- Q1 net income falls 26% year-on-year despite core market resilience
- CEO Marc Murtra pledges to focus on Europe and tech streamlining
What happened: Key financial losses and Latin America exit
Telefónica reported a net loss of approximately $1.4B in Q1 2025 following significant asset writedowns in Latin America. The company took a $1.3B impairment in Argentina and a $560M hit in Peru as part of its ongoing effort to reduce exposure in the region. Despite these losses, revenue was $10B, down 2.9% year-on-year, with stable growth in Spain, Brazil, and Germany.
The telco has completed the sale of its Argentine operations and agreed to sell its Colombian business, while rumours persist about a possible divestment in Chile. Net income from continuing operations dropped 26% to about $480M, reflecting the challenging Latin American environment but solid performance in core markets.
Also read: Telefónica Tech joins SpyCloud to boost cyber intelligence
Also read: Telefónica sells Peruvian unit to Integra Tec
Why it’s important
New CEO Marc Murtra is leading a strategic review that will prioritise focusing on Europe, technological excellence, and operational simplification. This marks a shift away from the previous expansion in Latin America towards consolidating strength in established markets. The review’s conclusions are expected to be announced in the second half of 2025.
COO Emilio Gayo affirmed that first-quarter results were in line with expectations and expressed confidence in improved performance throughout the year. The company’s pivot reflects broader telecom trends where volatility in emerging markets prompts a strategic focus on innovation and efficiency in more stable regions.
