The results were as expected; consequently, two hours after the market opened, the share price was up 0.47% to €3.66 per share.
These results were more or less expected; consequently, an hour and a half after market open, Telefónica’s shares were down 0.11%, trading at €3.645 per share. According to the Bankinter analysis team, the results “are slightly lower than expected. In accounting terms, they reflect the sale of the Telefónica Hispanoamérica subsidiaries throughout the year, resulting in losses of €4,318M due to capital losses. Revenue and EBITDA growth at constant exchange rates remain positive and are gaining traction compared to Q3 2025 (Revenue up 1.3% against 0.4% in Q3, 1.5% in Q2, and 1.3% in Q1; EBITDA up 2.8% against 1.2%, 1.2%, and 0.6%).”
According to their analysis: “Spain maintains positive Revenue and EBITDA growth in Q4 (up 1.8% and 1.1% respectively), supported by a rate increase in January and a reduction in personnel and rental costs. In Brazil, revenue and EBITDA continue to grow above inflation (7.1% and 8.2%). Germany shows negative growth in a highly competitive environment following the loss of its largest wholesale client, 1&1 (down 4.0% and 14.6%).”
Financial Results SummaryNet Financial Debt (excluding leases) stands at €26,824M vsagainst €27,161M in 2024, bringing the NFD/EBITDA ratio to 2.8x (against 2.6x in 2024). For 2026, the targets announced in November’s Strategic Plan remain unchanged: Revenue, EBITDA, and Operating Cash Flow growth of 1.5%/2.5%, and a dividend reduction to €0.15 in 2026 against €0.30 over the last 3 years (resulting in a 4.1% yield). Ultimately, these are weak results, distorted by changes in perimeter and characterized by low organic growth, as previously anticipated.
Key Figures compared to Consensus (Expected)
Revenue €35,120M (down 1.5%) €36,158M
Adj. EBITDA €11,918M (down 1.6%) €11,663M
EBITDA Margin 33.9% 32.3%
Net Income (BNA) down€4,318M €432M
Free Cash Flow €2,069M €2,148M
Net Financial Debt (excluding leases): €26,824M against €30,594M expected (against €27,161M in 2024).
Revenue by Geography:
- Spain: €3,423M against €3,395M expected.
- Germany: €2,116M against €2,086M expected.
- Brazil: €2,486M vsagainst €2,464M expected.
