Telefónica achieved profits of 989 million euros in the first nine months of 2024, 21.7% less year-on-year, affected by 925 million euros of non-recurring impacts that are highly focused in the third quarter due to the deterioration of goodwill in Peru. In adjusted terms, net profit has reached 1,914 million euros until September, 16.8% more. Likewise, the group has reported an acceleration of commercial activity in its main markets, such as Spain.
«These results allow Telefónica to reiterate all its financial objectives for the whole of 2024. These goals consist of revenue growth of around 1%, Ebitda between 1% and 2% and operating cash also between 1% and 2%, an investment figure on income of up to 13% and an increase in free cash flow of more than 10%,” the group indicated in a statement.
Likewise, the telecom has also confirmed the shareholder remuneration corresponding to 2024, consisting of a cash dividend of 0.30 euros per share payable in two tranches: December 2024 (0.15 euros) and June 2025 (0.15 euros).
«Our GPS action plan is ambitious and continues to deliver results to move in the right direction and consolidate profitable growth. In the first nine months of the year, in a global context of uncertainties, Telefónica has obtained a profit of almost one billion euros and reiterates all its financial objectives for the entire year. In addition, we confirm shareholder remuneration for 2024. We continue to transform networks with a strategic approach based on quality and strength, and we do so with a higher degree of customer satisfaction. The opportunities ahead are enormous and Telefónica will continue to effectively leverage its resources to drive growth at the service of our shareholders and customers,” said the president of Telefónica, José María Álvarez-Pallete.
The group’s accounts have been especially impacted by the evolution of exchange rates, particularly the Brazilian real. The depreciation of currencies has caused a quarterly impact of 429 million euros on revenues and 159 million euros on Ebitda. Thus, revenues have remained practically stagnant year-on-year in the first nine months at 30,418 million euros.
By territories, Telefónica Spain’s Ebitda continues on the path of growth with an increase of 1% in the third quarter, to 1,155 million euros, and 0.6% in the first nine months, to 3,387 million euros. «This evolution takes place in a context characterized by the acceleration of the growth of commercial activity, with the highest net gain of clients in Spain in six years; due to greater customer satisfaction, with an NPS (‘Net Promote Score’) of 34 points, 2 percentage points above June; and for greater loyalty, with a churn of 0.8%, the lowest level in history. In addition, the average income per client (ARPU) remains above 90 euros,” the group said.
In Germany, Ebitda has grown by 3% in the quarter, to 694 million euros, and by 3.9% between January and September, to 2,027 million euros. In Brazil, for its part, Ebitda has fallen by 5.9% in the quarter, to 1,030 million euros, due to the impact of exchange rates, but in the first nine months it has grown by 2.2%, to 3,066 million euros. «In the United Kingdom, VMO2 has confirmed its financial objectives for the entire year, a commitment that includes the distribution of dividends to shareholders, and at Hispam the strategy of reducing capital exposure in the region and continuing to operate more efficient and with lower costs,” added the group.
Likewise, the company has announced that it closed the month of September with 393 million accesses, 2% more. “Fiber and mobile contract customers continue to increase, with an accumulated growth of 11% and 3%, respectively, compared to September 2023,” Telefónica has elaborated.
Partnership with Vodafone
Likewise, coinciding with the presentation of results, Telefónica has announced that it has reached an agreement with Vodafone for the creation of a fiber joint venture. This intention had already been communicated last July and is now taking shape.
The corporate purpose of the new joint venture “is the marketing of a fiber-to-the-home (FTTH) network for its partners, Telefónica Spain and Vodafone Spain, so that they can in turn provide retail and wholesale access services. broadband. The first will have 63% of the company’s capital and the second the remaining 37%.
«The company will cover approximately 3.6 million real estate units, with assets that are currently part of the Telefónica de España fiber and that represent approximately 12% of its national network. It is estimated that the Company will initially have around 1.4 million clients, which implies a penetration level of approximately 40%. As part of the transaction, a series of service provision contracts will be signed by the Telefónica group with the company,” they reported in a statement.
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