The relationship between investment, subscriber growth, and revenue growth for Telefonica in 2024 reflects a strategic balance between capital allocation and business expansion.
The company has slightly reduced its investment, allocating €5,318 million — 1.4 percent less than in 2023 — while maintaining a Capex-to-revenue ratio below 13 percent.
Despite this moderate reduction in investment, Telefonica has successfully expanded its customer base, reaching 390 million subscribers, a 1 percent increase.
This marginal growth in subscriber base of Telefonica has been driven by the company’s leadership in both 5G and fiber technology, with its ultra-broadband network now covering 181.5 million premises, of which 84.6 million are fiber connections, marking a 14 percent increase.
Telefonica’s extensive infrastructure has facilitated high 5G penetration, with significant coverage in key markets — 91 percent in Spain, 97 percent in Germany, 61 percent in Brazil, and 75 percent in the UK.
The strong customer base and technological leadership have translated into revenue growth, with total revenue increasing by 1.6 percent to €41.315 billion in 2024. This growth was particularly evident in the fourth quarter, where revenue rose by 5.4 percent, supported by a 6.5 percent increase in residential revenues and a 10 percent rise in the business segment. For the full year, residential revenue grew by 2.5 percent, and business revenue saw a 4.8 percent increase.
In Spain, Telefonica experienced simultaneous growth across its main customer segments for the first time since 2018, accompanied by a reduction in churn to 0.9 percent, the lowest since 2013. Spanish revenue grew by 1.3 percent in the fourth quarter and by 1.1 percent for the full year, reaching €12,791 million.
Meanwhile, in Brazil, the company maintained market leadership in mobile services, with stable customer growth, rising ARPU, and low churn. Brazil’s revenue and adjusted EBITDA both grew by over 7 percent in local currency, with revenue reaching €9,618 million and EBITDA at €4,116 million.
In Germany, Telefonica saw strong operational performance, with revenue at €8,492 million and adjusted EBITDA increasing by 4.3 percent to €2,764 million.
The UK also expanded its fixed network, passing 1.3 million additional premises in 2024, reaching a total of 18.3 million.
Further supporting revenue growth, Telefonica Tech’s annual revenues surged by 10 percent to €2.065 million, while Telefonica Infra closed the year with 25 million premises passed with FTTH.
Additionally, Telxius, the group’s submarine cable unit, demonstrated strong profitability with an EBITDA margin of 48 percent.
Telefonica’s ability to manage investment while sustaining subscriber growth has been instrumental in driving revenue expansion across its key markets.
Baburajan Kizhakedath
