Telefónica Q1 2025 Financial Results PDF Free Download
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TABLEOFCONTENTS
Telefónica
Highlights 3
Operational,infrastructureandITperformance 6
Financialperformance 7
Sustainabilityperformance 9
TelefónicaEspaña 10
TelefónicaBrasil 11
TelefónicaDeutschland 12
TelefónicaTech 13
TelefónicaInfra 14
TelefónicaHispam 15
JointVenture,VMO2 17
Appendix
Selectedconsolidatedfinancialstatements 18
Alternativeperformancemeasures 21
Disclaimer 24
ThefinancialinformationrelatedtoJanuary-March2025containedinthisdocumenthasbeenpreparedunderInternationalFinancial
ReportingStandards(IFRS),asadoptedbytheEuropeanUnion,whichdonotdifferforthepurposesoftheTelefónicaGroup,fromIFRS
as issued by the International Accounting Standards Board (IASB). The management of the Group uses a series of APM in its
decision-making,inadditiontothoseexpresslydefinedintheIFRS,astheyprovideadditionalinformationusefultoassesstheGroup’s
performance,solvencyandliquidity.Thesemeasuresshouldnotbeviewedseparatelyorasasubstituteforthemeasurespresented
accordingtotheIFRS(seetheAppendix“Alternativeperformancemeasures”).
Telefónica’s management model, regional and integrated, means that the legal structure of the companies is not relevant for the
release of Group financial information, and therefore, the operating results of each of these business units are presented
independently, regardless of their legal structure. For the purpose of presenting information on a business unit basis, revenue and
expenses arising from invoicing among companies within Telefónica’s perimeter of consolidation for the use of the brand and
managementcontractshavebeenexcludedfromtheoperatingresultsforeachbusinessunit.Thisbreakdownoftheresultsdoesnot
affectTelefónica’sconsolidatedearnings.
The English language translation of the consolidated financial results originally issued in Spanish has been prepared solely for the
convenienceofEnglishspeakingreaders.Despitealltheeffortsdevotedtothistranslation,certainomissionsorapproximationsmay
subsist. Telefónica, its representatives and employees decline all responsibility in this regard. In the event of a discrepancy, the
Spanish-languageversionprevails.
Linktodetailedfinancialandoperationaldata:clickhere.
Resultspresentation
Themanagementwillhostapresentation(clickhere)todiscusstheresultsat10:00amCETon14thMay2025.
Formoreinformation,pleasecontact:
Isabel Beltrán (i.beltran@telefonica.com); Torsten Achtmann (torsten.achtmann@telefonica.com); ir@telefonica.com;
Phone:+34914828700
https://www.telefonica.com/en/shareholders-investors/
2
TelefónicaQ12025FinancialResults 14thMay2025
Operationalprogress
Highlights
•Customerfocus,nextgenerationnetworks(y-o-y)
◦354maccesses(+9%inFTTH,+1%incontractmobile)
◦Moresatisfiedandengagedcustomers(NPShitsnewhighto35score)
◦Fibrecontinuedexpansionto80.0mPPs(+13%),75%5Gcoverageincoremarkets(+11p.p.)
•Strengtheningleadershipacrosscoreunits(y-o-yorganic)
◦Spain;positivenetadds,growthacceleration;revenue+1.7%(+0.4p.p.q-o-q),EBITDAaL+1.0%(+0.9p.p.)
◦Brazilgrowsaboveinflation.Revenue+6.2%,EBITDA+8.0%(margin+0.7p.p.),EBITDAaL-CapExacceleratesto
+14.5%.Leadersinmobile(qualityandcoverage)andfibre(greatestcapillarity)
◦Operating leverage improves in Germany (EBITDAaL-CapEx +4.8%, margin +0.8 p.p.). Net adds momentum
continueinO2mobileandgoodcustomerdemandinfixed
•GroupFinancials(y-o-yorganic)
◦Revenue+1.3%supportedbyservicerevenue(+1.5%).B2BandB2Cup+5.4%and1.8%respectively
◦Profitabilitygrowth;EBITDA+0.6%andEBITDAaL-CapEx+0.4%
◦EBITDAaL-CapEximprovesinSpain(+2.0%),Brazil(+14.5%)andGermany(+4.8%)
◦Hispamdrag(detracts1.0p.p.toEBITDAand3.4p.p.toEBITDAaL-CapEx),morestepstakentoreduceexposure
•Ontracktofulfil2025guidance
◦Q1resultsalignedwithinternalexpectations
◦FCFaffectedbyFXinoperatingFCFandseasonalityinWCandleases.Temporaluptickinleverage
•UpdateonstrategicreviewinH225
•Wecontinueexecuting
◦SaleofT.ArgentinatoTelecomArgentinainFeb-25
◦SaleofallsharesinT.Colombia(67.5%)inMar-25toMillicom,subjecttocertainclosingconditions
◦Saleof~99.3%ofsharesofTelefonicadelPerúinApril-25.Inaddition,TelefónicaHispamhassoldtothesame
buyerthefinancialcreditagainstTelefónicadelPerúfromthecreditfacilityagreementdatedFeb-25
–––––––––––––––––––––––––––––––––––––––––––––––––
Unlessstatedotherwise,CapExexcludesspectrum.
3
EmilioGayo,COOTelefónica
“Whilst we embark into our strategic review, Q1 results reflect continued execution. We have a more engaged and
satisfiedcustomerbase,leveragingonourenrichedcommercialpropositionsandleadershipinfrastructures.Wemaintain
solidfundamentalsandimprovedoperationalperformance,deliveringorganicgrowthatGrouplevelinrevenue,EBITDA
andEBITDAaL-CapEx.Inparallel,wecontinuetakingrelevantstepsinreducingourexposuretoHispam,asreflectedwith
therecentsaleofTelefónicaArgentinaandTelefónicadelPerúandthesigningofthesaleofTelefónicaColombia.
Our performance in Q1 is aligned with expectations, while FCF reflects regular seasonality. Group performance should
improvethroughouttheyear,beingontracktomeetour2025guidance.DuringH225wewillpresentandcommunicate
theconclusionsfromthestrategicreviewweareconducting."
Outlook
2025guidance(organic1)
•Revenue:organicgrowthy-o-y(Q125+1.3%)
•EBITDA:organicgrowthy-o-y(Q125+0.6%)
•EBITDAaL-CapEx:organicgrowthy-o-y(Q125+0.4%)
•CapEx/Sales:<12.5%organic(Q12510.1%)
•FCF:similarto2024(FCFcontinuingoperationsQ125-€205m)
•Leveragereduction(Mar-252.67x)
Shareholderremunerationconfirmedfor2025
•Secondtrancheof2024dividendof€0.15pershareincashtobepaidthe19thofJune2025
•2025dividendof€0.30pershareincashwillbepaidthe18thofDecember2025(€0.15)andJune2026(€0.15)
–––––––––––––––––––––––––––––––––––––––––––––––––
(1) Criteria for 2025 guidance: organic, assumes constant FX (average in 2024), excludes the contribution to growth from Venezuela, considers constant perimeter of
consolidationanddoesnotincluderestructuringcosts,significantcapitalgains/lossesfromthesaleofcompanies,goodwillimpairmentchargesandmaterialnon-ordinary
impacts.CapExex-spectrum.ReportedFCFfromcontinuingoperationsexcludesspectrumpayments.
4
TelefónicaGroupMainKPIs
Q125
(€m) y-o-y%Chg y-o-y%
OrgChg
Revenue 9,221 (2.9) 1.3
EBITDA* 3,014 (4.2) 0.6
EBITDAaL*-CapEx 1,412 (4.9) 0.4
CapEx/Salesorganic 10.1% (0.4)p.p.
FCFfromcontinuingoperations (205) n.s.
NetFinancialDebt 27,049 (4.9)
NetIncomefromcontinuingoperations 427 (26.0)
Q125(€m) y-o-y%Chg
y-o-y%
OrgChg
Revenue 9,221 (2.9) 1.3
TelefónicaEspaña 3,170 1.7 1.7
TelefónicaBrasil 2,337 (7.2) 6.2
TelefónicaDeutschland 2,056 (2.0) (2.0)
TelefónicaHispam 1,245 (8.6) (3.4)
Othercompanies&eliminations 413 3.4 1.9
EBITDA* 3,014 (4.2) 0.6
TelefónicaEspaña 1,128 1.0 1.0
TelefónicaBrasil 964 (5.7) 8.0
TelefónicaDeutschland 640 (2.0) (2.0)
TelefónicaHispam 258 (16.0) (9.8)
Othercompanies&eliminations 25 (46.1) (61.5)
EBITDAaL* 2,350 (5.6) (0.9)
TelefónicaEspaña 968 1.0 1.0
TelefónicaBrasil 748 (5.7) 8.0
TelefónicaDeutschland 451 (4.0) (4.0)
TelefónicaHispam 159 (28.9) (21.8)
Othercompanies&eliminations 24 (46.2) (61.9)
CapEx 938 (6.7) (2.8)
TelefónicaEspaña 334 (0.8) (0.8)
TelefónicaBrasil 303 (13.0) (0.3)
TelefónicaDeutschland 203 (12.9) (12.9)
TelefónicaHispam 65 12.3 4.1
Othercompanies&eliminations 32 14.5 12.9
Spectrum 29 (51.5) (87.0)
EBITDAaL*-CapEx 1,412 (4.9) 0.4
TelefónicaEspaña 634 2.0 2.0
TelefónicaBrasil 444 (0.1) 14.5
TelefónicaDeutschland 247 4.8 4.8
TelefónicaHispam 93 (43.3) (30.9)
Othercompanies&eliminations (8) c.s. c.s.
Mar25
(thousands)
y-o-y%Chg
TotalAccesses 353,519 0.3
o/wFTTH 15,794 8.8
o/wContract 120,582 0.9
o/wPayTV 8,779 (1.2)
o/wWholesale 28,525 7.9
–––––––––––––––––––––––––––––––––––––––––––––––––
(*)Adjusted.Thereconciliationbetweenreported,adjusted,andorganicfiguresisincludedintheSelectedFinancialdatapublishedfortheperiod.
5
Operational,infrastructureandITperformance
Total accesses grew 0.3% y-o-y to 354m as of March-25, with FTTH and mobile contract growing 9% and 1%,
respectively.
Telefónica continued making steady progress in its Hyper-Automation strategy through the Autonomous Network
Journey(ANJ)program(evolutionofnetworkstowarddisaggregated,software-based,andAI-poweredarchitectures).
Theprogramisenablingnetworkstobeconfigured,monitored,maintained,andprotectedautonomously.Inparallel,
progressisnoticeableinimplementingtheNetworksandSystemsdatastrategytofeedAImodelsresultingintogreater
operationalefficiencyandimprovedpredictivecapacity.
As an example, the Fractal project in Brazil, is transforming network design and planning, eliminating the need for
manualinventoryqueries,andacceleratingdeploymenttimes(fromanaverageof60daystolessthanaweek).This
positionedtheCo.asthefirstoperationinthegrouptoachieveLevel4autonomyintransmissionnetworkcreationand
planning,accordingtotheTMForumstandard.
Other initiatives to highlight are in Spain, a solution to identify and correct network interruptions ensuring optimal
quality; and in Germany, an advanced AI-based algorithm for automatically identify errors in networks and predict
failuresincriticalservices.
Furthermore,asannouncedatMobileWorldCongress2025,Telefónicaopeneda dedicatedCentreofExcellencefor
Quantum Technologies, focused on practical applications in cybersecurity and network optimization. In collaboration
withglobaltechnologypartnersthisCentrewillacceleratethedevelopmentofdisruptivesolutionsthatstrengthendata
encryptionandimprovetheenergyefficiencyofthenetworks.
Likewise,theOpen Gateway project ledbyTelefónicaand the GSMA continued standardisingtheaccessto telecom
networks functions through open APIs. It currently reaches 284 operators (78% of global mobile connections), 257
commercialAPIslaunchedin27markets,withthecompanyAdunaasavehicletoscaleAPIcommercializationglobally.
At the MWC 25 several agreements with leading technology firms were announced strengthening the application of
OpenGatewayAPIs;i)TelefónicaandTikTokextendthescopeoftheircollaborationtoincludeEuropeandthenew'Age
Verification'API;ii)CabifyannouncedthatitsappwillusetheNumberVerificationAPIduringtheregistrationprocess;
iii)GoogleCloudwillintegrateNumberVerificationAPIwithinthecapabilitiesofGoogleFirebase,aplatformwithover3
millionactivedevelopers.
Telefónicaleadscopperswitch-offinEuropewiththeswitched-offoftheretailcoppernetworkinSpainfollowingthe
closure of more than 90% of the initial 8,532 COs (7,820 closures until Mar-25). Due to regulatory issues, remaining
facilities(~700)willbeclosedbyMay-25.Telefónicaisthegloballeaderinfibre,offeringthebestcarriersolutionforthe
next 50 years (XGS-PON ready), covering by Mar-25 170.9m UBB PPs, +4% y-o-y. Out of these, 80.0m are FTTH PPs
(+13%y-o-y)including28.6mPPsofourFibreCos(+17%y-o-y).Assuch,totalFTTHPPincreasedinQ125by1.5mPPs,
37%ofthemrolledoutthroughFibreCos.
AsofMarch,5Gcoveragereached92%inSpain,98%inGermany,62%inBraziland77%intheUK.T.Españareached
2,000townswithhigh-performance5G(3,500MHzband),makingittheleadingmobilenetworkinthecountry.Besides
that,5GStandAlonecorehasalreadybeenfullydeployedinourcoremarkets.
ThankstoinitiativessuchasRANreductionandswitch-offsinlegacy,wehavebeenabletoreduceenergyconsumption
atGroupleveldespitethestrongtrafficincrease,aimingthegoalofreducingtheratioofconsumptionperunitoftraffic
by95%by2030.Allthesearekeytoachievethegoalofnetzeroemissionsby2040acrossthevaluechain.
6
Financialperformance
IncomeStatement
GroupconsolidatedresultsincludethedeconsolidationofTelefónicaArgentinasinceFebruary24,2025,andTelefónica
Peru’sassets andliabilities havebeenreclassified asheld forsaleat March31, 2025afteritssaleon April13,2025.
AccordingtoIFRS,TelefónicaArgentinaandTelefónicadelPerúhavebeenreportedasdiscontinuedoperationswithin
theTelefónicaGroupand2024resultshavebeenrevisedaccordingly.
Q125wasaffectedbythey-o-ydepreciationoftheBrazilianreaisvs.theeuro.FXmovesnegativeimpactwas€388min
revenueand€138minEBITDA*.AtFCFfromcontinuingoperationswas€21m.Atnetdebtwasalsonegative(€242m,
€308matnetdebtplusleases)duetotheBrazilianreaisappreciationsinceDec-24.
Revenuedecreased2.9%y-o-yto€9,221minQ125,withFXmovesdetracting4.1p.p.Inorganicterms,increasedby
1.3%supportedby1.5%y-o-ygrowthinservicerevenue.Handsetsaleswereflatat-0.4%.
B2Crevenueincreased1.8%y-o-yinQ125(€5,580m,61%oftotal)onthebackoftop-tierconnectivityandarelevant
digitalproductrangeincludedinourvaluepropositionandsupportedbystrongbrands.
B2Brevenuesteadilyadvancedby5.4%y-o-yinQ125(€2,043m,22%oftotal),followingastrongendof2024,with
CorporateandSMEsegmentsgrowingat5.0%y-o-yand6.5%y-o-yrespectively.Coremarketsperformancewasvery
solidandITrevenuecontinuedtodeliverdouble-digity-o-ygrowth.
Wholesale & Partners and Others revenue declined 5.1% y-o-y in Q1 25 (€1,598m, 17% of total) reflecting the
headwinds from B2P transformation in Germany that had been anticipated. Nevertheless, Telefónica secured in
previous months well-established long-term wholesale contracts in Spain, Germany, and the UK that enhanced
wholesalesustainability.
Otherincome(€380minQ125)includeda€96mcapitalgainrelatedwiththesaleof20%stakeinNabiax(datacentre
business).Inorganicterms,increased6.1%y-o-y.
Operatingexpensesdecreased1.2%y-o-yto€6,535minQ125,andwereaffectedrestructuringcosts(€52mmainlyin
OtherCo.andEliminations)andFXmoves.Inorganicterms,OpExincreased1.9%y-o-yonhighersuppliercosts.
Impairmentsandlossesondisposalofassets:€8minQ125.
Earningsbeforedepreciationandamortisation(EBITDA)*fell4.2%y-o-yinQ125to€3,014m,with4.4p.p.ofFXdrag.
Inorganicterms,grew0.6%;growthinBrazilandSpainoffsetalowerHispam,GermanyandOtherCo.&Eliminations.
EBITDA*marginat32.7%inQ125(-0.2p.p.y-o-yorganic).
EBITDAaL*fell5.6%y-o-yto€2,350minQ125.Inorganicterms,slightlydecreasedby0.9%.
Depreciationandamortisationfell3.4%y-o-yto€1,949minQ125impactedbytheFXmoves.
Shareofprofitofinvestmentsaccountedforbytheequitymethodamountedto-€113minQ125,comparedto+€45m
inQ124,mainlyduetolowerresultsofVMO2,includingthechangeinfairvalueofderivatives.
Netfinancialexpensesdeclined16.1%y-o-yto€361minQ125mainlyduetocostcontainmentinEuropeandapositive
evolutioninBrazilandHispam.
Corporatetaxexpensesincreasedto€174minQ125(€136minQ124)mainlyexplainedbyDTAsreversalinGermany.
Profitattributabletominoritiesfromcontinuingoperations:€34minQ125,inlinevs.Q124of€31m.
Netincomefromcontinuingoperationsamountedto€427minQ125,withearningspershareof€0.06,affectedby
+€94mcapitalgains,-€39mrestructuringand-€172mofotherimpacts.Adjusted,decreased18.7%y-o-yto€544m(EPS
-20.9%to€0.08).
Profit from discontinued operations of -€1,732m in Q1 25, included -€1.2bn from Argentina (mainly -€1.1bn
accumulatednegativetranslationdifferences)and-€0.5bnfromPeru(mainlytheimpactfromtheloangranted,capital
lossfromthesaleandcompanyresults).Minoritiesfromdiscontinuedoperationswas-€1minQ125.Thisresultedin
netincomefromdiscontinuedoperationsof-€1,731m(EPSof-€0.31).
–––––––––––––––––––––––––––––––––––––––––––––––––
(*)Adjusted.Thereconciliationbetweenreported,adjusted,andorganicfiguresisincludedintheSelectedFinancialdatapublishedfortheperiod.
7
FreeCashFlow
EBITDA*-CapEx declined -3.0% y-o-y to €2,077m, EBITDAaL*-CapEx-4.9% to €1,412m, affected by the FX impact. In
organicterms,grew+2.3%and+0.4%respectively.
CapExdeclined6.7%y-o-yto€938m,down2.8%y-o-yorganicinQ125.Spectrumaccruedwas€29m(Hispam)while
paymentsamountedto€78m(€30mSpain,€27mHispam,€21mGermany).CapEx/Salesorganicfell0.4p.p.to10.1%.
Working capital consumed €546m in Q1 25, due to seasonality impacts (mainly CapEx and personnel payments).
Workingcapitalconsumptionwas€75mhighery-o-ymainlyonQ124positiveeffectofprepaymentsmadein2023.
Interestpaymentswere up12.7%y-o-y to€498mmainly duetoa different calendarisation(higherconcentration of
paymentsinEuropeinQ125vs.Q124).Theeffectivecostofdebtrelatedinterestpayments(L12M)decreasedto3.49%
asofMar-25(3.64%inMar-24).
Dividendsreceivedwere€7mand€8mpaidtominorityshareholdersinQ125(€8mand€7minQ124,respectively).
Tax payments remained virtually stable y-o-y (€170m in Q1 25, €158m in Q1 24), while lease principal and interest
paymentsincreased11.3%y-o-yto€838minQ125mainlyduetoseasonalimpacts.
Pre-retirementcommitmentswereinliney-o-y(€230minQ125,€234minQ124)andtherewerenohybridcoupon
paymentsinQ125(€65minQ124).
Thus,freecashflowfromcontinuingoperationsreached-€205minQ125(-€13minQ124).
Freecashflowfromdiscontinuedoperations:-€153minQ125(-€11minQ124)includedtheArgentinaandPeruFCF.
Totalfreecashflowamountedto-€358minQ125(-€25minQ124).
Fundingandfinancing
Netfinancialdebtdecreasedby€112minQ125,to€27,049masofMar-25,duetothesaleofT.Argentinaof€0.9bn
and the sale of 20% of Nabiax of €0.2bn, partially offset by free cash flow seasonality (-€436m from continued and
discontinuedoperationsincluding spectrumpayments),shareholderremunerationof€202mandothernet factorsof
€148m(mainlyduetotheBRLappreciationsinceDec-24).
Leaseliabilitiesamounted€8,010mas ofMar-25, down3.2%inQ125mainlyduetohigherprincipalpaymentsthan
ROUadditions.Netfinancialdebtincludingleaseliabilitiesamountedto€35,060masofMar-25.
InQ125,TelefónicaGroupraisedlongtermfinancingby€6,780mandVMO2raised€485mequivalent.
FinancingactivitiesinQ125included:
• In Jan-25, Telefónica completed the refinancing of its main syndicated facility of €5,500m and extended its
maturityto5years,withtwoannualextensionoption,uptoamaximummaturityof7years(Jan-32).Inaddition,
Telefónicasuccessfully placed aseniorbond foranamountof €1bnwitha 9-year maturity,annual coupon of
3.724%,andsigneda€125mbilateralloanwithmaturityinJan-35
• In Feb-25, T. Chile signed a €58m bilateral loan with maturity in Feb-28, and in Mar-25, Colombia
Telecomunicacionessigneda$100mbilateralloanwithmaturityinApr-26
Telefónica financing activity allowed to maintain a solid liquidity position of €20,413m (€10,274m of undrawn
committedcreditlines;€9,487mmaturingover12M).AsofMar-25,theGrouphas covereddebtmaturitiesoverthe
nextthreeyearsandtheaveragedebtlifestoodat11.5years.
Telefónica and its holding companies continued their issuance activity under the Promissory Notes and Commercial
PaperProgrammes(DomesticandEuropean),maintaininganoutstandingnotionalbalanceof€1,500masofMar-25.
–––––––––––––––––––––––––––––––––––––––––––––––––
(*)Adjusted.Thereconciliationbetweenreported,adjusted,andorganicfiguresisincludedintheSelectedFinancialdatapublishedfortheperiod.
8
Sustainabilityperformance
Telefonica’sapproachtosustainabilityispragmaticandfocusedonreducingriskanddeliveringvalue.Ourobjectivesare
alignedwiththeUNSDGs.ForQ125,wehighlight:
“E”Environmental:Buildingagreenerfuture(SDG#7,#9,#11,#13)
•Hedgingenergycostsviarenewables:withthestartofsupplyfromthePPAinGermany(~350GWh/year),the
shareofelectricityconsumptioncoveredbyPPAswillreach~30%atGrouplevelin2025(22%in2024).
•Helpingcustomersdecarbonise:launchedupgradedAI-drivensolutions,e.g.,SmartStepsoutdoorlighting(up
to-30%energyconsumption),orKeylessenhancedfleetmanagement(fuelsavings+loweremissions).
“S”Social:Helpingsocietythrive(SDG#8,#9,#10,#11)
•Connectingmorecommunities: 98%4Gpopulationcoverageincoremarkets.
•Protecting customers: Telefónica’s new cybersecurity services (Protección Digital and Protección Digital
Integral)blockedatotalof7.8mthreatsforSMEandretailcustomersinSpain.
•Monitoring risk: Strengthened supply chain due diligence via sector initiative, using direct feedback from
workersatpotentialhigh-riskmanufacturingsites.
“G”Governance:Leadingbyexample(SDG#5,#10,#16)
•BalancedanddiverseBoard: 40%women;53%independents.
•Shareholderconfidence: AllresolutionsapprovedattheGeneralShareholders’Meeting.
•FiscalTransparencyReportpublished:Totaltaxcontributionof€8.4bninFY24.
As shown in the socio-economic contribution report published for FY24, Telefónica’s activities have generated a
positive impact in the communities where it operates both directly and indirectly, via the multiplier effect it has on
societyandotherindustries.TheseeffortsreflectTelefónica’sabilitytodrivesustainabilityinsocietyandhighlightsits
contributiontoUNSDGs.
9
TELEFÓNICAESPAÑA
(y-o-ychangesinorganicterms)
33% oftotalTelefónicaQ125organicrevenue 36% oftotalTelefónicaQ125organicEBITDA
Keymessages
• Accelerationiny-o-yaccessgrowth
• Accelerationiny-o-yEBITDAaLgrowth(+1.0%)
• FiberpasswentliveinMarch
Operatingperformance
TelefónicaEspaña'sresultsinQ125showedapositivecommercialperformance(netaddsincreasedy-o-yinallmain
services),higherrevenuegrowth(+1.7%y-o-y),andimprovedprofitability(EBITDAaL+0.9p.p.vs.Q424),allasaresult
oftheCompany'sfocusondeliveringanexcellentservice.
Severalactionsfocusedonincreasingvaluewereimplementedduringthequarter;thepriceincreaseoftheMovistar
brandinmid-January,therenewaloftheFusiónDigitalportfolioforcompaniesinFebruary,andthelaunchofFiberpass,
the fibre marketer resulting from the alliance with Vodafone, on 1st March with a network of 3.65m PPs and 1.4m
connectedcustomers.
T. España remains committed to responsible digitalisation through various initiatives. In the environmental area,
Movistar Plus+ already has 20 series certified with ISO carbon footprint certification and has reduced the acoustic
impact of network deployment and dismantling by 30% y-o-y. In the social sphere, Movimiento Azul continues to
promotedigitalinclusion,theresponsibleuseoftechnologyandcarefortheplanet,throughtraining,workshopsand
educationalcontent,withinitiativessuchasthe"Voces"programme.
Accesses grew 5% y-o-y due to the high contribution of new IoT lines (+40% y-o-y) and the incorporation of new
wholesaleaccessesfromFiberpass.Themainretailaccessespostednetaddsatagoodlevelwhichenabledthey-o-y
growth rate to accelerate; FBB accesses (+1.7%, +0.2 p.p. vs. Q4), mobile contract (+2.0%, +0.4 p.p. vs. Q4) and TV
(+4.5%,+1.7p.p.vs.Q4).TVnetadds(+66k)werethebestinmorethan6years,andpenetrationofthefullspeed(1
Gbps)intheretailfibrebaseexceeded50%.
Theconvergentbaseadded5kcustomersinQ125andgrew0.5%y-o-y(inlinewithQ424),supportedbyalowchurn
rate(0.9%)whichremainedstabley-o-ydespitethepriceupgradeinJanuary.ThelatterhelpedARPUtoincrease0.2%
y-o-y to €92.3 (+€1.7 vs. Q4 24). Both figures translate into an average convergent customer value well above the
marketaverage.
Financialperformance
RevenuegrowthacceleratedinQ125(+1.7%y-o-y,+0.4p.p.vs.Q424)duetohigherhandsetsales(+17.7%y-o-y;+8.8
p.p.vs.Q424,onamorefavourablecomparable)andsustainedgrowthinservicerevenues(+1.0%inlinewithQ424).
Retailrevenuesincreased2.6%y-o-yinQ125(-0.6p.p.vs.Q424)drivenbythelargercustomerbase,priceincreases
and solid IT sales, although showing some sequential deceleration due to the strong performance of IT in Q4 24.
Wholesale and Other revenues declined 6.5% y-o-y (+2.0 p.p. vs. Q4 24), mainly due to the non-linearity of Other
revenues.
EBITDAgrew1.0%y-o-ysupportedbyhigherrevenuesandthevariousefficiencylevers,notablythosestemmingfrom
therealignmentoftheworkforceeffectiveatthebeginningofMarch2024andthetransformationofthenetwork.The
EBITDAmargininQ125was35.6%(-0.3p.p.y-o-y).Moreover,EBITDAaLincreased1.0%thankstothehigheryear-on-
yearstabilisationinthecostofleases.
Finally,EBITDAaL-CapExincreased2.0%y-o-yanditsmarginoverrevenuesreached20%(+0.1p.p.y-o-y)thankstoa
containment of CapEx (-0.8% y-o-y) due to the end of fibre rollout (31m PPs) and despite the extension of the 5G+
footprint.
10
TELEFÓNICABRASIL
(y-o-ychangesinorganicterms)
28% oftotalTelefónicaQ125organicrevenue 35% oftotalTelefónicaQ125organicEBITDA
KeyMessages
• ExcellentperformanceincontractandFTTH(y-o-ygrowthinaccesseswithlowchurn)
• Revenuegrowthaboveinflationinmobileandfixed(both+6.2%)
• EBITDAmarginexpansion(+0.7p.p.y-o-y)despitethehigherweightofdigitalservices
Operatingperformance
OnApril11th,theagreementbetweenTelefónicaBrasilandAnatelwasformalisedtomigratefromtheconcessionto
authorisation regime. This agreement will allow the Company to transform its business and operations, positively
impactingitsresultsstartingin2025.
Vivo's differential assets enable it to maintain clear leadership in mobile (39% market share), especially in contract
(43%).
Inmobile,contractaccessesgrewby7%y-o-y,thankstoboththemigrationofprepaidcustomersandthegrowthinnet
adds.In February2025, afrontbook tariffincrease wasannounced, withan averageincrease slightlyabove inflation,
keeping churn at very low levels (1.1%, stable y-o-y). Despite the growth in accesses, contract ARPU maintained its
growth(+1.9%y-o-y).
In fixed, Vivo also maintains leadership with a market share in FTTH of 18%, significantly higher than its main
competitors.TheCompanyremainsfocusedonFTTHgrowth,withaccesses+13%y-o-y,nowaccountingfor96%ofFBB
accesses(+3p.p.y-o-y).PPsreached29.6m(take-uprate24%,+1p.p.y-o-y),makingittheoperatorwiththelargest
FTTHdeploymentinLatinAmerica.
VivoTotal(combinedFTTH+mobileoffering)amountedto2.7maccesses(+77%y-o-y),improvingtheaveragevalueof
Vivo'scustomers,asbundledcustomershavebetterARPUandlowerchurn.
Vivocontinuestostrengthenitsecosystemofaccessoryproductswiththeacquisitionofi2Go,acompanyspecialisedin
thecommercializationofsmartphoneaccessoriesandconsumerelectronics,complementingtheportfolioofproducts
offeredbytheOVVIbrand.
InSustainability,VivowastheleaderinAnatel’saccessibilityrankingthatrecognizesgoodpracticesincustomerservice
forpeoplewithdisabilities.Amongthesepractices,the2025TraineeProgramincluded11%peoplewithdisabilities,as
wellas56%ofselectedcandidatesidentifiedasBlack.
Financialperformance
Revenue grew +6.2% in Q1 25 in local currency (-7.2% reported), driven by both the mobile and fixed business
segments.Mobileservicerevenuegrew+6.5%,supportedbytheincreaseincontractaccessesandhigherARPU.Fixed
revenuegrew+6.2%,drivenbyFTTH,digitalservices,andtheperformanceoftheB2Bsegment.Digitalservices(B2Cand
B2B)increased+23.5%,nowaccountingfor11%ofthecompany'stotalrevenue,primarilyleveragedbyOTTservicesin
B2C(+27.0%;3.4msubscribers)andCloudservicesinB2B(+38.3%).
EBITDAincreased+8.0%inQ125(-5.7%reported),supportedbyrevenuegrowthwithmarginexpansion(+0.7p.p.y-o-
y),despitehighercostsassociatedwithdigitalservicesandincreasedcommercialexpenses,whichwerepartiallyoffset
byefficienciesachievedthroughdigitalisation.
EBITDAaL-CapExgrew14.5%y-o-yinQ125(-0.1%reported)duetoEBITDAaLgrowth(+8.0%y-o-y)andareductionin
CapEx(-0.3%y-o-y;CapEx/Revenue13.0%,-0.9p.p.y-o-y).TheEBITDAaL-CapExmarginreached19.0%(+1.4p.p.y-o-y).
11
TELEFÓNICADEUTSCHLAND
(y-o-ychangesinorganicterms)
21% oftotalTelefónicaQ125organicrevenue 20% oftotalTelefónicaQ125organicEBITDA
Keymessages
•Operationalmomentum,contractnetadds+4.5%y-o-y
•FinancialsreflectinganticipatedheadwindsfromB2Ptransformation,handsetdeclinesandtoughercomps
•Ongoingprogresswithnetworkdensificationand5Groll-out
Operatingperformance
T. Deutschland started 2025 focusing on operating profitability. In a dynamic market environment with higher
commercial and promotional activity, the overall market remains structurally sound. The company’s mobile trading
momentumbenefitedfromcontinuednetworkandservicequalityenhancements.
T.DeutschlandremainscommittedtoitsESGroadmaptodeliverasustainabledigitalfuturebystrivingfornetzero
emissionsalongtheentirevaluechain(Scopes1,2+3)by2040.T.Deutschlandhasagainreceivedexcellentrecognitions
foritssustainabilityinitiativeswitha ranking in the highest category of the ESG Transparency Award as well as top
marksintheSustainalyticsESGriskrating.
Mobilecontractnetadds(ex.3rdpartyMNO-accesses)werestrong,+164kinQ125,supportedbyB2Bcustomerwins
and strengthened B2P partnerships, as well as the sustained attractiveness of the O2 brand. In a competitive
environment,O2contractchurnlevelremainedbroadlystableat1.1%y-o-y.Overall,mobilecontractbase(ex.3rdparty
MNO-accesses) grew +5.0% y-o-y to 17.4m while the total mobile contract base (26.3m, -6.2% y-o-y) reflects the
anticipatedprogressofcustomermigrationinthepartnerbusiness.
O2contractARPUwasflattishy-o-y(-0.1%),drivenbyfriends&family-offers,whichnaturallyresultedinahighershare
of2ndand3rdSIMcardsinthebasewithlowerARPUswhilebeingaccretivetoMSR.
Mobileprepaidposted-308knetdisconnections inQ1 25(Q124-285k)mainlydueto theongoing Germanmarket
trendfromprepaidtopostpaidmigration.
FixedbroadbandrecordedzeronetaddgrowthinQ125withcableandfibrenetaddscompensatingforlegacyDSL-
churn.Overall,churnremainedlowwhilebeingslightlyup(0.2p.p.y-o-y)to1.1%inQ125.
Financialperformance
Revenuefell -2.0%inQ1 25,drivenby acombinationof trendsinthe mobilebusiness.Mobile servicerevenue was
-1.9%y-o-y,mainlyduetotheanticipatedheadwindsfromB2Ptransformation,whichwereonlypartlycompensatedby
core business momentum, including the solid customer intake from prior periods. Handset revenue declined -4.6%
primarily as a result of the ongoing market trend of longer replacement cycles and somewhat mounting consumer
reluctancetospend.Fixedrevenuecontinueditsupwardtrend,+2.2%y-o-y,onthebackofanimprovedvalue-mix.
EBITDAfacedtoughcompsinQ125,withfocusedstrategyexecutionalreadyamajordriverofcostmanagementinQ1
24.The-2.0%y-o-ydeclinealsoreflectedheadwindsfromlowergrossmargins,aswellastheanticipatedchangesinthe
partnerbusiness.Thiswaspartlyoffsetbythecompany’ssuccessfullyimplementedgrowthinitiativesacrossbusiness
units.Asaresult,EBITDAmarginstoodunchangedat31.1%.
CapExshowstheusualback-endloadedin-yearphasing,-12.9%vs.Q124.Nonetheless,T.Deutschlandexecutedmore
than 1.6k of network expansion measures and built 100 new sites in the quarter. As such, network coverage in
communities and along railway routes and roads continued to improve; often bringing fast network coverage to
sparselypopulatedregionsforthefirsttime.CapEx/Revenueratiowas9.9%inQ125.
Consequently,Q1EBITDAaL-CapExposted+4.8%y-o-yandEBITDAaL-CapExmargin+0.8p.p.y-o-yto12.0%.
12
TELEFÓNICATECH
(y-o-ychangesinorganicterms)
Keymessages
•Revenuegrowingat6.6%y-o-y
• Bookingsincreaseandahealthyfunnelgivevisibilityfortherestoftheyear
• Improveddeliverycapabilities,marketpositionandrecognitionamongindustry
During Q1 25, Telefónica Tech as a premier provider of NextGen solutions expanded capabilities through its Global
ServiceLinesacrossdifferentgeographies.Asatalent-ledorganisation,T.Techhasmorethan7kFTEs(c.80%inEurope)
andholds+6.5kcertificationsinthird-partytechnologies.
TelefónicaTechisrecognizedbyIndustryAnalysts:“Leader:inMagicQuadrantManagedIoTConnectivityServices2025”
for11thconsecutiveyearand“Leader:inMagicQuadrantfor4Gand5GPrivateMobileNetworkServices”byGartner;
”VerystronginCollaborationandCustomerContactSolutionsandinManagedHybridCloudServices”and“Leader:in
GlobalIndustrialIoTServices”byGlobalData.
Operatingperformance
BookingsincreasedinQ125by7%y-o-y,mostlydrivenbytheprivatesector,inparticularbyFinancial,Retail,Utilities,
HealthandManufacturingverticals.Commercialfunnelgrewy-o-yatdouble-digit(>15%)withahealthysalespipeline.
Cybersecuritycapabilitieswerereinforcedwiththelaunchofi)GlobalWebApplicationDefensebasedonWAAP(Web
AppandAPIProtection)andtheintegrationofIBM’squantum-safetechnology,ii)newManagedSecurityServicesfor
Checkpoint and iii) AI-based services for access security with Palo Alto. Cloud capabilitieswere enhanced with new
features in the proprietary cloud platform, such as object storage replication, and with the award received as “AWS
ManagedServicesProvider”globally.
InAI&Data,TelefonicaTechGenAIplatformwaslaunchedtoenabletherapid,secure,andefficientdeploymentof
virtual assistants and AI agent for all size of enterprises. Regarding, IoT, a new mobility solution was launched with
Keyless(enhancingdrivingexperiencebytelematicsdata).Additionally,wepartnerwithDexorytoautomatewarehouse
inventoriesleveragingitsdigitaltwinplatformwithourproprietaryIoTplatform.
Finally,thevalue proposition forSMEswas reinforcedwith newsecurityservices inpartnershipwith Proofpoint and
Ciscoensuringsecurenetworkoperations.
FinancialPerformance
Revenue(€508m)increased6.6%y-o-yinQ125,slowingdownfrompreviousquartersmainlyduetoadecelerationin
somemarkets(Hispam,UKandGermany)andsomephasingintheclosingofsomecontractsattheendof2024.
Revenue mix is well-balanced in services (high weight from Managed & Professional services & own platforms) and
geographies (>85% from hard-currency markets). Outlook for the rest of the year remains positive due to the good
commercialperformanceandsalespipelinesupportsapositiverevenueoutlook.
13
TELEFÓNICAINFRA
KeyMessages
• 28.6m1premisespassed(PPs)withFTTH,>100kkm2ofinternationalconnectivity
• Pursuingnewinitiativesindigitalinfraassets
• Telxiusmaintainedahighprofitability(50%EBITDAmargin)
Operatingperformance
TelefónicaInfra:maintainsitsroleofgrowthoptionalityprovider
InSpain, Bluevía(Vauban/CAAconsortium 45%,TelefónicaInfra 25%andTelefónica España30%)is now focusedon
drivingconnectionsafterreachingitstargetof5mPPs.
InMarch,Fiberpass(TelefónicaEspaña38%,TelefónicaInfra25%andVodafone37%)beganitsoperations,with3.6m
PPs,offeringwholesaleservicesinurbanandsemiurbanareas.
InBrazil,FiBrasil(CDPQ50%,TelefónicaInfra25%andTelefónicaBrasil25%)connected151municipalitieswithhigh-
qualityfibre (4.4mPPs in22states),consolidatingasaneutral fibreprovider, ensuringconnectivity tomore than50
ISPs.
IntheUK,nexfibre(InfraViaCapitalPartners50%,TelefónicaInfra25% andLibertyGlobal25%) continuedto deploy
fibrereaching2.2mPPs,becomingthe2ndlargestalternativenetworkoperatorintheUK.
InGermany,UnsereGrüneGlasfaser(UGG)(Allianz50%,TelefónicaInfra40%andTelefónicaDeutschland10%)isactive
in 8 federal states (“Länder”). Over 1m households are currently under construction or have already been deployed
(0.6malreadydeployed).
ONNET Fibra Chile (KKR 60% and Telefónica Chile 40%), totaled 4.1m PPs as of Mar-25. Meanwhile, ONNET Fibra
Colombia(KKR60%andTelefónicaColombia40%)progressedwithitsroll-outto4.6mPPsandinPeru,Pangeatotaled
3.2mPPs.
InMarch,AsterionIndustrialPartnersclosedthedisposalofNabiaxdatacentrestoAermont,includingTelefónica’s20%
stakeinthecompanyatanattractivemultipleof>40xEV/EBITDA.
Telxius:Aleadingglobalconnectivityprovider
During Q1 Telxius sustained positive traffic growth (+10% y-o-y), which, combined with the increase in the value of
contractssignedwiththirdparties(+91%y-o-y)andwithcontinuouscostmanagement,allowedittomaintainahigh
profitability(49.8%EBITDAmargin).Inaddition,TelxiusisnowofferingconnecttoCloud,aservicedesignedforcarriers,
ISPs,and companieswithcriticalcloudworkloads toprovideprivate,stable,low-latency connectivityto majorpublic
cloud regions such as São Paulo (Brazil), Virginia and Miami (US), and Santiago (Chile). With coverage in strategic
locationsthroughoutAmericaandEuropeandaccesstotheinternationalbackbone,ConnecttoCloudallowsclientsto
extendtheirinfrastructuretothecloudecosystemwiththesecurityandtheperformancethattheirbusinessdemands.
14
1 IncludedinthetotalGroup´sFTTHPPs
2 InternationalfibreasofMar-25
TELEFÓNICAHISPAM
(y-o-ychangesinorganicterms)
14% oftotalTelefónicaQ125organicrevenue 9% oftotalTelefónicaQ125organicEBITDA
KeyMessages
• Acceleratingstrategyexecution:saleofPeruandArgentinaandbindingagreementinColombia
• PositivecontractnetaddsinQ125(after5quarters)duetoimprovementinChileandColombia
• Progressintransformationtofibre,with98%ofbroadbandaccessesalreadyconnectedtoFTTH
Operatingperformance
In2025,TelefónicaGroup'sstrategyinHispamhasbeenaccelerated,reducingexposuretotheregion:
• On February 24, shares in Telefónica Argentina were sold for ~€1,189m. The signing and closing of the
transactiontookplacesimultaneously.
• On March 12, a binding agreement was reached with Millicom for the sale of 67.5% of Colombia
Telecomunicaciones for ~€368m. Closing is subject to certain conditions, including regulatory approvals and
agreementswithminorityshareholders.
• OnApril13,TelefónicaHispamsoldallof itssharesinTelefónicadel Perú,withthesigningandclosingofthe
transactiontakingplacesimultaneously.
InQ125,mobileperformedpositively,reversingthenegativetrendofthelast5quarters,withpositivecontractnet
adds(+58kvs.Q124-106kandQ424-57k)thankstoMexicoandtheimprovementinColombia(launchofthesingle
network).
Infixed,fibreaccessestotalled2.9m,increasingFTTHpenetrationovertotalbroadbandaccessesby6p.p.y-o-yto98%.
PPsamountedto13.6m(+2.2my-o-y).
Financialperformance
Revenuedeclined3.4%y-o-y,impactedbyChile(revenueassociatedwithshutdownoflegacynetworkwererecordedin
Q124) and Colombia(weakerB2B performance);partiallyoffset byservicerevenue fromMexico,which continueto
showsolidgrowth(+5.0%y-o-y).
EBITDAdeclined9.8%vs.Q124,mainlydrivenbytheimpactsmentionedabove.EBITDAmarginstoodat20.7%,-1.5
p.p.y-o-y.
EBITDAaL-CapEx fell 30.9% y-o-y, mainly due to the performance of EBITDA and higher lease expenses in Colombia
(associatedtothe start of operations of thesinglenetwork).CapEx increased 4.1% vs.Q124,largely a result of the
networkqualityimprovementinChile.
EvolutionbyCountry
•Chile: Commercial results continue to show a clear improvement, reversing the negative trend in previous
quartersinmobilecontract,withpositivenetaddsinQ125(+3k;Q124-43k)followingtheregulator'srestrictive
measures announced in February for portability (minimum 120-day permanence with the operator of origin,
havingpaidthedebtissuedandbiometricvalidationoftheregistration).Thismeasuresallowedmobilecontract
portabilityinthemarketfellinMar-25byapproximately22%vs.6monthsaverage.Servicerevenuefellby5.6%
y-o-y and EBITDA by 10.6%, mainly due to the Q1 24 revenue associated with shutdown of legacy network
(excludingthisimpact,revenueandEBITDAwouldhavegrowny-o-y).MovistarChileobtainedtherecertification
oftheISO50001standard,awardedbyAENOR,reaffirmingitscommitmentwithefficientenergyandsustainable
operations.
15
•Colombia: The launch of the single network announced in Dec-24 (integration of Movistar and Tigo's mobile
accessinfrastructuresunderajointly-ownedCompany,extendingcoverageandmakingamoreefficientuseof
resources)hasledtoacommercialimprovementinmobile.Incontract,Q125netaddsamountedto+26k(Q424
-62k,Q124-129k)andinprepaidto+192k.Servicerevenuedeclinedby6.2%y-o-yandEBITDAby23.5%,mainly
due to the B2B business performance. Telefónica Movistar Colombia’s “Mujeres en Red” program has been
recognizedasastandoutinitiativeintheWorldEconomicForum’s2025Diversity,Equity,andInclusionReport,
positioningitasaglobalreferenceinequalopportunityandwomen’sempowerment.
•México:Mobilecontractcontinuedtoperformwell,with48knetadditionsinQ125.Servicerevenuegrew5.0%
y-o-y,primarilysupportedbycontractandB2B.EBITDAincreased0.1%y-o-y.ThefirstSupplierForumof2025
was held, where we reinforced our commitment to extending corporate responsibility throughout the entire
valuechain.
16
JointVenture,VMO2
(100%ofVMO2;y-o-ychangesinorganicterms)
Keymessages
• Sustainedfixedgrowth,withARPUgrowthof1.6%y-o-ysupportedbyvalueretentionfocus
• Revenueexcludinghandsetandnexfibreconstructionreturnstogrowth
• Keynetworkprogrammesoffibreand5Grolloutprogress
Operatingperformance
VMO2remainedfocusedonexecutingagainstitsstrategicpriorities,retainingcustomervaluethroughfastandreliable
connectivity,disciplinedpricing,andenhancedservicedespiteatoughertradingenvironment.Thecompanycontinued
to invest in its networks and services to support future growth, while delivering further progress on its turnaround
strategy,reflectedinlowercomplaintsandhighercustomersatisfaction.
The fixed footprint now reaches 18.4m UBB PPs, with 165k passed in Q1 25, driven by the ongoing nexfibre build.
Additionally,thecompanyannouncedthelaunchoftrialsforagiffgafffibrebroadbandservice,buildingonthebrand’s
successfultrackrecordinmobiletoreachnewcustomersegmentsandfurtherleverageVMO2’swholesalecapabilities.
Inmobile,investmentin5Gcoverageandcapacityadvanced,with5Gcoveragenowreaching77%oftheUKpopulation.
VMO2keptprogressingitsESGstrategythroughnewcircularityinitiatives.In2025,thecompanypledgedtodonate12k
devicestohelpdigitallyexcludedindividuals,whilepromotingitsO2Recyclescheme,whichencourageshouseholdsto
returnunusedtechforcompensation,enablingmeaningfulreuseforthoseinneed.
Thecontractmobilebasefell-123kinQ125(-134kinQ1 24),primarily drivenby largeenterpriseandpublic sector
customerdisconnections,alowerARPUsegment,whileconsumerperformanceimprovedcomparedtoQ12024.This
wasreflectedinO2mobilecontractchurn,whichremainedstableq-o-qat1.1%.
InQ125,IoTaccessesincreasedby298k(+413kinQ124),helpingtosustainthemobilecontractbase,whichremained
atarobust35.6m.
Fixedbroadbandnetaddswerebroadlystableat-44kinQ125(+5kinQ124),primarilyduetoanincreasedlevelof
churn in the quarter following significant market discounting. Consumer fixed revenue growth was driven by a
continuedincreaseinARPUperfixed-line,morethanoffsettingthenetcustomerreduction.
Financialperformance
Revenuedecreased-4.2%y-o-yinQ125withmobilerevenues-1.1%y-o-yinQ125,withalowmarginhandsetsales
decline (-6.6% y-o-y) as the primary trading driver, partially offset by the benefit of price rise phasing to service
revenues.Fixedrevenueincreased+0.7%y-o-yinQ1,withcontinuedARPUgrowth(+1.6%y-o-y)supportedbyvalue
focus,whileB2Bdeclined-7.9%y-o-yinQ1largelyreflectingareducedleveloflong-termleasesbeingenteredintoand
lowerannuityrevenues.Otherrevenuefell-34.2%y-o-y,drivenbyareducedlevelofnexfibreconstructionrevenue.
EBITDAfell-3.1%y-o-yinQ125,attributabletoareductioninnexfibreconstruction,withgrowthexcludingthisimpact
supportedbyincreasedcorerevenues,reflectinganimprovedrevenuemix,andcostefficiencies.
Q1 25 CapEx decreased by -12.9% y-o-y with a CapEx/Revenue ratio of 20.1%. As such, EBITDAaL-CapEx increased
+15.2%y-o-yandEBITDAaL-CapEx/Revenuestoodat13.9%.
17
APPENDIX
Selectedconsolidatedfinancialstatements
TELEFÓNICACONSOLIDATEDINCOMESTATEMENT
Unauditedfigures(Eurosinmillions) Q125 Q124
y-o-y%
Chg
y-o-y%
Org.Chg
Revenue 9,221 9,497 (2.9) 1.3
Otherincome 380 276 37.5 6.1
Operatingexpenses (6,535) (6,616) (1.2) 1.9
Impairments&lossesondisposalofassets (8) (11) (24.9) (23.3)
EBITDA(1) 3,058 3,146 (2.8)
Depreciationandamortisation (1,949) (2,018) (3.4)
Operatingincome(OI) 1,109 1,128 (1.7)
Shareofprofit(loss)ofinvestmentsaccountedforbythe
equitymethod (113) 45 c.s.
Netfinancialincome(expense) (361) (430) (16.1)
Profitbeforetaxes 635 743 (14.6)
Corporateincometax (174) (136) 28.1
Profitfortheperiodfromcontinuingoperations 461 608 (24.2)
Profitfortheperiodfromdiscontinuedoperations (1,732) (44) n.s.
Profitfortheperiod (1,271) 563 c.s.
AttributabletoequityholdersoftheParent: (1,304) 533 c.s.
Fromcontinuingoperations 427 576 (26.0)
Fromdiscontinuedoperations (1,731) (44) n.s.
Attributabletonon-controllinginterests: 33 31 6.6
Fromcontinuingoperations 34 31 9.3
Fromdiscontinuedoperations (1) (1) 155.5
EBITDA* 3,014 3,146 (4.2) 0.6
EBITDA*margin 32.7% 33.1% (0.4p.p.) (0.2p.p.)
Weightedaveragenumberofordinaryshares
outstandingduringtheperiod(millions) 5,637 5,633 0.1
Basicearningspershareattributabletoequityholdersof
theParent(€): (0.24) 0.08 c.s.
Fromcontinuingoperations(€) 0.06 0.09 (29.0)
Fromdiscontinuedoperations(€) (0.31) (0.01) n.s.
Basic*earningspershareattributabletoequityholders
oftheParentfromcontinuingoperations(€) 0.08 0.11 (20.9)
-TheweightedaveragenumberofordinarysharesoutstandingduringtheperiodhasbeenobtainedapplyingtheIASrule33"Earningspershare".Thereby,theweighted
averageofsharesheldastreasurystockhavenotbeentakenintoaccountasoutstandingshares.
-BasicearningspershareratioiscalculateddividingProfitfortheperiodAttributabletoequityholdersoftheParent,adjustedforthenetcouponcorrespondingto“Other
equityinstruments”(-€66minQ125and-€69minQ124),bytheweightedaveragenumberofordinarysharesoutstandingduringtheperiod.
-GroupconsolidatedresultsdeconsolidateTelefónicaArgentinasinceFebruary24,2025,andTelefónicaPeru’sassetsandliabilitieshavebeenreclassifiedasheldforsaleat
March 31, 2025 after its sale on April 13, 2025. According to IFRS, Telefónica Argentina and Telefónica Peru have been reported as discontinued operations within the
TelefónicaGroupand2024resultshavebeenrevisedaccordingly.
(*)Adjusted.Thereconciliationbetweenreported,adjusted,andorganicfiguresisincludedintheSelectedFinancialdatapublishedfortheperiod.
(1)Q125EBITDAincluded€96mcapitalgainrelatedwiththe sale of 20% stake in Nabiax(datacentrebusiness)and€52mofrestructuringcostsmainlyinOtherCo. &
Eliminations.
18
TELEFÓNICACONSOLIDATEDSTATEMENTOFFINANCIALPOSITION
Unauditedfigures(Eurosinmillions) Mar25 Dec24 %Chg
Non-currentassets 75,464 78,133 (3.4)
Intangibleassets 9,798 9,875 (0.8)
Goodwill 16,708 16,461 1.5
Property,plantandequipment 19,633 21,439 (8.4)
RightsofUse 7,613 7,907 (3.7)
Investmentsaccountedforbytheequitymethod 8,159 8,375 (2.6)
Financialassetsandothernon-currentassets 7,103 7,403 (4.0)
Deferredtaxassets 6,450 6,673 (3.3)
Currentassets 23,550 22,369 5.3
Inventories 906 954 (5.0)
Receivablesandothercurrentassets 9,800 10,445 (6.2)
Taxreceivables 936 970 (3.5)
Othercurrentfinancialassets 3,092 1,800 71.7
Cashandcashequivalents 7,059 8,062 (12.4)
Non-currentassetsanddisposalgroupsheldforsale 1,757 138 n.s.
TotalAssets=TotalEquityandLiabilities 99,014 100,502 (1.5)
Equity 23,665 22,749 4.0
Equityattributabletoequityholdersoftheparentandotherholdersofequity
instruments 19,717 19,347 1.9
Equityattributabletonon-controllinginterests 3,948 3,402 16.1
Non-currentliabilities 51,095 52,019 (1.8)
Non-currentfinancialliabilities 32,865 33,192 (1.0)
Non-currentleaseliabilities 5,768 6,077 (5.1)
Payablesandothernon-currentliabilities 3,823 3,693 3.5
Deferredtaxliabilities 3,049 2,905 5.0
Non-currentprovisions 5,591 6,152 (9.1)
Currentliabilities 24,254 25,734 (5.7)
Currentfinancialliabilities 4,826 5,590 (13.7)
Currentleaseliabilities 2,024 2,226 (9.1)
Payablesandothercurrentliabilities 13,154 14,606 (9.9)
Currenttaxpayables 740 1,614 (54.2)
Currentprovisions 1,496 1,665 (10.1)
Liabilitiesassociatedwithnon-currentassetsanddisposalgroupsheldforsale 2,013 33 n.s.
-Theconsolidatedstatementoffinancialpositionincludesapositivevalueofthederivativesportfolioforanetamountof€1,018m,€1,827mincludedasfinancialliabilities
and€2,845mincludedasfinancialassets.
-GroupconsolidatedresultsdeconsolidateTelefónicaArgentinasinceFebruary24,2025,andTelefónicaPeru’sassetsandliabilitieshavebeenreclassifiedasheldforsaleat
March31,2025,afteritssaleonApril13,2025.
19
TELEFÓNICACONSOLIDATEDCASHFLOWSTATEMENT
Unauditedfigures(Eurosinmillions) Q125 Q124 y-o-y%Chg
Cashreceivedfromoperations 11,498 11,717
Cashpaidfromoperations (8,845) (8,912)
Netpaymentsofinterestandotherfinancialexpensesnetofdividendsreceived (608) (554)
Taxesproceeds/(paid) (170) (158)
Netcashflowprovidedbyoperatingactivitiesfromcontinuingoperations 1,875 2,093 (10.4)
Netcashflowprovidedbyoperatingactivitiesfromdiscontinuedoperations (38) 140 c.s.
Netcashflowprovidedbyoperatingactivities 1,837 2,233 (17.7)
(Payments)/proceedsoninvestmentsinproperty,plantandequipmentand
intangibleassets,net (1,408) (1,408)
Proceedsondisposals/(paymentsoninvestments)incompanies,netofcashand
cashequivalentsdisposed 1,008 (25)
Proceeds/(payments)onfinancialinvestmentsnotincludedundercashequivalents 279 (11)
Netproceeds/(Payments)fortemporaryfinancialinvestments (1,526) (354)
Netcashflowusedininvestingactivitiesfromcontinuingoperations (1,647) (1,798) (8.4)
Netcashflowusedininvestingactivitiesfromdiscontinuedoperations (87) (194) (55.2)
Netcashflowusedininvestingactivities (1,734) (1,992) (13.0)
Dividendspaid (119) (144)
Proceeds/(payments)fromsharecapitalincrease/(decrease)withminorities
interest (3) —
Proceeds/(payments)oftreasurysharesandotheroperationswithshareholders
andwithminorityinterests (88) (899)
Operationswithotherequityholders(1) — (66)
Proceedsonissueofdebenturesandbonds,loans,borrowingandpromissory
notes,andotherdebts 1,425 1,953
Repaymentsofdebenturesandbonds,andotherdebtsandrepaymentsofloans,
borrowingsandpromissorynotes (1,485) (1,160)
LeasePrincipalPayments (722) (633)
Financedoperatingpaymentsandinvestmentsinproperty,plantandequipment
andintangibleassetspayments (41) (28)
Netcashusedinfinancingactivitiesfromcontinuingoperations (1,033) (977) 5.7
Netcashusedinfinancingactivitiesfromdiscontinuedoperations (34) (28) 21.4
Netcashusedinfinancingactivities (1,067) (1,005) 6.2
Effectofchangesinexchangerates,cashreclassifiedtoassetsheldforsale,effect
ofchangesinconsolidationmethodsandothers (39) 39
Netincrease(decrease)incashandcashequivalentsduringtheyear (1,003) (725) 38.3
Cashandcashequivalentsatthebeginningoftheperiod 8,062 7,151
Cashandcashequivalentsattheendoftheperiod 7,059 6,426
(1)Includesissuanceandcouponsofundateddeeplysubordinatedsecurities.
-GroupconsolidatedresultsdeconsolidateTelefónicaArgentinasinceFebruary24,2025,andTelefónicaPeru’sassetsandliabilitieshavebeenreclassifiedasheldforsaleat
March 31, 2025 after its sale on April 13, 2025. According to IFRS, Telefónica Argentina and Telefónica Peru have been reported as discontinued operations within the
TelefónicaGroupand2024resultshavebeenrevisedaccordingly.
20
Alternativeperformancemeasures
The Group's management utilises a range of Alternative Performance Measures (APMs) alongside those expressly
defined in the IFRS to gain additional insights into the Group's performance, solvency, and liquidity. However, it's
importanttonotethatthesemeasuresshouldnotbeviewedinisolationorassubstitutesforIFRSmeasures.
Group consolidated results deconsolidate Telefónica Argentina since February 24, 2025, and Telefónica Peru’s assets
andliabilitieshavebeenreclassifiedasheldforsaleatMarch31,2025afteritssaleonApril13,2025.AccordingtoIFRS,
TelefónicaArgentinaandTelefónicaPeruhavebeenreportedasdiscontinuedoperationswithintheTelefónicaGroup
and2024resultshavebeenrevisedaccordingly.
EBITDAandEBITDAaL(fromcontinuingoperations)
Earningsbeforedepreciationandamortisation(EBITDA)iscalculatedbyexcludingsolelydepreciationandamortisation
fromOperatingIncome.EBITDAaLiscalculateddeductingamortizationofrightsofuseandinterestofleaseliabilities
fromEBITDA.EBITDAandEBITDAaLareusedtotracktheperformanceofthebusinessandtoestablishoperatingand
strategictargetsofTelefónicaGroupcompanies.EBITDAandEBITDAaLarecommonlyreportedmeasuresandarewidely
usedamonganalysts,investors,andotherinterestedpartiesinthetelecommunicationsindustry,althoughnotdefined
inIFRS,and therefore, may notbecomparableto similar indicators usedbyothercompanies. EBITDA and EBITDAaL
shouldnotbeconsideredasasubstituteforOperatingIncome.
EBITDAaL-CapEx(fromcontinuingoperations)
EBITDAaL-CapExisdefinedasEBITDAaLreducedbyaccruedcapitalexpendituresexcludingthoserelatedtospectrum
acquisitions.
Webelievethatitisimportanttoconsidercapitalexpendituresexcludingspectrumacquisitions,togetherwithEBITDAaL
inordertohaveamorecompletemeasureoftheperformanceofourtelecommunicationsbusinesses.Weusethese
measuresinternallytotracktheperformanceofourbusiness,toestablishoperatingandstrategictargetsoftheGroup's
businessesandinourinternalbudgetingprocess.
EBITDAaL-CapExisnotameasureexpresslydefinedinIFRS,andthereforemaynotbecomparabletosimilarindicators
usedbyothercompanies.Inaddition,EBITDAaL-CapExshouldnotbeconsideredasubstituteforOperatingIncome,the
most comparable financial measure calculated in accordance with IFRS, or any measure of liquidity calculated in
accordancewithIFRS.
AdjustedEBITDA,AdjustedEBITDAaL,AdjustedEBITDAaL-CapEx(fromcontinuingoperations)
“Adjusted”resultorresultsin“adjusted”termsintendtopresentaresultadjustedbycertainfactorswhichdistortthe
analysisofthebusinessperformance,butwithoutadjustingforexchangeratesorhyperinflation.Theadjustedresultis
calculated for EBITDA, EBITDAaL and EBITDAaL-CapEx. The "adjusted" result provides useful information for the
companyandmarketagentsbecause:
• It provides additional information on the adjusted performance of the Group's operations, removing the
distortingeffectsofcertainfactors,astheyarespecifictoacertainmomentandnotassociatedwiththeordinary
performanceofthebusiness,facilitatingtheadjustedanalysisofthebusiness.
• The inclusion of the business adjusted performance is used both internally and by the various agents in the
markettoconsistentlymonitortrendsandoperatingperformanceofthebusiness;thisdataalsofacilitatesthe
relation between the business performance of Telefónica and that of other operators, although the term
"adjusted"isnotatermdefinedinIFRS,andthe"adjusted"measuresincludedhereinmaynotbecomparableto
similarmeasurespresentedbyothercompanies.
Forthepurposesofthisdocument,AdjustedEBITDA,AdjustedEBITDAaLandAdjustedEBITDAaL-CapExaredefinedas
the EBITDA, EBITDAaL and EBITDAaL-CapEx adjusted by the following factors: restructuring costs, significant capital
gains/lossesfromthesaleofcompanies,goodwillimpairmentchargesandmaterialnon-ordinaryimpacts.
Furthermore,theGroupusestheEBITDAmarginmeasure,whichistheresultofdividingAdjustedEBITDAbyrevenue,
andEBITDAaL-CapExmargin, obtained bydividingAdjustedEBITDAaL-CapEx by revenueandserving as a measureof
operatingleverage.
21
Organicvariations
Y-o-y changes referred to in this document as "organic" or presented "in organic terms" intend to present a
homogeneouscomparisonbyapplyingadjustmentswhicharedescribedherein.
Organicvariationsareusedbothinternallyandbythevariousagentsinthemarkettoconductconsistentmonitoringof
trendsandoftheoperatingperformanceofthebusiness.Althoughtheterm"organic"isnotatermdefinedinIFRS,and
the"organic"measuresincludedhereinmaynotbecomparabletosimilarmeasurespresentedbyothercompanies.
Forthepurposesofthisdocument,"organic"variation2025/2024isdefinedasthereportedvariationadjustedbythe
followingfactors:
• Considersaconstantperimeterofconsolidationanddiscontinuedoperationsareexcluded.
• Does not include restructuring costs, significant capital gains/losses from the sale of companies, goodwill
impairmentchargesandmaterialnon-ordinaryimpacts.CapExalsoexcludesinvestmentinspectrum.
• Assumesaverageconstantforeignexchangeratesof2024.Thereportedvariationofthecompaniesofcountries
withhyperinflationaryeconomies(Venezuela)isexcluded.
Debtindicators
a. NetfinancialdebtandNetfinancialdebtplusleasesandNetfinancialdebtpluscommitments
As per the Group calculation, net financial debt includes: i) current and non-current financial liabilities in our
consolidatedstatementoffinancialposition(whichincludesthenegativemark-to-marketvalueofderivatives),ii)other
payablesincludedin“Payablesandothernon-currentliabilities”,“Payablesandothercurrentliabilities”and“Current
taxpayables”(mainlycorrespondingtopayablesfordeferredpaymentofradiospectrumthathaveanexplicitfinancial
componentandthesupplierfinancingforthecustomerfinancingofterminalsales)and(iii)financialliabilitiesincluded
in“Liabilitiesassociatedwithnon-currentassetsclassifiedasheldforsale”.
From these liabilities, the following are subtracted: i) cash and cash equivalents, ii) current financial assets (which
includeshort-termderivatives),iii)thepositivemark-to-marketvalueofderivativeswithamaturitybeyondoneyear,
iv) other interest-bearing assets (components of “Receivables and other current assets”, “Tax receivables” and
“Financialassetsandothernon-currentassets”intheconsolidatedstatementoffinancialposition),v)cashandother
currentfinancialassetsincluded in“Non-current assetsclassified asheld forsale”,vi)mark-to-marketadjustmentby
cashflowhedgingactivitiesrelatedtodebt,andvii)fairvalueofderivativesadjustmentusedfortheeconomichedging
ofgrosscommitmentsrelatedtoemployeebenefits.In"Receivablesandothercurrentassets"weincludethecustomer
financing of terminal sales classified as short term, and "Financial assets and other non-current assets" includes
derivatives,instalmentsforthelong-termsalesofterminalstocustomersandotherlong-termfinancialassets.
Netfinancialdebtpluscommitmentsiscalculatedbyaddinggrosscommitmentsrelatedtoemployeebenefitstonet
financialdebtandthefairvalueofthederivativesusedfortheeconomichedgingofsuchcommitmentstonetfinancial
debtanddeductingthevalueoflong-termassetsassociatedwiththosecommitmentsandthetaxbenefitsarisingfrom
the future payments of those commitments. Gross commitments related to employee benefits are current and
non-current provisions recorded for certain employee benefits such as termination plans, post-employment defined
benefitplansandotherbenefits.
Netfinancialdebt,netfinancialdebtplusleasesandnetfinancialdebtpluscommitmentsaremeaningfulforinvestors
andanalystsbecausetheyprovideananalysisofGroupsolvencyusingthesamemeasuresusedbyGroupmanagement.
They are used to calculate internally certain solvency and leverage ratios. Nevertheless, none of them should be
consideredasasubstituteforgrossfinancialdebtaspresentedintheconsolidatedstatementoffinancialposition.
b. Leverageratio
The leverage ratio is calculated as the ratio of net financial debt over Adjusted EBITDAaL for the past 12 months,
includingorexcludingtheadjustedEBITDAaLofthecompanieswhichareincorporatedorremovedfromtheperimeter
ofconsolidation.
22
FreeCashFlow(fromcontinuingoperations)
TheGroup’sfreecashflowiscalculatedstartingfrom“Netcashflowprovidedbyoperatingactivitiesfromcontinuing
operations”asindicatedintheconsolidatedstatementofcashflows;deducting(payments)/proceedsoninvestmentsin
property, plant and equipment and intangible assets (excluding spectrum payments), dividends paid to minority
interestsandleaseprincipalpayments.
WeonlyconsiderdividendsstemmingfromfreecashflowgeneratedbytheUKJV,excludingpotentialrecapitalizations
which are decided annually based on market conditions, and any other potential cash available for distribution.
Additionally,hybridcouponpaymentsareincorporatedforaclearerviewofavailablerecurrentcashgeneration.
Webelievethatfreecashflowisameaningfulmeasureforinvestorsandanalystsbecauseitprovidesananalysisofthe
cashflowavailabletoprotectsolvencylevelsandtoremuneratetheparentcompany’sshareholders.Thesamemeasure
isusedinternallybyGroupmanagement.Nevertheless,freecashflowshouldnotbeconsideredasasubstituteforthe
variousflowsofcashaspresentedintheconsolidatedstatementsofcashflows.
AdjustedNetIncomeandAdjustedEPS(fromcontinuingoperations)
AdjustedNetincomeandAdjustedEPSaredefinedasthereportedNetIncomeandEPSasadjustedbythefollowing
factors:
• Restructuringcosts,significantcapitalgains/lossesfromthesaleofcompanies,goodwillimpairmentchargesand
materialnonordinaryimpacts,inlinewiththeAdjustedEBITDAcalculation.
• Amortisationofintangibleassetsfrompurchasepriceallocationprocesses.
• The positive or negative impact in Share of Results of investments accounted for by the equity method of FX
differencesandchangesinthefairvaluesofVMO2’sderivativesrecordedinitsfinancialresults.
TheAdjustedNetIncomeandAdjustedEPSmeasuresprovideusefulinformationforthecompanyandmarketagents
because:
• It provides additional information on the underlying performance of the Group's operations, removing the
distortingeffectsofcertainfactors,astheyarespecifictoacertainmomentandnotassociatedwiththeordinary
performanceofthebusiness,facilitatingtheunderlyinganalysisofthebusiness.
• Theinclusion of thebusinessunderlying performanceis used bothinternallyand bythevarious agentsinthe
markettoconsistentlymonitortrendsandoperatingperformanceofthebusiness;thisdataalsofacilitatesthe
relation between the business performance of Telefónica and that of other operators, although the term
"adjusted"isnotatermdefinedinIFRS,andthe"adjusted"measuresincludedhereinmaynotbecomparableto
similarmeasurespresentedbyothercompanies.
ThedetailedcalculationoftheGroup'sEBITDAandEBITDAaL,thereconciliationbetweenReportedandAdjusteddata,
theorganicvariations,the reconciliationoftheGroup'sgrossfinancialdebt,netfinancialdebtandnetfinancialdebt
plus leases, the reconciliation of the Group's leverage ratio, and the reconciliation of Group's net cash flow from
operationsandtheFreecashflowcanbefoundinJan-Mar2025selectedfinancialinformation.
Furthermore,the “Alternativemeasuresnot defined inIFRS”are detailed intheNote 2 oftheconsolidated financial
statementspublishedbytheGroupfor2024.
23
DISCLAIMER
ThisdocumenthasbeenpreparedbyTelefónica,S.A.(“Telefónica”orthe“Company”,andtogetherwithitssubsidiaries
the “Telefónica Group”) exclusively for its use during the presentation of financial results. The Company does not
assumeanyliabilityforthecontentofthisdocumentifusedforanypurposesdifferentfromtheoneoutlinedabove.
Thisdocumentmaycontainforward-lookingstatements(includingforward-lookingstatementswithinthemeaningof
thesafe-harborprovisionsof thePrivate SecuritiesLitigationReformActof1995).Theseforward-lookingstatements
may include financial and other forecasts and estimates, as well as statements regarding plans, objectives and
expectationsoftheTelefónicaGroup.Theforward-lookingstatementscanbeidentified,incertaincases,throughthe
useofwordssuchas“will,”“shall,”“target,”“expect,”“aim,”“hope,”“anticipate,”“should,”“may,”“might,”“assume,”
“estimate,”“plan,”“risk,”“intend,”“believe”andsimilarlanguageorotherformulationsofasimilarmeaningor,ineach
case, the negative formulations thereof. Other forward-looking statements can be identified in the context in which
suchstatementsaremadeorbytheforward-lookingnatureofdiscussionsofstrategy,plans,objectivesorintentions.
Theseforward-lookingstatementsincludestatementsregardingourintent,belieforcurrentexpectationswithrespect
to,amongotherthings,theeffectonourresultsofoperationsofcompetitionintelecommunicationsmarkets;trends
affecting our business, financial condition, results of operations or cash flows; ongoing or future acquisitions,
investmentsordivestments;ourcapitalexpendituresplan;ourestimatedavailabilityoffunds;ourabilitytorepaydebt
with estimated future cash flows; our shareholder remuneration policies; supervision and regulation of the
telecommunications sectors where we have significant operations; our environmental, social and governance
commitmentsandtargets;ourexistingorfuturestrategicpartnershipsorjointventures;thepotentialforgrowthand
competitionincurrentandanticipatedareasofourbusiness;andtheoutcomeofpendingorfuturelitigationorother
legalproceedingsandinvestigations.
Anysuchforward-lookingstatementsreflectthecurrentviewsoftheTelefónicaGroup’smanagementandmaychange
over time. They do not intend to be exhaustive, and they have not been verified or audited by any third party.
Telefónica'sopinionsandaspirationswithrespecttofutureeventsdonotrepresentanyguaranteeoffuturefulfilment
orprofitability,andtheyaresubjecttorisksanduncertaintiesthatcouldcausethefinaldevelopmentsandresultsto
materially differ from those expressed or implied by such forward-looking statements. These risks and uncertainties
include those identified in the documents containing more comprehensive information filed by Telefónica with the
relevantsupervisoryauthoritiesofthesecuritiesmarketsinwhichitsshares arelistedand,inparticular,theSpanish
NationalSecuritiesMarketCommission(“CNMV”)andtheU.S.SecuritiesandExchangeCommission(“SEC”).
Youarecautionednottoplaceunduerelianceonanyforward-lookingstatementscontainedinthisdocument.Exceptas
required by applicable law, Telefónica does not assume any obligation to publicly update the forward-looking
statements to adapt them to events or circumstances taking place after the date hereof, including, among others,
changesintheTelefónica’sGroupbusiness,changesinitsbusinessdevelopmentstrategyoranyothercircumstances.
Thisdocumentmaycontainsummarised,non-auditedornon-IFRSfinancialinformationSuchinformationmaynotbe
preparedinaccordancewiththefinancialreportingrequirementsestablishedbytheSEC,ispresentedforsupplemental
informationalpurposesonlyandshouldnotbeconsideredasubstituteforauditedfinancialinformationpresentedin
accordance with IFRS. The Company’s non-IFRS financial measures may differ from similarly titled measures used by
othercompanies.Inaddition,therearemateriallimitationsassociatedwiththeuseofnon-IFRSfinancialmeasuressince
they exclude significant expenses and income that are recorded in the Company’s financial statements. Information
related to any alternative performance measures (APMs) used in this document are included in the Appendix
“Alternativeperformancemeasures”,page21ofthisdocument.Thisdocumentalsocontainssustainabilityinformation,
thatmayincludeenvironmental,socialandgovernance-relatedmetrics,statements,goals,commitmentsandopinions.
The sustainability information has been prepared with various materiality analyses, estimates, assumptions and data
collectionandverificationpracticesandmethodologies,bothexternalandinternal,whichmaydifferfromthoseusedby
othercompanies.
Moreover,theinformationcontainedhereinshouldbeconsideredonlytogetherwithTelefónica’sconsolidatedfinancial
statementsandconsolidatedmanagementreportfor2024,submittedtotheCNMV,inNote2,page15ofthe.pdffiled.
Recipientsofthisdocumentareinvitedtoreadit.
Neither this document nor any of their contents constitute an offer to purchase, sell or exchange any security, a
solicitation of any offer to purchase, sell or exchange any security, or a recommendation or advice regarding any
security,orasolicitationforanyvoteorapprovalinanyotherjurisdiction.
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FOLLOWUS:
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