, including Spain, Brazil, and Germany. The year-to-date revenue for the first nine months of 2024 was €30,418 million, showing a slight decrease of 0.3% year-over-year.

EBITDA and Profitability

Telefónica SA's EBITDA for Q3 2024 was €3,260 million, reflecting a 2.5% decrease from the previous year. However, the company achieved a positive EBITDAaL-CapEx growth of 2.1% year-over-year for the first nine months of 2024. The EBITDA margin in Brazil improved significantly to 44.6%, up from 41.5% in the previous quarter, demonstrating strong profitability in the region.

Free Cash Flow Growth

Telefónica SA experienced a substantial increase in free cash flow (FCF) during Q3 2024, with a growth of 89.5% year-over-year, reaching €866 million. For the first nine months of 2024, the FCF grew by 27.7% compared to the same period in 2023. This growth was largely shielded from foreign exchange volatility through natural hedging strategies.

Dividend and Shareholder Returns

The company confirmed its shareholder remuneration plan for 2024, with a dividend of €0.30 per share in cash to be paid in two installments: €0.15 in December 2024 and €0.15 in June 2025. Additionally, Telefónica SA completed a reduction of share capital by canceling 80,296,591 of its own shares in April 2024, further enhancing shareholder value.

Strategic Outlook

Telefónica SA remains on track to meet its full-year 2024 financial guidance despite facing foreign exchange headwinds. The company reiterated its targets, including a revenue growth of approximately 1% year-over-year and an EBITDA growth of 1% to 2% for 2024. Telefónica continues to focus on strategic initiatives, such as expanding 5G coverage and enhancing customer engagement, to drive future growth and maintain its competitive advantage.

Summarized from source with an LLMView Source

Key figures

2.67%1Y

-7.13%3Y

-42.8%5Y

Performance

20.2%1Y

24.7%3Y

31.9%5Y

Volatility