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Telefonica, S.A. TEF reported a fourth-quarter 2024 net income of €425 million, which plummeted 41.8% year over year. Furthermore, basic earnings per share (EPS) were €0.06 compared with €0.12 in the year-ago quarter.
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Quarterly total revenues increased 5.4% year over year to €10,701 million, driven by strong business performance and positive commercial momentum in key markets. This growth was reflected across major segments, with residential revenues rising 6.5% and the business segment up 10%.
For 2024, revenue increased 1.6% year over year, reaching €41,315 million, exceeding the initial target of around 1% growth.
Results by Business Units
Telefonica Espana: Quarterly revenues in Spain increased 1.3% year over year on a reported basis to €3,364 million, driven by an 8.9% increase in handset sales following successful Black Friday and Christmas campaigns, along with steady service revenue growth of 1%. The quarterly adjusted EBITDA grew 1% to €1,255 million, owing to higher revenues and cost-saving measures, including the staff reduction and network upgrades carried out in the first quarter.
Telefonica Deutschland: Quarterly revenues fell 3.7% to €2,205 million due to sluggish trends across the mobile business amid growth in the fixed business. The quarterly adjusted EBITDA margin was 33.4%. Capital expenditure (CapEx) rose 8.2% to €343 million in the quarter.
VirginMedia-O2 U.K.: Quarterly revenues inched down 0.1% to €3,263 million. The quarterly adjusted EBITDA margin was 36.6%. CapEx grew 23.2% to €661 million in the quarter.
Telefonica Brasil: Quarterly revenues in Brazil decreased 7.4% to €2,350 million due to forex headwinds. The quarterly adjusted EBITDA declined 6.9% to €1,050 million. CapEx decreased 7.8% to €397 million in the quarter.
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Telefonica Infra (Telxius): The unit expanded its FTTH coverage to 25 million premises. Telxius, Telefonica’s submarine cable unit, maintained high profitability with an EBITDA margin of 48%.
Telefonica Tech: Revenues increased 11.1% year over year to €612 million, fueled by strength in cybersecurity and IoT business, mainly in the Private Sector. Its strong sales momentum and the rapidly expanding open funnel, which continues to grow at a double-digit rate, are expected to have a positive impact throughout 2025.
Telefonica Hispam: Quarterly revenues in the Telefonica Hispam segment climbed 47.1% to €2,432 million, mainly due to a lower comparison base from the prior-year quarter, which was affected by the ARS depreciation. Other factors included the adoption of a new exchange rate in Venezuela and the one-time revenue recorded in the prior-year quarter from exclusivity deals with ONNet Chile and Colombia.