Telefonica CEO Jose Maria Alvarez-Pallete pointed to initial success in implementing its new strategic plan through to 2026, as the operator’s net income soared by 79 per cent year-on-year in the first quarter of the year.

In a Q1 2024 earnings announcement, Telefonica stated net income rose to €532 million, while revenue was broadly flat at €10.1 billion. Net debt grew 7.7 per cent to €28.5 billion, mainly due to the acquisition of an additional stake in its unit in Germany. EBITDA increased 1.9 per cent to €3.2 billion.

Free cash flow, a key metric for its new Growth, Profitability and Sustainability strategic plan, was negative at €41 million.

The new strategic plan was unveiled in November 2023, with the company targeting an increase of 10 per cent in free cash flow, in addition to a 2 per cent rise in core earnings per annum until 2026.  

Pallete said Telefonica had started the year with a solid strengthening of its business, supported by the deployment of a new roadmap and its strategic plan, pointing to improved revenue and commercial activity.

in addition to the numbers, Telefonica announced it has signed a non-binding mobile network wholesale agreement with Romanian operator Digi Communications, with a final agreement to be announced in the next few weeks. The pair’s current deal is set to end in September 2026.