Telefonica Reported Loss in 1Q25

Telefonica was hit with a loss of €1.3 billion after writing down the value of assets sold in Latin America. However, COO Emilio Gayo is confident results will improve throughout the year as it prepares for a company-wide strategic review.

In its earnings statement, Telefonica reported writdowns amounting to €1.2 billion from Argentina and €500 million in Peru. Net income from continuing operations reached €427 million, a 26% decrease. Revenue dropped 2.9% to €9.2 billion. The company, however, pointed to strength around its core businesses, with growth in Spain, above-inflation growth in Brazil, and operational improvement in Germany.

It also said it had successfully reduced exposure in Latin America during the quarter, a long-standing goal, after the sale of its stake in Argentina and an agreement to sell operations in Colombia. Press rumours continue to circulate that the company is also edging towards a sale of its Chile unit.

CEO Marc Murtra, who took the helm earlier this year, has revealed plans to conduct a strategic review of the company, which looks likely to focus on Europe, technology excellence, and simplifying the operator. Gayo, who commented in the statement, said the first quarter results met expectations and that its numbers would improve throughout the year in line with targets.