Telefónica returned to profit in the first nine months of 2026. The Spanish telecommunications group made a Net profit of 464 million euros from January to September. In the same period last year, it had recorded a loss of 1.08 billion euros. This is according to the business figures published on 12 November, reported by Spanish business newspaper Cinco Días, among others.
The third quarter was the main contributor to the result. From July to September, net profit reached 802 million euros, almost three times as much as a year earlier. Continuing operations made a profit of 1.33 billion euros in the first nine months. This was offset by a loss of around 870 million euros from discontinued operations.
The Revenue from continuing operations totalled 24.83 billion euros by the end of September. On a comparable basis, it rose by 2.8 per cent year on year at actual exchange rates. At constant exchange rates, the increase was one per cent. Adjusted earnings before interest, tax, depreciation and amortisation rose by 4.6 per cent to 8.85 billion euros at actual exchange rates.
Telefónica revised its full-year forecasts in different directions. The company now expects revenue to grow by one to 1.5 per cent, having previously targeted 1.5 to 2.5 per cent. By contrast, the group expects adjusted earnings before interest, tax, depreciation and amortisation to rise slightly above 2.5 per cent. It had previously given a range of 1.5 to 2.5 per cent. The targets are based on constant exchange rates.
Telefónica also raised its forecast for free cash flow from continuing operations: it is expected to reach around 3.1 billion euros for the full year, instead of the previously forecast three billion. Put simply, free cash flow is the money left after spending on day-to-day operations and investment.
In Spain revenue rose by 2.5 per cent to 9.83 billion euros in the first nine months. Also, Brazil grew in the third quarter, while in Germany revenue and adjusted operating profit fell. The group’s net financial debt stood at 25.19 billion euros at the end of September, around 1.6 billion euros less than at the start of the year.
The board also confirmed a cash dividend of 0.15 euros per share for the 2026 financial year. Payment in June 2027 is subject to approval by the General Meeting.
Editor: Daniel Mayer (Article created with AI assistance).