Telefonica CEO Achieves Significant Growth and Profitability through Strategic Plan Implementation

Telefonica CEO Jose Maria Alvarez-Pallete highlighted the initial success of implementing the company’s new strategic plan through to 2026. The operator saw a 79 per cent increase in net income, reaching €532 million, in the first quarter of the year. Although revenue remained relatively stable at €10.1 billion, net debt rose by 7.7 per cent to €28.5 billion, largely due to the acquisition of a greater stake in its German unit. EBITDA also grew by 1.9 per cent to €3.2 billion. However, free cash flow, a crucial metric for its new Growth, Profitability, and Sustainability plan, was negative at €41 million.

The new strategic plan, unveiled in November 2023, aims for a 10 per cent increase in free cash flow and a 2 per cent rise in core earnings per year until 2026. Pallete noted that Telefonica had a strong start to the year, with the business reinforcing itself thanks to the implementation of a new roadmap and strategic plan, leading to improved revenue and commercial activity.

In addition to the financial figures, Telefonica announced a non-binding mobile network wholesale agreement with Romanian operator Digi Communications. A final agreement is expected to be disclosed in the coming weeks as their current deal is set to expire in September 2026.

Pallette stated that Telefonica has been able to achieve significant growth and profitability through its new strategic plan. The company has focused on improving its operations and reducing costs while increasing revenue streams through expansion into new markets.

Telefonica has also been working on developing new technologies such as artificial intelligence and automation to improve its service offerings and better meet customer needs.

Overall, Pallete believes that Telefonica is well-positioned for continued growth and success over the next few years as it continues to implement its strategic plan.

In conclusion, Telefonica’s CEO Jose Maria Alvarez-Pallete highlighted the initial success of implementing its new strategic plan through to 2026. The operator saw significant growth in net income and EBITDA while maintaining relatively stable revenue figures despite an increase in net debt due to acquisitions. Free cash flow was negative but remains an important metric for achieving long-term goals under their new Growth, Profitability