Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleTelefonica said Q4 adjusted EBITDA rose 2.8% to €3.2bn, driven by Spain and Brazil, helping meet annual targets. Full-year net loss reached €4.15bn due to disposals, a Spain redundancy plan and a UK impairment.
By David Latona
MADRID, Feb 24 (Reuters) - Spain's Telefonica on Tuesday welcomed signs that European regulators might be warming to the type of consolidation deals it hopes to pursue, as it vowed to continue cutting debt and selling non-core businesses in Latin America.
A five-year plan from CEO Marc Murtra, who took the helm a year ago, keeps the focus on the telecom group's core markets of Spain, Brazil, Britain and Germany, and envisions deals that would largely depend on EU regulators taking a softer line.
"The feeling is that there has been progress," Murtra told reporters, citing recent statements by European Commission President Ursula von der Leyen and the head of the European Council, Antonio Costa, that signalled an interest in telecoms sector consolidation to boost investment and innovation.
Murtra did not give details of potential deals and added the plans would only materialise "if there's a practical change in the (EU's) M&A policy", but said he was optimistic.
Telefonica did not, however, plan to deviate from its goal of decreasing leverage should M&A opportunities arise, he added.
LATAM EXIT ALMOST COMPLETE
After shedding units in Chile and Colombia this quarter, only Venezuela and Mexico remain out of Telefonica's non-core businesses in Latin America.
Murtra said the roadmap for exiting Venezuela was unchanged despite the U.S. ouster of President Nicolas Maduro in January, but added that better economic conditions and Caracas' more open approach to foreign businesses could help improve the value of Telefonica's assets there.
A Mexican exit remained complex, he added, due to an ongoing dispute over tax arrears worth about $250 million that is being litigated at the country's Supreme Court.
The slew of Latin American asset sales hit Telefonica's balance sheet in 2025. It posted a net loss of 4.3 billion euros, partly due to the sale of businesses in Argentina, Peru, Ecuador and Uruguay.
Murtra said the losses were an accounting matter, with no bearing on the company's ability to generate cash in the medium term.
HIGHER GROWTH, LOWER DEBT SEEN IN 2026
Telefonica said it expects adjusted core profit to grow between 1.5% and 2.5% in 2026, with revenues seen rising by the same range.
Its shares were little changed at 1530 GMT. They earlier rose after the company reported a pickup in core profit growth in the fourth quarter, helping it meet annual targets thanks to strong performances in Brazil and Spain.
Telefonica confirmed it would pay a cash dividend of 0.15 euros per share for this year in June 2027. Last November, it said it would halve this year's payouts to reduce its net debt to annual core earnings ratio, which it targets at around 2.5 times by 2028.
It added that the capital spending to revenue ratio this year would fall to around 12% from 12.4% in 2025.
($1 = 0.8492 euros)
(Reporting by David Latona. Editing by Louise Heavens, Hugh Lawson and Mark Potter)
Telefonica’s fourth-quarter performance, highlighting a 2.8% rise in adjusted EBITDA to €3.2bn, strong results in Spain and Brazil, and the company meeting its annual targets.
The €4.15bn full-year net loss stemmed from one-off items including the disposal of Latin American units, a voluntary redundancy program in Spain, and an impairment in the UK.
Adjusted EBITDA from continuing operations increased 2.8% year over year to €3.2bn, reflecting stronger operating performance in the company’s core markets of Spain and Brazil.
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