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

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.