The telecom conglomerate has achieved a number of important financial guidance goals for 2024 while also continuing to strengthen its position in the Spanish market by investing more in 5G infrastructure.
After a stronger performance in the Spanish market, Telefónica's revenue increased to €41.3 billion in 2024, a rise of 1.6% that exceeded the company's expectations of around 1%. Spain had its lowest churn rate since 2013 and its first year of annual growth in all key divisions since 2018.
Last year, adjusted net income, excluding extraordinary effects, reached €2.3 billion, while net debt decreased to €27.2 billion.
The company met a number of important financial goals set for 2024. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 1.2 percent, exceeding expectations of growth of 1% to 2% annually.
Additionally, Telefónica announced a cash dividend of €0.30 per share for 2025. Of this amount, €0.15 is anticipated to be distributed in December of this year and €0.15 in June of the following year.
"As I take on the role of Chairman and CEO Telefónica, I see a company built on exceptional foundations, large customer base, world-class infrastructure, and management skills and know-how," Marc Murtra, Telefónica's chairman and CEO, said in the January-December 2024 earnings report that was posted on the company's website. "The strength of these fundamentals and the execution of the strategy are demonstrated by the Company's achievements in 2024." While continuing to improve our competitive position, we have met our financial commitments. With strong cash generation of €2.6 billion, we have sustained momentum in our core markets of Spain, Brazil, Germany, and the UK. We are in a unique position to lead in a changing landscape and a new Europe. As a result, we have a lot of opportunities to improve business performance and generate more value quickly. We enter 2025 with the goal of continuing this momentum and providing long-term value to all of our stakeholders.
Telefónica gains ground in the Spanish market.
Because of its extensive 5G network coverage, Telefónica has been consolidating its position in the Spanish market recently. Additionally, the company is intensifying efforts to increase customer loyalty, primarily through product bundles, and it has a robust fiber optic infrastructure.
Spanish revenue has increased significantly as a result of this, and customer retention rates have remained high. In Spain, the Movistar brand is especially well-known and trusted.
However, the company faces a number of obstacles in Spain, including growing competition from smaller rivals vying for low-cost plans. In addition, Telefónica needs to keep increasing its infrastructure investments in 5G technology, particularly in the highly competitive environment that exists right now.
