Telefónica has released its financial performance for the first quarter of 2024, showcasing robust growth and profitability. The company reported a net income of €532 million, marking a significant increase of 78.9% compared to the same period last year. This positive momentum aligns with the initial stages of the GPS (Growth, Profitability, and Sustainability) plan, demonstrating Telefónica’s commitment to sustainable growth.
José María Álvarez-Pallete, Chairman of Telefónica, highlighted the company’s solid start to the year, underpinned by the implementation of the GPS strategic plan, which charts Telefónica’s course until 2026. He emphasized the improvement in revenue, commercial activity, and customer satisfaction, reflecting Telefónica’s dedication to its core principles of integrity, commitment, and transparency.
Telefónica has set ambitious targets for 2024, anticipating revenue growth of approximately 1%, along with EBITDA and operating cash flow growth ranging between 1% and 2%. The company aims to maintain a CapEx over revenue ratio of up to 13% while targeting a Free Cash Flow (FCF) increase of over 10%. Shareholders can expect a cash dividend of €0.30 per share, distributed in two tranches in December 2024 and June 2025.
In terms of financial performance, Telefónica recorded solid growth rates in the first quarter, with total revenues reaching €10,140 million, driven by a 2.3% increase in service revenues. The company’s operating income before depreciation and amortization (EBITDA) strengthened by 1.9% to €3,205 million, underscoring its enhanced profitability.
Telefónica’s commitment to expanding its network infrastructure is evident through strategic partnerships, such as the non-binding Memorandum of Understanding (MOU) with DIGI for a long-term mobile network agreement. Additionally, the company remains on track with its CapEx targets, with investments reaching €1,056 million in the quarter.
Telefónica Tech and Telefónica Infra, integral components of the company’s growth strategy, showcased notable progress. Telefónica Tech reported solid revenue growth, while Telefónica Infra expanded its global connectivity platform, reaching 22 million premises and maintaining a high profitability ratio.
In terms of sustainability, Telefónica continues to advance its Environmental, Social, and Governance (ESG) objectives. Notable achievements include recognition in the CDP Supplier Leaderboard for the fifth consecutive year and the promotion of diversity and inclusion within the organization.
Telefónica remains committed to driving innovation and sustainability while delivering value to its shareholders and customers. Through strategic initiatives and a focus on operational excellence, the company aims to sustain its growth trajectory and uphold its position as a leader in the telecommunications industry.
