Telefonica today unveiled its new five-year strategic plan, Transform & Grow, during its Capital Markets Day. Designed to drive growth, create long-term value, and strengthen leadership across Spain, Germany, the UK, and Brazil, the plan focuses on technological, operational, and commercial evolution. Telefonica aims to deliver the best digital experience to its customers while positioning itself as a world-class European operator with profitable scale.
Here are the 10 key points of Telefonica’s Transform & Grow strategy:
Deliver the Best-in-Class Customer Experience
Telefonica plans to enhance network performance and customer care across all channels, leveraging artificial intelligence to strengthen service quality and customer satisfaction.
Expand the B2C Offering
The company will reinforce convergence in Spain and Brazil, expand it in Germany and the UK, and grow ecosystem services to increase B2C revenues and household presence.
Scale the B2B and Public Administration Business
Telefonica aims to modernize communication services, accelerate growth in digital services, and strengthen local partnerships and global business units in key markets.
Evolve Technological Capabilities
Investments will focus on upgrading fixed and mobile networks, IT systems, and innovation initiatives that enhance product performance and customer value.
Simplify the Operating Model
The company will streamline operations by granting greater autonomy to countries and global units, focusing on roles that drive critical value creation.
Develop Talent Across Markets
Telefonica will attract, retain, and nurture top talent, fostering a culture centered on impact, execution, and innovation.
Achieve Operational Efficiency and Cost Savings
The plan targets gross savings of up to €2.3 billion by 2028 and €3 billion by 2030 through technological and operational excellence, digital transformation, streamlined processes, and network asset optimization.
Financial Growth and Stability
The plan aims for revenue growth of 1.5–2.5 percent CAGR from 2025–2028, accelerating to 2.5–3.5 percent by 2030, alongside similar EBITDA growth, de-risked free cash flow, and maintenance of investment-grade credit ratings.
Dividend Policy and Shareholder Value
Telefonica’s dividend strategy is linked to free cash flow, with 2025 confirmed at €0.30 per share and future dividends targeting 40–60 percent of base FCF, payable annually.
Commitment to European Strategic Autonomy
Telefonica emphasizes Europe’s technological independence, highlighting potential consolidation opportunities that could generate synergies of €18–22 billion and further strengthen investment, innovation, and sector resilience.
Transform & Grow underscores Telefonica’s commitment to efficiency, innovation, and sustainable growth, positioning the company to navigate a rapidly evolving telecom landscape while maximizing shareholder and customer value.
Telefonica continued its divestment process in HispAm, completing sales of Uruguay and Ecuador and earlier disposals in Argentina and Peru, with Colombia pending. The company emphasizes market leadership through network quality, FTTH and 5G expansion, and digital services, while maintaining focus on growth, profitability, and debt management.
Baburajan Kizhakedath
