Telefónica loses 1.304 billion euros until March due to Latin America, according to Marc Murtra's first accounts.

The sale of part of the Latin American business has affected the first results of Marc Mutra 's time as president of Telefónica . The Spanish company recorded losses of €1.304 billion between January and March, including businesses that are no longer part of the company's reach (Argentina and Peru), compared to profits of €533 million in the same period last year.

Complexity is the focus of the first-quarter accounts. The net result comparable to the same period last year is the aforementioned loss, but there are nuances here. Considering only continuing operations, that is, businesses that remain within the group, the accounts show a profit of 427 million (compared to 576 million a year ago). However, the result is significantly impacted by discontinued operations, those that are no longer part of the group, which include Argentina and Peru, subsidiaries already sold, which show losses of 1.731 billion (compared to 44 million a year ago), according to the financial report.

Argentina and Peru have been sold in these first months of 2025, with significant impacts on the income statement. In Argentina's case, it accounts for the bulk of the losses, with a negative €1.2 billion, most of which is due to accumulated negative translation differences, that is, the effects of the devaluation of that country's currency. In Peru's case, the losses are €500 million, mainly due to the impact of the loan granted, the capital loss from the sale, and the company's results.

The telecommunications company emphasizes in a press release that these results are " marked by the ratification of financial targets for the full year and the strengthening of business in core markets." Furthermore, they are reflected in the organic improvement in revenue and EBITDA in the first three months of the fiscal year.

"First-quarter results meet our expectations, while free cash flow reflects the usual seasonality. The group's results will improve throughout the year, in line with our 2025 outlook. During the second half of the year, we will present the conclusions of the strategic review we are conducting," emphasized Emilio Gayo, CEO of Telefónica. The company, under the leadership of Marc Murtra, is currently conducting a strategic review that will lead to a new roadmap. Everything seems to indicate that it will significantly reduce its exposure to Latin America (as is already being done) and will seek to become a key player in the consolidation of the sector in Europe.

For its shareholders, Telefónica has confirmed a cash dividend of €0.30 per share for 2025, payable in two installments: the first on December 18th (€0.15) and the second in June 2026 (€0.15). The second installment of the 2024 dividend, also €0.15 per share in cash and still pending payment, will be distributed on June 19th.

"Telefónica reported organic revenue growth of 1.3% in the first quarter, totaling €9.221 billion, driven by strong revenue performance in its business (+5.4%) and residential (+1.8%). On a reported basis, revenue fell 2.9%, impacted by the exchange rate effect, which subtracted 4.1 percentage points," the company said, adding: "Adjusted EBITDA reached €3.014 billion and registered an organic increase of 0.6%, although it fell 4.2% in reported terms due to the impact of foreign currency, which decreased 4.4 percentage points."

Telefónica highlights the "positive performance of its core markets, which has led to a strengthening of its leadership in the various countries." In organic terms, Telefónica Spain recorded revenue and EBITDA increases of 1.7% and 1%, respectively; Telefónica Brazil grew above inflation, both in revenue (+6.2%) and EBITDA (+8%); and Telefónica Germany improved operationally, "thanks to the company's strong commercial momentum," and achieved a 4.8% increase in operating cash flow (EBITDA - CapEx), although revenue and EBITDA fell by 2%. In real reported terms, only Spain recorded improvements in revenue and EBITDA, while the other regions were negative, in the case of Latin America due to the currency effect.

Thus, this first quarter was significantly affected by the year-on-year depreciation of the Brazilian real against the euro. "The negative impact of exchange rate movements is €388 million in revenue and €138 million in EBITDA," the report states.

In terms of liabilities, net financial debt has decreased by €112 million since December and stood at €27.049 billion at the end of the quarter. Regarding customers, Telefónica closed the first quarter with a base of 354 million accesses and growth in FTTH (fiber) and mobile contract customers of 9% and 1%, respectively.