Telecommunications giant, Telefónica, incurs a €1.36bn loss due to asset sales in Latin America.
Telefonica's Q2 Results Show Mixed Performance Amid Currency Exchange Fluctuations
Telefonica, the Spanish multinational telecommunications company, has reported its financial results for the second quarter of 2025, revealing a mixed performance amidst currency exchange fluctuations.
Despite the drop in reported EBITDA, Telefonica's overall EBITDA for the first half of 2025 remained higher than Q2. The decline in EBITDA for Q2 was primarily due to currency exchange fluctuations, leading to a 4.8% drop compared to the same period last year and a 4.6% decline for the half-year period.
However, the company's organic revenue growth remained positive. Telefonica's revenues reached €18.01 billion in the first six months of 2025, showing a 1.5% organic growth. The enterprise (B2B) division brought in €2.02 billion, marking an organic increase of 5.2% in the second quarter. In the residential (B2C) unit, €5.32 billion was generated, up 2.1% organically. Wholesale revenues totaled €1.6 billion during the same period.
Telefonica's strong performance in certain regions was evident. Revenue growth in Spain and Brazil stood out, with a 1.9% and 7.1% increase respectively. Telefonica Spain achieved its highest net customer gain since Q3 2018 in Q2 of 2025. Telefonica Brazil posted sequential improvement in quarterly results in local currency, with revenue up 7.1% and EBITDA up 8.6%.
Telefonica Germany continued to benefit from robust mobile performance, recording a 12.1% increase in net profit compared to Q1. However, the company's net loss of €1.36 billion in the first half of 2025, primarily due to divestments in Latin America, overshadowed these gains. The specific countries in Latin America showing strong revenue growth were not identified in the results.
Adjusted EBITDA for Telefonica in Q2 was €2.92 billion, a 1.2% increase, and for the first half of 2025 was €5.86 billion, a 0.8% increase. Despite the drop in reported EBITDA due to currency exchange fluctuations, Telefonica's organic revenue growth remained positive, indicating a resilient financial performance in the face of external challenges.
