Telefónica earned 532 million euros between January and March 2024, which represents a 78.9% increase in the profit obtained in the same quarter of the previous year, according to the information that the company presented to the National Market Commission on Thursday. Securities (CNMV).
In it, this good evolution of the financial magnitudes is attributed to the application of the so-called GPS Plan (acronyms that in English correspond to the concepts of Growth, Profitability and Sustainability).
Revenues grew by 0.9%, to 10,140 million euros, driven by revenues from services that grew by 2.3%. Of total revenues, 61% came from the residential market. 22% comes from the corporate segment and the remaining 17% corresponds to the wholesale business, partners and other income.
In this wholesale context, Telefónica confirms in the documentation presented this Thursday that “it has signed a binding Memorandum of Understanding with Digi for a long-term mobile network agreement. “The terms and conditions are agreed in principle, and the agreement is expected to be concluded, subject to final documentation, in the coming weeks.”
The operating result before depreciation and amortization (ebitda) increased by 1.9%, to 3,205 million euros. For its part, investment grew by 2.7%, to 1,056 million euros in the quarter. “The investment to income ratio has stood at 10.4%, fully aligned with the objective of closing 2024 up to 13%.
“We have started the year showing a solid strengthening of our business supported by the deployment of our new roadmap, the GPS strategic plan, which will guide Telefónica until 2026. Revenues improve, commercial activity improves and the quality of the service we provide improves. “We provide to our customers and their satisfaction. Telefónica is moving forward firmly in its Centennial year with our principles of integrity, commitment and transparency, generating value for the shareholder,” said the president of Telefónica, José María Álvarez-Pallete.
The acquisition of the entire business in Germany has caused the company’s debt to increase to 28,428 million euros, compared to the 26,444 million registered in the same period of the previous year, in what would be the first increase in this financial indicator since the arrival of José María Álvarez Pallete to the presidency of Telefónica.
Telefónica ratifies its objectives for the end of the year, as well as shareholder remuneration for 2024, with a dividend of 0.30 euros per share that will be paid, as usual, in two tranches. One of 0.15 euros per share in December 2024 and another of the same amount in June 2025.
