Telefónica Met All 2023 Financial Targets

Telefónica ended 2023 with widespread revenue growth in the company’s main markets and meeting all its financial targets. Following these results, in 2024 the Group faces the first full year of its new strategic plan, known as GPS, which stands for Growth, Profitability, and Sustainability, the three levers that will guide management over the next three years (2024-2026) and will focus on growth in free cash flow.

“Telefónica continues to execute its roadmap, not stopping against global macroeconomic uncertainty, with the necessary ambition and determination to complete the operational transformation process launched in 2016. In 2023, Telefónica has met all its financial targets and is resolutely facing the commitments set out in our GPS strategic plan to continue building a new Telefónica and lead the new digital era,” said Telefónica Chairman José María Álvarez-Pallete.

“The company has returned to growth, with higher profitability and in a more sustainable way. Revenues are up and cash flow generation remains robust, allowing us to comfortably cover the dividend of €0.30 per share entirely in cash. In addition, Telefónica continues to increase its social impact through the advanced connectivity provided by our state-of-the-art intelligent networks, ensuring the best service to our customers,” added Álvarez-Pallete.

In 2023, Telefónica posted revenues of €40.652 billion, 1.6% more than in 2022 and the highest volume since 2020. In the fourth quarter, revenues stood at €10.153 billion. The B2B business consolidated as an important growth lever in 2023 with organic revenue growth of 6.3% for the full year. Ordinary OIBDA rose 1.4% in 2023 to €13.121 billion, an increase of 1.6% in the fourth quarter to €1.795 billion.

Confirming the forecasts anticipated by the company, Telefónica España once again recorded organic OIBDA growth (+0.1%) in the last quarter of 2023, something that had not occurred since 2019. Telefónica’s ordinary net income reached €2.369 billion for the full year, 17.1% more than in 2022. Including the provision for the restructuring plan at Telefónica España and other extraordinary items, the net loss recorded in 2023 stood at €892 million.

The company set new targets for 2024, the first full year of the GPS strategic plan, consisting of revenue growth of around 1%, EBITDA growth of between 1% and 2%, and operating cash flow (EBITDAaL-CapEx) of between 1% and 2%. It also foresees a CapEx over revenue figure of up to 13% and an increase in free cash flow of more than 10%. Concerning the FCF growth target for this year, it will be based on the €2.308 billion achieved under the new definition that Telefónica will apply from this year onwards.