Telefonica SA

Latest Results (17.12.2024):

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 last year. Despite the overall decline, Telefónica España showed a slight increase of 1.0% in revenue, while Telefónica Brasil and Telefónica Deutschland experienced declines of 6.4% and 1.6%, respectively.

EBITDA and Profitability

Telefónica SA's EBITDA for Q3 2024 stood at €3,260 million, reflecting a 2.5% decrease year-over-year. However, Telefónica España managed to achieve a 1.0% increase in EBITDA, while Telefónica Brasil and Telefónica Deutschland saw decreases of 5.9% and 3.0%, respectively. The company's EBITDAaL*-CapEx was €1,253 million, showing a marginal decline of 0.1% compared to the previous year.

Free Cash Flow Growth

Telefónica SA reported a significant increase in free cash flow (FCF) for Q3 2024, with a growth of 89.5% year-over-year, reaching €866 million. This substantial growth in FCF is attributed to the company's strategic focus on operational efficiency and cost management, which has helped shield it from foreign exchange volatility.

Dividends and Shareholder Returns

Telefónica SA confirmed its commitment to shareholder returns by announcing a dividend of €0.30 per share for 2024, to be paid in two tranches of €0.15 each in December 2024 and June 2025. Additionally, the company completed a share capital reduction by canceling 80,296,591 of its own shares in April 2024, further enhancing shareholder value.

Strategic Outlook

Despite facing foreign exchange headwinds, Telefónica SA remains on track to meet its full-year 2024 financial guidance. The company anticipates achieving a revenue growth target of approximately 1% year-over-year and an EBITDA growth target of 1% to 2%. Telefónica continues to focus on strategic initiatives, including network transformation and sustainability, to drive long-term growth and profitability.