Telefonica said its revenue reached €9,221 million in the first-quarter of 2025, representing a 1.3 percent organic growth driven by strong performance in both B2C (+5.4 percent) and B2B (+1.8 percent) segments.
However, reported revenue of Telefonica declined by 2.9 percent due to a negative exchange rate impact of 4.1 percentage points. The core markets demonstrated robust performance, with Telefonica Spain achieving organic revenue growth of 1.7 percent and Telefonica Brasil outpacing inflation.
Adjusted EBITDA rose by 0.6 percent organically but fell by 4.2 percent in reported terms due to currency effects.
Emilio Gayo, COO of Telefonica, stated that the first-quarter results align with expectations, with free cash flow reflecting typical seasonal patterns. He anticipates improved performance throughout the year, consistent with the Group’s 2025 forecasts. Emilio Gayo also mentioned that the conclusions of the ongoing strategic review will be presented in the second half of the year.
Capex
Telefonica’s capital expenditure for Q1 amounted to €938 million, reflecting a 2.8 percent organic decline and a 6.7 percent drop in reported terms. The Capex-to-sales ratio was 10.1 percent. The reduction in Capex is part of a strategic focus on optimizing investments while expanding fibre and 5G networks. The company continues to emphasize network efficiency and targeted spending to sustain its competitive edge in key markets.
Subscriber Growth
Telefonica ended the first quarter with 354 million accesses, driven by a 9 percent increase in FTTH and a 1 percent rise in mobile contract customers. The company continues to expand its fibre network, reaching 80 million FTTH premises (+13 percent), and maintains a strong position in 5G, with 75 percent average mobile coverage in key markets. NPS reached a record 35 points, indicating higher customer satisfaction and loyalty.
Strategy
Telefonica’s strategy focuses on consolidating its market leadership in fibre and 5G while optimizing investment and reducing costs. The company emphasizes digital transformation in core markets, leveraging its advanced network infrastructure to drive growth in B2C and B2B segments. Additionally, strategic divestments in non-core assets and disciplined capital allocation are aimed at improving profitability and mitigating currency risks.
Baburajan Kizhakedath
