In November 2023, Telefonica CEO Jose Maria Alvarez-Pallete unveiled the company’s new strategic plan that aims to achieve a 10 percent increase in free cash flow and a 2 percent rise in core earnings per year by 2026. The first quarter of the year saw an impressive 79 percent increase in net income, reaching €532 million. Although revenue remained relatively stable at €10.1 billion, net debt rose by 7.7 percent to €28.5 billion, primarily due to the acquisition of a larger stake in its German unit. EBITDA also grew by 1.9 percent to €3.2 billion.
Despite the positive financial figures, free cash flow remained negative at €41 million, which was a crucial metric for the company’s new Growth, Profitability, and Sustainability plan. However, Pallete highlighted that Telefonica had made significant progress towards its strategic goals and had reinforced itself through the implementation of a new roadmap and plan, leading to improved revenue and commercial activity.
In addition to these achievements, 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. This news further strengthens Telefonica’s position as a leading telecommunications provider in Europe and beyond.
Overall, Pallete expressed his confidence that Telefonica would continue to make progress towards its strategic goals and deliver strong financial results for its shareholders in the years ahead.
