Telefonica Posts €1.3B Q1 Net Loss on Latin America Write-Downs

Telefonica S.A. reported a challenging first quarter in 2025 marked by a net loss of approximately €1.3 billion, primarily due to write-downs from the sale of its Argentine and Peruvian units and currency depreciation, especially the Brazilian real. Despite this, the company posted a net income of €427 million from continuing operations, down 26% year-over-year, with organic revenue growth of 1.3% driven by gains in Brazil and Spain, offset by declines in Latin America and Germany. Adjusted EBITDA stood at €3.01 billion, showing a slight organic increase of 0.6%, although reported EBITDA declined by 4.2% due to currency impacts. Capital expenditures decreased by 6.7%, focusing on network modernization, including 5G rollout and fiber expansion, while free cash flow from continuing operations was negative €205 million owing to seasonal working capital and higher lease payments. Telefonica confirmed its 2025 cash dividend at €0.30 per share and remains on track to meet its full-year guidance amid these mixed financial results. Investors are advised to approach the stock with cautious optimism given the recent performance and forecasted modest upside from current price levels.