Madrid, 4th November 2025.- Today Telefónica unveiled Transform & Grow at its Capital Markets Day — a new five-year strategic plan devised to drive growth, create long-term value, and bolster its leadership across its main markets — Spain, Germany, the UK and Brazil — while accelerating its technological, operational and commercial evolution. Telefónica is transforming to grow, with one mission: to deliver the best digital experience to its customers and the vision of becoming a world-class European operator with profitable scale.
Transform & Grow is a growth plan that aims to promote efficiency and simplification across the Group and its operations, resting on six strategic pillars:
- Deliver the best in-class customer experience, Telefónica will enhance network performance and customer care across all channels. Service excellence and customer experience are key, and the company plans significant investment in Artificial Intelligence to strengthen both.
- Expand the B2C offering, the company will reinforce convergence in Spain and Brazil, expand it in the UK and Germany, and boost ecosystem services to grow B2C revenues and household presence. Telefónica will accelerate both convergence and the digital ecosystem — two key growth drivers.
- Scale the B2B and public administration business, Telefónica aims to modernise communication services in Spain and Brazil, seize opportunities in the UK and Germany, and accelerate growth in digital services by leveraging Telefónica Tech, Global Business Units, and local partnerships with companies and sales channels.
- Evolve its technological capabilities, the company will invest in fixed and mobile networks, upgrade IT systems, and focus innovation on technologies that enhance its product portfolio, performance, and customer value proposition.
- Simplify the operating model, Telefónica will evolve towards a simplified Group operating model, granting greater autonomy to countries and global units focused on critical roles and value creation through scale.
- Develop talent, the company will attract and retain the very best professionals across all markets and strengthen a culture focused on impact and execution.
Financial plan
Transform & Grow includes a number of initiatives aimed at improving the Group’s operational efficiency. This will deliver a gross impact of up to €2.3bn in savings in 2028 and €3bn by 2030. This will be achieved through technological and operational excellence, streamlined processes, digital transformation, and the sale of legacy network assets as part of its regular network shutdown operations.
Key financial objectives for the 2026–2030 strategic plan include:
- The financial targets of the plan include a compound annual growth rate (CAGR) of 1.5–2.5% in revenues between 2025 and 2028, accelerating to 2.5–3.5% between 2028 and 2030; and a compound annual growth rate of 1.5–2.5% in adjusted EBITDA for the 2025–2028 period, accelerating to 2.5–3.5% between 2028 and 2030.
The plan Transform & Grow envisions growing and de-risked free cash flow, maintaining an investment-grade rating, linking shareholder remuneration to free cash flow, and enhancing financial flexibility.
Dividend policy forms an integral part of Telefónica’s capital allocation strategy and it will stem from the company’s free cash flow after investing in its future and maintaining an appropriate leverage level.
The 2025 dividend is confirmed at €0.30 per share, payable in two tranches (December 2025 and June 2026). For 2026, a cash dividend of €0.15 per share will be paid in June 2027. The remuneration target for 2027 and 2028 will be based on a range of 40–60% of base free cash flow (FCF) allocated to dividends, payable in June of the following year.
Our commitment to European Strategic Autonomy
While the 2026–30 Strategic Plan does not include consolidation opportunities, Telefónica remains ready to seize any that may arise within the plan’s timeframe.
Finally, Telefónica reaffirms its commitment to the technological development of the sector and to Europe’s strategic autonomy, emphasizing that the lack of consolidation in the European telecommunications market has led to inefficient investment compared with the United States and China, as well as increasing technological dependence in critical areas.
The company estimates that a potential consolidation within its core markets could generate synergies worth between €18–22 billion, according to financial analysts and industry experts—value that could be shared among buyers, sellers, customers, investment, and innovation.
