Telefonica Net Income Soars in 1Q24

In the first quarter earnings announcement, Telefonica said its net income rose 79% to €532 million. At the same time, revenue was broadly flat at €10.1 billion.

Net debt grew 7.7% to €28.5 billion, mainly due to the acquisition of an additional stake in its unit in Germany. EBITDA increased 1.9% to €3.2 billion. Free cash flow, a key metric for its new Growth, Profitability, and Sustainability strategic plan, was negative at €41 million.

The new strategic plan was unveiled in November 2023, with the company targeting an increase of 10% in free cash flow, in addition to a 2% rise in core earnings per annum until 2026. Telefonica CEO Jose Maria Alvarez-Pallete pointed to initial success in implementing its new strategic plan through to 2026.

Pallete said Telefonica had started the year with a solid strengthening of its business, supported by the deployment of a new roadmap and its strategic plan, pointing to improved revenue and commercial activity. In addition to the numbers, Telefonica announced it has signed a non-binding mobile network wholesale agreement with Romanian operator Digi Communications, with a final agreement to be announced in the next few weeks.