Telefonica outlined financial targets through to 2026 as part of a new strategic plan, alongside revealing net income rose nearly 10 per cent during Q3.

At an investor day, the company took the wraps of its Growth, Profitability and Sustainability strategy, describing the three pillars as the cornerstones of a target to take a leading position in the digital age.

Telefonica is targeting a rise in core earnings of 2 per cent per annum until 2026, while overall revenue is expected to remain largely flat.

Capex will reduce to below 12 per cent of revenue in 2026 compared with 14 per cent this year, while it pledged to make a payment of €0.30 per share as a minimum dividend over the period.

CEO Jose Maria Alvarez-Pallete (pictured) said it had a new vision and renewed ambition to lead the future, “because we are not just a telecommunications company, we are something much bigger and better”.

He continued to state that in the new digital world, the sector urgently required complete deregulation.

“The best way to guarantee the strategic autonomy of Europe and the telco sector is a regulatory framework adapted to the new times’ needs.”

Net income up
Net income of €502 million in Q3 was up 9.3 per cent year-on-year, attributed to lower energy costs and higher network efficiency.

Revenue was flat at €10.3 billion, as growth from its Brazil and Germany units was offset by a 10.8 per cent decline in its Latin America operations.

It highlighted growth in its Telefonica Tech digital unit, with revenue up 14.4 per cent to €442 million.

The company confirmed its full-year guidance, which it revised upwards in July.