Telefónica has announced a robust financial performance for the year’s first half, with notable revenue and EBITDA growth. It also unveiled a strategic joint venture with Vodafone Spain focused on fiber optic expansion.
The company reported a significant acceleration in revenue growth in the second quarter of 2024. Revenue for the period between April and June increased by 1.2%, totaling EUR 10,255 million. This growth was driven primarily by a 2.2% rise in service revenue. For the year’s first half, revenue grew by 1.1%, reaching EUR 20,395 million.
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EBITDA also showed positive results. In the second quarter, EBITDA increased by 1.8% across all geographical regions, totaling EUR 3,219 million. For the first half of 2024, EBITDA grew by 1.9% to EUR 6,424 million.
In addition, Telefónica Tech, the company’s digital and technological services division, ended the first half of the year with a remarkable 11.1% revenue growth, amounting to EUR 984 million. Telefónica’s customer base reached 392 million, reflecting a 2.2% year-over-year increase. Fiber accesses grew by 12.1%, and mobile contract customers increased by 3.3%.
Encouraged by these results, Telefónica has confirmed its financial targets for 2024. José María Álvarez-Pallete, Chairman of Telefónica, expressed confidence in the company’s trajectory, “Revenues are growing, EBITDA is up, and our customer base is larger and more satisfied with the service we provide. Telefónica is a more profitable and sustainable company, meeting the pillars of our GPS strategic plan. We are reaffirming our financial targets 2024 and ensuring attractive shareholder remuneration.”
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In a strategic move to expand its fiber optic infrastructure, the Spanish giant has entered into a joint venture with Vodafone Spain. The new venture aims to build and operate a fiber optic network covering approximately 3.5 million premises across Spain.
Eamonn O’Hare, Chairman and CEO of Zegona, commented on the collaboration, “Creating a new FiberCo in partnership with Telefónica is a key milestone in our plan to transform Vodafone Spain. This transaction complements the MASORANGE FiberCo we announced last week and provides Vodafone Spain with guaranteed access to advanced networks with favorable economic terms. Transitioning Vodafone Spain to these new FiberCo structures is expected to generate substantial incremental value for all Zegona stakeholders.”
FibreCo’s initial ownership will be based on the customer numbers within the designated footprint. The plan is to introduce a third-party financial investor into the share capital of this innovative venture. Telefónica will retain majority ownership, while Zegona, Vodafone Spain’s parent company, is expected to hold a 10% stake.
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