Spain Telecom releases Q1 financial report, quarterly loss due to divestment of Latin American business

Source: Global Markets Report

Telefónica, the Spanish telecommunications company, released its financial results for the first quarter of 2026 on May 14. According to the report, the company posted a net loss for the quarter due to asset disposals related to the divestiture of its Latin American businesses, but its core operating figures were largely in line with market expectations.

According to the financial data, from January to March this year, at constant exchange rates, Telefónica achieved operating revenue of 8.13 billion euros (approximately 9.52 billion USD), representing a year-on-year increase of 0.8%. Among these, service revenue grew 1.1%, offsetting a 2.4% decline in mobile phone sales revenue. During the same period, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 1.8% year-on-year to 2.84 billion euros; the adjusted EBITDA margin increased slightly by 0.3 percentage points to 34.9%.

In terms of profit, due to the sale of its business units in Chile, Colombia, and Mexico, Telefónica recorded a net loss of 411 million euros in the first quarter, a significant narrowing compared to the 1.3 billion euro loss in the same period last year. Excluding the impact from the divestiture of its Latin American businesses, its adjusted net profit from continuing operations was 482 million euros.