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Telefónica Unveils 2026–2030 Plan, Halves Dividend and Confirms Exit From Mexico, Chile and Venezuela

Investor backlash left the shares down about 10% after core shareholders endorsed a pivot to Spain, Germany, the UK and Brazil.

Overview

  • The company will pay €0.30 per share for 2025 and cut the next payout to €0.15 in June 2027, then target 40%–60% of free cash flow for dividends in 2027–2028.
  • Telefónica formally set Brazil as its sole Latin American core market and said it will leave Mexico, Chile and Venezuela, with Colombia’s sale pending closing conditions and no timelines disclosed.
  • Through September, the group reported a €1,080 million net attributable loss driven by €1,909 million of discontinued-operations losses tied to Latin America disposals; revenue reached €26.97 billion and net financial debt stood near €28.2 billion.
  • The Transform & Grow plan targets annual revenue and adjusted-EBITDA growth of roughly 1.5%–2.5% to 2028, accelerating to about 2.5%–3.5% to 2030, with gross efficiency savings of up to €2.3 billion by 2028 and €3.0 billion by 2030.
  • Management said the group is prepared to pursue European consolidation to gain scale but announced no specific deals, and noted the plan received unanimous backing from SEPI, CriteriaCaixa and the Saudi investor.