Financial Data and Key Metrics Changes - Revenue reached almost EUR 9 billion in the quarter, growing 1.5% organically [14] - EBITDA was nearly EUR 3 billion, up 1.2% [14] - Free cash flow turned positive to EUR 5 million in the second quarter, an improvement of EUR 718 million versus Q1 [14] - Net financial debt decreased 5.5% year on year to EUR 27.6 billion as of June [15] - Earnings per share from continued operations amounted to EUR 0.07 in the second quarter [15] Business Line Data and Key Metrics Changes - In Spain, the company achieved its best Q2 net adds since Q3 2018, with a convergence churn rate of 0.8%, the lowest in over 11 years [23][24] - Brazil saw a 6% increase in contract accesses and a 42% increase in revenue from cloud services [30] - Telefonica Deutschland reported a decline in EBITDA by 6% year on year, primarily due to the migration of the one on one customer base [34] Market Data and Key Metrics Changes - Spain and Brazil together represent 70% of group EBITDA, showing improving trends this quarter [15] - The UK market remained competitive, with Virgin Media O2 focusing on customer loyalty and protecting value [36] - In Germany, the mobile service revenue declined year on year, reflecting the impact of the one on one customer migration [34] Company Strategy and Development Direction - The company is focused on customer-centric strategies, operational excellence, and creating value under strict financial discipline [8] - Strategic choices are aimed at strengthening the competitive position in the European telecom industry [8] - The company is concentrating resources in select markets where it has competitive advantages, as evidenced by the sales of operations in Argentina, Peru, and other Latin American countries [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation at Telefonica, which is expected to create value for shareholders [8] - The company reiterated its full-year 2025 guidance across metrics, expecting revenue and EBITDA to continue growing [17] - Management acknowledged the variable macro environment but emphasized the focus on managing controllable factors [8] Other Important Information - The completion of the copper shutdown in Spain marks a significant milestone, freeing up resources for other endeavors [10] - The company aims to achieve a simplified organization that can move faster and compete more effectively [13] - Telefonica has been recognized for its sustainability efforts, being named the second most sustainable company in the world by Time Magazine [46] Q&A Session Summary Question: Expectations for growth in Spain and the UK - Management aims for revenue growth in Spain to exceed 2024 levels, driven by improved customer experience and B2B momentum [53] - In the UK, management acknowledged the competitive market and emphasized ongoing efforts to manage retention and prevent churn [68] Question: Strategic review and balance sheet considerations - Management stated that leverage is relevant but not strategically limiting, emphasizing the importance of maintaining investment-grade ratings [79] - The company is looking to take calculated risks to achieve larger economies of scale [81] Question: Cybersecurity and technology investments - Management highlighted the changing conditions in the cybersecurity market driven by European political will and defense investments [65] - The company is exploring opportunities in technology but does not see a need for significant CapEx in cybersecurity at this time [106] Question: Updates on fiber path stake sale and infrastructure ownership - The fiber path sale process is ongoing and not part of the strategic review [106] - Management believes that owning core infrastructure is essential for operational efficiency and service offerings [115]

Financial Data and Key Metrics Changes - Revenue reached almost EUR 9 billion in Q2 2025, growing 1.5% organically, while EBITDA was nearly EUR 3 billion, up 1.2% [14][15] - Free cash flow turned positive at EUR 5 million in Q2, an improvement of EUR 718 million compared to Q1, with a total of EUR 291 million in the first half [14][44] - Net financial debt decreased by 5.5% year on year to EUR 27.6 billion as of June [15] Business Line Data and Key Metrics Changes - In Spain, the company achieved its best Q2 net adds since Q3 2018, with a convergence churn rate of 0.8%, the lowest in over eleven years [16][23] - Brazil reported a 6% increase in contract accesses and a 42% increase in revenue from cloud services, with overall revenue growth of 7% [28][29] - Germany faced challenges due to the B2B transformation, but maintained solid consumer momentum with stable contract churn at 0.9% [32] Market Data and Key Metrics Changes - Spain and Brazil together represent 70% of group EBITDA, showing improving trends in Q2 [15] - The UK market remained competitive, with O2 contract churn improving to 1% [35] - The Hispan region posted positive contract net adds for the second consecutive quarter, driven by improved network quality in Colombia [39] Company Strategy and Development Direction - The company is focused on customer-centric strategies, operational excellence, and creating value through disciplined financial management, prioritizing Europe and Brazil [8][10] - A strategic review is underway, with plans to unveil conclusions in the second half of the year [8][48] - The company aims to simplify its organization and concentrate resources in select markets where it has competitive advantages [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation at Telefonica, which is expected to create shareholder value and strengthen competitive positioning [8][10] - The company reiterated its full-year 2025 guidance across metrics, expecting revenue and EBITDA to continue growing [17][18] - Management acknowledged foreign exchange headwinds but remains optimistic about free cash flow improvement in the second half of the year [14][18] Other Important Information - The completion of the copper shutdown in Spain marks a significant milestone, allowing for resource reallocation [10][11] - The company has been recognized for its sustainability efforts, being named the second most sustainable company in the world by Time Magazine [46][47] Q&A Session Summary Question: Expectations for growth in Spain and the UK - Management aims for revenue growth in Spain to exceed 2024 levels, driven by improved customer experience and B2B momentum [51][53] - In the UK, management noted various opportunities but could not disclose specifics regarding M&A plans [55] Question: Cybersecurity and tech investments - Management highlighted the changing landscape for cybersecurity in Europe, driven by political will and defense investments [60][64] - The company sees potential in capturing opportunities in cybersecurity due to its experience in integrating and managing such products [66] Question: EBITDA outlook for Germany - Management indicated that the migration of the one on one customer base is a two-year journey, with expectations for EBITDA stabilization and growth thereafter [112][117] Question: Infrastructure ownership - Management emphasized the importance of owning core infrastructure for operational efficiency and service offerings [118]