Telefonica has reported revenues of €8.958 billion in the third quarter of 2025, down 1.6 percent year-on-year, alongside a net income of €271 million from operations. Services revenue reached €8.164 billion, down 1.4 percent, reflecting competitive pressures in key markets.
Revenue Performance Across Segments
B2C revenue declined 1.6 percent to €5.321 billion, while B2B revenue grew 4.2 percent to €2.020 billion. Wholesale revenue rose 8.0 percent to €1.616 billion, driven by strong network performance and service offerings.
By geography, Telefonica Spain posted €3.233 billion in revenue, up 1.6 percent, and Brazil delivered €2.349 billion, up 1.8 percent. Germany faced a decline of 6.6 percent to €1.96 billion, while HispAm revenues fell 9.8 percent to €1.017 billion, following the ongoing divestment strategy.
Subscriber Base and Network Growth
Telefonica closed September 2025 with 350.2 million connections, slightly down 0.1 percent. Contract customers reached 115.711 million (-3.2 percent), while Pay TV subscribers totaled 8.715 million (-2 percent). Wholesale customers declined 5.2 percent to 28.826 million.
Spain achieved its highest fixed broadband growth in nine years with a 2.4 percent increase. FTTH coverage reached 82.6 million premises (+9 percent), and 5G coverage rose to 78 percent in key markets (+8 percentage points). Across key markets, 5G coverage now stands at 94 percent in Spain, 98 percent in Germany, 66 percent in Brazil, and 80 percent in the UK.
Capital Expenditure and Fibre Leadership
Telefonica invested €1.167 billion in Capex during Q3, down 7 percent, with a year-to-date Capex-to-sales ratio of 11.8 percent. Spain accounted for €372 million, Brazil €410 million, Germany €257 million, and HispAm €88 million.
The company completed its copper network switch-off in Spain and reinforced its position as a global fibre leader with 172.1 million ultra-broadband premises passed, including 82.6 million FTTH premises (+9 percent). FibreCos contributed significantly with 29.4 million PPs (+10 percent), representing one-third of total growth in the first nine months.
Strategic Focus: Divestments, Digital Services, and Sustainability
Telefonica continued its divestment strategy in HispAm, completing sales in Uruguay and Ecuador, with Colombia pending. The company focuses on network quality, FTTH and 5G expansion, digital services, profitability, and debt management.
Sustainability remains a priority. Telefonica aims to cover electricity needs through renewable PPAs, reaching 70 percent in Germany by 2026. Spain’s modernization of air conditioning in 15 central offices under the Energy as a Service model is projected to save ~45 GWh annually. The company also targets a 95 percent reduction in energy consumption per unit of traffic by 2030 and net zero emissions across its value chain by 2040.
Telefonica’s Q3 2025 results highlight the resilience of its B2B and wholesale business, leadership in fibre and 5G, and strong commitment to digital transformation and sustainability, positioning the company for long-term growth despite challenges in consumer segments.
Baburajan Kizhakedath
