Telefónica has released its financial results for the first half of 2024, showcasing solid revenue growth, improved profitability, and significant progress on strategic initiatives. The telecommunications giant reported a net income of €979 million, marking a 28.9% increase compared to the same period last year. Telefónica’s performance aligns with its GPS strategic plan, emphasizing growth, profitability, and sustainability.
Revenue for the second quarter grew by 1.2% to €10,255 million, while the first half saw a 1.1% increase to €20,395 million. Operating income before depreciation and amortization (EBITDA) also showed positive trends, rising by 1.8% in Q2 to €3,219 million and by 1.9% in the first half to €6,424 million. The company has reaffirmed its financial targets for 2024, projecting revenue growth of around 1%, EBITDA and operating cash flow growth between 1% and 2%, and a CapEx over revenue ratio of up to 13%.
Key Points:
• Revenue Growth: Increased by 1.2% in Q2 to €10,255 million and by 1.1% in H1 to €20,395 million.
• EBITDA: Grew by 1.8% in Q2 to €3,219 million and by 1.9% in H1 to €6,424 million.
• Financial Targets for 2024:
• Revenue growth of around 1%.
• EBITDA and operating cash flow growth between 1% and 2%.
• CapEx over revenue ratio up to 13%.
• Free cash flow increase of more than 10%.
• Shareholder Remuneration: Confirmed dividend of €0.30 per share, payable in two tranches of €0.15 each in December 2024 and June 2025.
• CapEx: €2,299 million in the first half, down 3.9% from the same period in 2023, maintaining an investment-to-revenue ratio of 11.3%.
• Customer Base: Reached 392 million, a 2.2% year-over-year increase, with significant growth in fiber accesses (+12.1%) and mobile contract customers (+3.3%).
• 5G Expansion: Spain achieved 89% population coverage, Germany 96%, Brazil 50%, and the UK 65%. 5G Stand Alone has been commercially launched in the four major markets.
• Sustainability: Telefónica named one of the Top 10 World’s Most Sustainable Companies by TIME magazine and ranked as a sector leader in the FTSE4Good Index Series.
