Telefónica reported €8,953 million in revenue for Q2 2025, which represents a reported decline of 3.7 percent year-over-year, but masks underlying organic growth of 1.5 percent. Adjusted EBITDA stood at €2,921 million, down 4.8 percent in reported terms but up 1.2 percent organically. The company reinforced its full-year 2025 guidance and reaffirmed a dividend of €0.30 per share, payable in two equal tranches in December 2025 and June 2026.
Marc Murtra, Chairman and CEO, stated: “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.” He added that the quarter’s results are “in line with internal expectations,” demonstrating Telefónica’s resilience amidst challenging market dynamics.
Regional performance showed strength in Telefónica España, where both service revenue and EBITDA rose 1.9 percent in Q2—helped by the strongest net adds since Q3 2018 and double-digit growth in IT sales, over half of which came from B2B customers. Telefónica Brasil delivered standout performance with organic revenue up 7.1 percent and EBITDA climbing 8.6 percent, supported by a robust EBITDA‑CapEx margin of 16.3 percent.
The company’s free cash flow from continuing operations improved significantly, increasing €718 million quarter-over-quarter to €505 million, albeit still down 6.6 percent year-over-year. Net financial debt declined by 5.5 percent to €27,609 million as of June 30, bolstered by strong liquidity of approximately €18.6 billion and an average debt maturity of 10.9 years.
Telefónica posted a net income of €155 million in the second quarter from continuing operations, though this was offset by €206 million in losses from discontinued operations—including Argentina, Peru, Uruguay and Ecuador—resulting in an overall Q2 net loss of €51 million. First-half net income from continuing operations was €558 million, while total losses, including discontinued operations, reached €1,355 million.
Capital expenditure in the first half totaled €2,003 million, 1.9 percent lower organically than the previous year, keeping CapEx to sales at 11.1 percent—below the full-year target of 12.5 percent. EBITDAaL‑CapEx came in at €2,580 million, stable organically and down 5.9 percent on a reported basis due to currency effects.
Infrastructure expansion continued with 1.5 million fiber premises added in Q2, bringing the ultra‑broadband network to more than 81.4 million premises passed. The 5G rollout reached 77 percent coverage in core markets. Telefónica’s customer base climbed to approximately 348.6 million accesses.
Strategically, Telefónica accelerated its transformation by exiting several Latin American markets, completing the sale of its operations in Argentina and Peru and signing agreements for divestments in Colombia (€368 million), Uruguay (€389 million) and Ecuador (€330 million), aligning with its focus on Europe and leadership in Brazil.
Public guidance remains on track: Telefónica aims for full-year organic growth of 1.5 percent in revenue, 0.8 percent in EBITDA, slight contraction in EBITDA‑CapEx, free cash flow comparable to 2024, and maintained dividend payouts. Leverage stood at 2.78x as of June 2025.
Overall, Telefónica has delivered strong operational momentum in core markets, underpinning investor confidence despite macroeconomic pressures and strategic transitions.