Q2 2026 Telefonica SA Earnings Call Transcript
Key Points
- Telefonica SA (TELFY) reported strong execution in the second quarter, delivering consistent and resilient growth across its strategic roadmap.
- The company achieved year-on-year growth in adjusted EBITDA and adjusted operating cash flow after leases at the group level, particularly in Spain and Brazil.
- Free cash flow reached EUR611 million in the quarter, showing a significant increase of EUR278 million from the previous quarter.
- Telefonica SA (TELFY) has further deleveraged, reducing net financial debt to EUR25.3 billion, and improved its operating leverage.
- The company upgraded its 2026 guidance for adjusted operating cash flow after leases from over 2% to over 3%, reflecting confidence in its financial performance.
- Telefonica SA (TELFY) expects to be at the low end of its revenue growth range due to weakness in handset sales, particularly in Germany.
- The company faces challenges in the German market with a decline in revenue over 11% year-on-year, mainly due to lower handset sales.
- Despite maintaining adjusted EBITDA guidance, Telefonica SA (TELFY) is cautious about the timing and execution of its transformation plan in Germany.
- The competitive environment in Spain remains intense, particularly in the lower value segment, which could impact future growth.
- Telefonica SA (TELFY) is dealing with high leverage in its UK operations, with a focus on deleveraging to reach a more sustainable range.
Yes, please.
Good morning.
Thank you for standing by and welcome to Telefonica's January to June 2026 results conference call.
At this time, all participants are in a listen-only mode.
Later, we will conduct a question-and-answer session.
If you'd like to ask a question, please press followed by 11 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again.
We would kindly ask you to ask a maximum of two questions per participant.
As a reminder, today's conference is being recorded.
I would now like to turn the call over to Mr. Torsten Achtmann, Global Director of Investor Relations. Please go ahead, sir.
Good morning, and welcome to Telefonica's conference call to discuss January to June 2026 results.
I'm Torsten Achtmann from Investor Relations.
Before proceeding, let me mention that the financial
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