Telefonica Net Loss Widens, But Adjusted Earnings Rise

By Najat Kantouar

Telefonica reported a widened net loss for the fourth quarter of last year, partly due to impairments, though adjusted earnings rose after growth in Spain and Brazil.

The Spanish telecommunications group said Tuesday that its net loss was 3.24 billion euros ($3.82 billion) compared with a loss of 1.0 billion euros for the same period a year earlier.

The result partly reflects impairments and losses on the disposal of assets in the quarter of around 255 million euros, including noncash goodwill impairments in Telefonica Tech and its Chilean subsidiary.

Adjusted earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--increased to 3.20 billion euros from 3.13 billion euros. The corresponding margin was 34.9% compared with 34.4%.

Revenue rose to 9.17 billion euros from 9.11 billion euros, mainly reflecting growth in Spain and Brazil.

Analysts had forecast revenue of 9.10 billion euros and adjusted Ebitda of 3.15 billion euros, according to a company-compiled consensus.

The board declared a dividend of 30 European cents a share, the same as a year earlier.

For 2026, Telefonica expects revenue growth of between 1.5% and 2.5% and adjusted Ebitda growth of between 1.5% and 2.5%. It anticipates a free cash flow of around 3.0 billion euros.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

February 24, 2026 02:28 ET (07:28 GMT)