Telefonica Lifts Operational Cash-Flow Outlook, Swings to Net Profit

By Najat Kantouar

Telefonica raised its full-year guidance for a key cash flow metric after swinging to a net profit in the second quarter, supported by growth in Spain and Brazil.

The Spanish telecommunications company said Wednesday that it swung to a net profit of 73 million euros ($83.1 million) in the second quarter from a loss of 51 million euros in the same period a year earlier.

Stripping out disposals, net profit from continuing operations was 87 million euros compared with 262 million euros a year earlier. The company also booked a 265 million-euro provision to cover the restructuring of its German business.

Adjusted earnings before interest, taxes, depreciation and amortization--one of the company's preferred metrics--edged up 6.4% at real exchange rates or 2.7% at constant exchange rates to 2.93 billion euros. The corresponding margin rose to 35.5% from 34.4% a year earlier.

Revenue rose to 8.265 billion euros from 8.021 billion euros, driven by accelerated growth in its key regions of Spain and Brazil.

Analysts had forecast adjusted Ebitda and revenue at 2.89 billion euros and 8.22 billion euros, according to a company-compiled consensus.

Telefonica raised its full-year guidance for adjusted operating cash flow after leases to more than 3% from more than 2%, citing its strong momentum and improving operating leverage.

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

(END) Dow Jones Newswires

July 29, 2026 02:30 ET (06:30 GMT)