Telefónica(US:TEF)2025-07-30 11:08Financial Performance - Total revenues for the first half of 2025 were €18,013 million, a decrease of 3.3% compared to €18,634 million in the same period of 2024[14] - Operating income for the first half of 2025 was €2,109 million, down 4.5% from €2,208 million in the first half of 2024[14] - Profit for the period was a loss of €1,286 million, compared to a profit of €1,044 million in the same period of 2024[17] - Basic and diluted earnings per share attributable to equity holders of the parent were €(0.26), down from €0.14 in the first half of 2024[14] - EBITDA for the first half of 2025 was reported at 5,895 million euros, down from 6,151 million euros in the first half of 2024[59] - EBITDAaL for the first half of 2025 was 4,611 million euros, compared to 4,889 million euros in the same period of 2024[59] - The Group reported a profit for the period of (1,286) million euros, compared to a profit of 1,044 million euros in the same period of 2024[59] - Operating income fell to €333 million, down 36% from €521 million year-over-year[92] - The result for the period attributable to equity holders of the parent was a loss of €430 million, compared to a profit of €34 million in the first half of 2024[92] Assets and Liabilities - Non-current assets decreased to €73,108 million as of June 30, 2025, from €78,133 million at the end of 2024, representing a decline of 6.4%[12] - Total assets decreased to €94,369 million as of June 30, 2025, down from €100,502 million at the end of 2024, a reduction of 6.1%[12] - Equity attributable to equity holders of the parent decreased to €17,283 million as of June 30, 2025, from €19,347 million at the end of 2024, a decline of 10.7%[12] - Current liabilities remained relatively stable at €25,125 million as of June 30, 2025, compared to €25,734 million at the end of 2024[12] - The total carrying amount of financial assets as of June 30, 2025, was €20,366 million, compared to €22,765 million on December 31, 2024, showing a decline of approximately 10%[195] Cash Flow and Investments - Cash flow from operating activities was €4,445 million, a decrease from €4,666 million in the same period of 2024[27] - Net cash used in investing activities was €3,712 million, compared to €4,115 million in the first half of 2024[27] - The net increase in cash and cash equivalents during the period was a decrease of €1,557 million, compared to a decrease of €1,847 million in the first half of 2024[27] - The free cash flow from continuing operations for the first half of 2025 was €291 million, a decrease of 42.5% compared to €506 million in the same period of 2024[74] - As of June 30, 2025, cash and cash equivalents stood at €6,505 million, reflecting a decrease from €8,062 million at the end of 2024[195] Discontinued Operations and Sales - The company reported a significant loss from discontinued operations amounting to €1,913 million in the first half of 2025[14] - The sale of Telefónica Móviles Argentina generated €1,189 million, with a resulting loss of €79 million from the transaction[39] - The sale of Telefónica del Perú was completed for approximately €900,000, recycling negative translation differences of €222 million into 2025 results[44] - As of June 30, 2025, the results of Telefónica del Perú are classified as discontinued operations, impacting the overall financial results[49] Shareholder Equity and Dividends - Dividends paid amounted to €931 million, slightly down from €972 million in the previous year[27] - The share capital was reduced by €80,296,591 through the cancellation of own shares, resulting in a new share capital of €5,670,161,554[200] - The share premium was reduced by €230 million in relation to the capital reduction[200] Financial Ratios and Metrics - The average exchange rate for the Brazilian real decreased by 12.7% compared to the first half of 2024[38] - The Group's equity attributable to shareholders was negatively impacted by €529 million due to translation differences in the first half of 2025[38] - The net financial debt as of June 30, 2025, is calculated based on current and non-current financial liabilities, excluding cash and cash equivalents[63][68] - As of June 30, 2025, the net financial debt stood at €27,609 million, an increase from €27,161 million at the end of 2024, reflecting a rise of 1.65%[70] Impairments and Write-offs - The impairment of trade receivables increased from €106 million in December 2024 to €122 million in June 2025, reflecting a rise of 15.1%[189] - The company reported an impact of impairment of trade receivables in the consolidated income statement of €271 million for the first half of 2025, down from €302 million in the same period of 2024[191] - The Group recorded impairments in goodwill for cash-generating units in Peru, Chile, Telefónica Tech UK & Ireland, and BE-terna as of December 31, 2024[113] Strategic Initiatives - The Group's strategy includes gradually reducing exposure in Hispanoamerica, as evidenced by the classification of several subsidiaries as disposal groups held for sale[49] - VMO2 entered into a joint venture with Daisy Group to merge their B2B businesses, with VMO2 expected to own 70% of the new entity[135][136] - Telefónica Brasil signed an agreement to acquire the remaining 50% of Fibrasil for €133 million, increasing its stake to 75.01%[140]