Telefonica 1Q net loss EUR411M

Telefonica reported a net loss of €411 million for the first quarter of 2026, driven primarily by the sale of its operations in Argentina and Peru, as well as the depreciation of the Brazilian real according to financial reports. This marked a significant shift from a net profit of €533 million in the same period of the previous year. The company's reported revenue for the quarter fell 2.9% year over year to €9,221 million, impacted by unfavorable foreign exchange rate movements. However, organic revenue growth of 1.3% was achieved, supported by strong performance in its B2C and B2B segments.

The company's strategic focus on reducing exposure to its Hispam operations continued, with the sale of its stake in Argentina and the initiation of the sale of its shares in Telefonica Colombia according to earnings analysis. These moves align with Telefonica's broader strategy to concentrate on profitable, scalable markets and optimize its portfolio.

Despite the net loss, Telefonica reaffirmed its full-year guidance, maintaining its target for organic growth in revenues, EBITDA, and EBITDAaL–CapEx, while aiming to keep CapEx as a share of sales below 12.5% and reduce leverage as stated in official guidance. The company also confirmed a cash dividend of €0.30 per share for 2026, to be paid in two tranches according to financial reports.

Telefonica Brasil, a key subsidiary, reported strong operational performance in the first quarter, with revenue growth of 7.4% year over year and a 19.2% increase in net income. However, the company significantly missed earnings per share expectations, contributing to a 4.49% decline in premarket trading. Despite this, Telefonica Brasil's long-term strategic initiatives, including digital transformation and shareholder remuneration, remain intact.

The company's leadership emphasized that the first-quarter results reflect typical seasonality and that performance is expected to improve throughout the year.