Telefónica to lose 49 million in 2024 due to its business in Latin America
The teleco company records provisions worth billions to deal with the deterioration of its subsidiaries
MadridExtraordinary items once again mark Telefónica's annual accounts. If last year the ERE in Spain and the situation in the United Kingdom led the first telecom Spanish: Telefónica to losses of 800 million euros, this time it is the subsidiaries in Latin America that cause it to close the 2024 financial year with losses of 49 million euros, as reported by the company this Thursday morning through the National Securities Market Commission (CNMV). Specifically, Telefónica explains that this negative result is due to the extraordinary provision of up to 2.2 billion euros to deal with the deterioration of the business on the other side of the Atlantic (in all countries where it is present except Brazil).
The company chaired by the Catalan Marc Murtra since last January, when the Spanish government, the largest shareholder in the telecom, decided to place him in the place of José María Álvarez Pallete, would have recorded an adjusted net profit of 2,304 million euros if it had not taken into account these extraordinary items.
Precisely, this Monday the board of directors of Telefónica decided to approve the sale of its subsidiary in Argentina in Telecom, owned by Grupo Clarín and businessman David Martínez, for about 1,190 million euros. One more step that is added to the agreement to transfer its business to Colombia, as well as the launch of the sale of its activity in Mexico and Uruguay.
All in all, the company has noted that it has met its financial objectives and confirms the dividend of 0.30 euros per share in 2025, the same amount as in 2024. The telecom had a turnover of 41.315 billion euros, 1.6% more than in 2023.
Murtra's first results
These are the first results that Murtra must defend as president of the teleoperator. "We have met our financial objectives while continuing to strengthen our competitive position," he assured shareholders and investors. The new president assures that the telecom is "uniquely positioned" to lead the sector in the face of a "new time for Europe." In fact, in an interview with Financial Times On Wednesday, Murtra advocated cross-border consolidation at a European level to consolidate the sector and confront the leadership of the United States.