Telefonica Takes Hit on LatAm Politics

Telefonica’s Q1 performance took a hit due to losses relating to exits in Latin America. The Spain-based operator suffered a net loss of €411 million during the quarter, primarily due to the impact of divestment moves in Chile, Colombia, and, most recently, the sale of its Mexico assets.

In the same quarter last year, it suffered a €1.3 billion loss, reflecting writedowns on assets sold in Peru and Argentina. Adjusted net profit from continuing operations hit €482 million, down 21.5% year-on-year. Revenue for the period was flat at €8.1 billion, with sales from operations in Brazil and Spain increasing 7.4% and 2% respectively. This was offset by struggles in Germany, with revenue slipping 8.6% due to the migration of 1&1 customers and weakness in handset sales.

Telefonica boss Marc Murtra outlined a five-year strategic plan in November 2025, pledging to simplify its operating model and target up to €3 billion in savings by 2030. The company said it had made progress with the ‘Transform & Grow’ strategic plan during the quarter by slashing net financial debt by nearly €1.5 billion, which now stands at €25.3 billion.

CCO Emilio Gayo said that the numbers reflect continued and consistent execution based on our strong business fundamentals. He continued: “This is combined with our financial discipline, having reduced the net debt significantly in the quarter.” The quarterly figures put the company on track to meet its financial targets for 2026, with expectations of full-year constant revenue growth of 1.5% to 2%.