Telefónica's Dividend Halved, Future Growth Strategy Unclear Amid Financial Challenges

Wednesday, Nov 5, 2025 4:19 am ET1min read

Telefónica has halved its dividend starting next year due to plateauing cash flow and significant debt. The operator expects €2bn in free cash flow in 2026, a third less than expected. Revenue and operating profit are lagging behind inflation, and net debt remains high at €28.3bn. The company's new chairman, Marc Murtra, plans to focus on external growth in Europe, but questions remain about Telefónica's ability to finance this strategy given its financial state.

Telefónica's Dividend Halved, Future Growth Strategy Unclear Amid Financial Challenges

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