Telefónica has announced its financial results for the first quarter of 2025, revealing substantial impacts from recent divestitures, particularly the sale of its businesses in Argentina and Peru.

The divestitures have resulted in estimated net losses of €1.304 billion from January through March.

In particular, the sale of Telefónica's subsidiary in Argentina on February 24 led to a loss of €1.2 billion, primarily due to the reclassification of negative accumulated conversion differences related to the subsidiary.

This information was outlined in documentation submitted to the Comisión Nacional del Mercado de Valores (CNMV).

Additionally, the company incurred losses of €500 million from its subsidiary in Peru, which was sold on April 13 for approximately 3.7 million Peruvian soles (around €900,000).

This brings the total losses from both operations to €1.731 billion, partially offset by a profit of €427 million from Telefónica's continuing business operations.

To provide a clearer comparison, Telefónica has classified these sales as discontinued operations for the first quarter of 2025 and has restated the results for 2024 accordingly, as indicated in its documentation presented to the CNMV.

Following this adjustment, the net profit from continuing operations—those remaining within the group—amounted to €427 million as of March, reflecting a decline of 26% compared to the same period last year.

The operating result (EBITDA) reached €3.014 billion, representing a 4.2% decrease, largely due to currency impacts contributing 4.4 percentage points to the decline.

Total revenues of €9.221 billion decreased by 2.9%.

Telefónica has maintained its financial targets for the fiscal year, projecting year-on-year organic growth in revenues and EBITDA.

The company aims to keep investments relative to sales below 12.5%, expects cash generation to be similar to that of 2024, and seeks to reduce leverage.

The divestitures in Latin America continue, including the pending sale of its Colombian subsidiary for approximately €368 million.

The company confirmed a dividend of €0.30 per share in cash for 2025, payable in two installments: the first on December 18 (at €0.15) and the second in June 2026 (also €0.15).

In addition, the second installment of the 2024 dividend, which is also €0.15 per share, will be distributed on June 19.

A spokesperson from Telefónica stated that the first-quarter results meet the company's expectations, while free cash flow reflects usual seasonality.

The group's overall results are expected to improve throughout the year in line with forecasts for 2025. Details of a strategic review currently underway will be communicated in the second half of the year.

Geographically, Telefónica España reported organic revenue and EBITDA growth of 1.7% and 1%, respectively.

Telefónica Brasil's revenues increased above inflation by 6.2%, with EBITDA rising 8%.

Telefónica Germany reported operational improvements attributable to a robust commercial performance, achieving a 4.8% increase in operational cash.

Capital expenditure during the January to March period was €938 million, down 6.7% year-on-year.

Meanwhile, net financial debt decreased by €112 million from December, standing at €27.049 billion at the end of the quarter.

At the close of the first quarter, Telefónica reported a total of 354 million accesses, including a 9% increase in fiber customers and a 1% increase in mobile contract customers.

Operationally, the company finished March with 80 million fiber units (+13%), contributing to a total of 170.9 million ultra-broadband network deployments.

5G mobile coverage reached 92% of the population in Spain, 98% in Germany, 62% in Brazil, and 77% in the United Kingdom.