Telefonica CEO Jose Maria Alvarez-Pallete highlighted the initial success of implementing the company’s new strategic plan through to 2026. In the first quarter of the year, the operator saw a 79 per cent increase in net income, reaching €532 million. Although revenue remained relatively stable at €10.1 billion, net debt rose by 7.7 per cent to €28.5 billion, largely due to the acquisition of a greater stake in its German unit. EBITDA also grew by 1.9 per cent to €3.2 billion. However, free cash flow, a crucial metric for its new Growth, Profitability, and Sustainability plan, was negative at €41 million.
The new strategic plan, unveiled in November 2023, aims for a 10 per cent increase in free cash flow and a 2 per cent rise in core earnings per year until 2026. Pallete noted that Telefonica had a strong start to the year, with the business reinforcing itself thanks to the implementation of a new roadmap and strategic plan, leading to improved revenue and commercial activity.
Telefonica also announced a non-binding mobile network wholesale agreement with Romanian operator Digi Communications. A final agreement is expected to be disclosed in the coming weeks as their current deal is set to expire in September 2026.