Telefónica loses 4,318 million in 2025 resulting from the price of the ERE and the sale of 4 Latin American subsidiaries | Companies | EUROtoday

Telefónica recorded losses of 4,318 million euros in 2025 as a result of accounting impression of the sale of the Latin American subsidiaries, the depreciation of property and the price of employment regulation file (ERE) in Spain. The losses are notably larger than these recorded in 2024, which totaled 49 millionand are ranked because the second largest in its historical past after these suffered in 2002, which rose to five,576 million euros as a result of collapse of Terra and the fee of UMTS cell licenses.

Excluding extraordinary objects, the web revenue from persevering with operations in 2025 – these companies that stay throughout the group – would have reached 2,122 million euros, 7.9% lower than in 2024.

The accounting loss recorded by the sale of subsidiaries in Argentina, Peru, Ecuador and Uruguay It was the merchandise that almost all affected the outcomes, with a destructive impression of two,269 million. Closing of gross sales the Chilean and Colombian subsidiaries has not been accounted for within the 2025 accounts. The restructuring prices adopted, primarily as a result of ERE accredited on the finish of 2025 and executed this 12 months, which has meant the departure of 5,042 staff with a disbursement of two,177 million. The depreciation of property, akin to these of Virgin Media O2, the joint subsidiary with Liberty within the United Kingdom, represented one other extraordinary destructive merchandise of two,088 million.

With the purpose of clearing the way in which for its new strategic cycle, Telefónica’s administration, led by Marc Murtra, has utilized all of the painful choices within the 2025 accounts, together with a profound assessment of property. This maneuver consists of the exit from unprofitable markets in Latin America, the calculation of ERE bills (2,500 million) and new asset impairments. Along with the provisions for restructuring, changes have been famous within the guide worth of Virgin Media O2 (-585 million), the fiber subsidiary in Germany (100 million), Telefónica Tech (377 million) and the operation in Chile (-174 million). As they’re valuation changes, these expenses don’t have any impression on the group’s money.

Apart from this stuff not attributable to the group’s working enterprise within the first 12 months beneath Murtra’s presidency, revenues grew by 1.5% to 35,120 million euros, in fixed phrases, that’s, with the identical consolidation perimeter. However, if the gross sales of the Latin American subsidiaries are taken under consideration, turnover fell 15% in comparison with 2024, a 12 months by which the group had a turnover of 41,315 million. In the fourth quarter, revenues amounted to 9,174 million, 0.7% extra, and adjusted Ebitda rose to three,198 million, 2% extra.

Similarly, present EBITDA stood at 11,918 million euros for the 12 months as an entire, 1.6% decrease than in 2024, whereas adjusted EBITDA, with out the impression of discontinued companies, grew by 2%. Free money circulate stood at 2,069 million euros, 26% much less, whereas debt was diminished by 337 million to shut 2025 at 26,824 million. The firm diminished its investments by 7.2%, to 4,340 million euros.

Good habits from Spain

Among the subsidiaries, the efficiency of Telefónica Spain stood out, which, for the primary time since 2008, recorded a rise in income, working revenue and money technology. The turnover amounted to 13,012 million euros (+1.7%) and the web working revenue (Ebitda) was 4,691 million (+1.1%) and the working money 2,525 million (+2.3%). At the client degree, it added 21,000 fastened broadband traces, 82,000 cell contract traces and 51,000 tv traces.

The forex impact has penalized the group’s international outcomes, with a destructive impression of 1,100 million in income and 373 million in working revenue, derived primarily from the depreciation in Brazil. After the exit of different Latin American markets, the true is now the one focus of related trade threat. This scenario implies that, in comparative phrases, solely the Spanish market reveals a optimistic evolution in books.

In Brazil, though revenues fell by 1.5% when transformed to euros, the true operation grew by 6.7% in billing and managed to speed up its margins to above 8%. Vivo has closed the 12 months with a internet revenue of 6,168 million of reais (1,010 million euros), which represents a rise of 11.2% in comparison with the earlier 12 months. On the opposite, within the United Kingdom, VMO2 shot up its internet losses to 1,617.7 million kilos sterling (1,852 million euros). In Germany, income fell by 3.8% and Ebitda by 8.2%. The Ebitda margin was 37.1% in Spain, 45% in Brazil, 36.9% within the United Kingdom and 29.8% in Germany.

Telefónica has confirmed the dividend coverage superior within the presentation of the 2026-2030 Strategic Plan and that it’s diminished to 0.15 euros gross per share in comparison with the same old 0.30 euros in earlier years, which might be paid in a single tranche in June 2027. Before, on June 19, 2026, the second tranche of the dividend for the 12 months 2025 might be paid (the primary tranche of 0.15 euros was paid in December 2025).

For 2026, Telefónica foresees year-on-year progress in fixed phrases of income (1.5-2.5%), adjusted Ebitda (1.5-2.5%) and adjusted working money circulate after leases (above 2%), in addition to an investment-to-sales ratio of round 12%, a money circulate of round 3 billion euros and lowering debt in direction of the goal set for 2028.

“We have complied in 2025 and we are prepared to continue doing so in 2026. We have embarked on a path of transformation of the company and today we have before us the first results that make us optimistic and allow us to continue courageously assuming calculated risks. We are experiencing a period of more growth and greater profitability, which allows me to say with satisfaction that Telefónica complies,” mentioned the president of Telefónica, Marc Murtra, in a press release.