Telefónica Reports Smaller Net Loss and Revenue Growth

Telefónica's latest report shows a narrower net loss driven by higher revenues. The company forecasts organic revenue growth for 2025, positively signaling potential stock performance.

Date: 27-02-2025

AI Rating: 7

**Earnings Report Overview**: Telefónica SA reported a narrower net loss of 1.003 billion euros in the fourth quarter, an improvement from a loss of 2.154 billion euros in the same period last year. This reflects positively on the company’s financial health, suggesting improved efficiency and potentially greater investor confidence.

The basic loss per share also decreased to 0.19 euros from 0.39 euros, indicating a more favorable outlook for shareholders.

**Revenue Growth**: The company experienced a notable revenue increase of 5.4 percent in the fourth quarter, rising to 10.701 billion euros compared to 10.153 billion euros from the previous year. This growth in revenue could significantly influence investor sentiment and stock performance as it demonstrates the company's ability to recover from prior losses.

**Profit Margins**: The adjusted EBITDA margin decreased to 32.4 percent, down from 34.2 percent last year, which may be a point of concern for some investors as it indicates reduced profitability relative to revenue. However, the adjusted EBITDA itself slightly declined, showing only a minor setback in operating performance.

**Future Outlook**: Looking ahead, Telefónica forecasts organic growth in revenue, EBITDA, and EBITDAaL-CapEx for 2025, which indicates expected improvements that might attract more investment. The planned dividend of 0.30 euros per share separated into two tranches could also provide a positive incentive for long-term investors.

Stocks: TEF