Telefonica Books Q3 Gains As Revamp Makes Impact

Telefonica credited disciplined execution of a five-year strategic plan unveiled in 2025 for improved financial performance in Q3, when it booked increased revenue and profit.

In its results statement, the operator group highlighted growth in key financial metrics had been driven by the performances in its home market of Spain along with Brazil.

Telefonica’s Spanish business reported increased subscriptions across fixed, mobile and TV with churn apparently at historic lows, while in Brazil it pointed to an increased customer base and adoption of its converged offering.

In Germany it reported declines in revenue and EBITDA, though highlighted progress with efforts to “simplify its operating model” and boost profitability, while UK JV Virgin Media O2 (VMO2) revealed drops in the same metrics when it released its results earlier this month.

Telefonica noted VMO2 posted results in line with forecasts and had announced a new “strategic direction” which includes achieving £800 million in annual savings by 2029. Half of this sum is set to be cut in 2027.

COO Emilio Gayo said Telefonica is “pleased to announce another strong set of results”, adding “we are undergoing a comprehensive transformation process to boost our competitiveness”.

He pointed to an “almost complete exit” of markets which used to make up its Hispam division covering Latin America, alongside restructuring measures in Spain, Germany and elsewhere.

Gayo added delivery of efficiencies in its units came from “a more simplified operation model, AI, digitalisation, automation [and] legacy shut-downs”.

Aside from cutting costs, he noted the company is “developing new sources of growth” in areas including B2B digital services, wider products in B2C, sovereign digital infrastructure, edge computing, AI services and its AI Gigafactory initiative.

Net profit of €802 million was up 191% year-on-year and revenue increased 4.8% to €8.4 billion.

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