Reasons To Invest


Backed by the optionality of €114bn in assets and operations serving around 370m accesses, business growth, operational execution and debt reduction continue to be the main drivers of value creation at Telefónica.

Our long-term strategy is to generate sustainable, profitable growth by leveraging the strengths of our technology businesses, by deploying the best quality networks and services with the greatest capital efficiency, by unlocking the value of our infrastructure assets and by streamlining and digitising our operations.

Q2 2021 was an inflection point in the transition to sustainable profitable growth as we restored solid y-o-y organic revenue and OIBDA growth trends and made significant progress against our strategic objectives. We:

  • Completed two of the most significant steps in our long-term strategy, the Virgin Media O2 joint venture in the UK and the sale of the Telxius towers portfolio
  • Grew retail accesses to 343.5m (+4% y-o-y) and wholesale accesses to 23.7m (+5% y-o-y)
  • Grew FTTH accesses to 11.1m (+24% y-o-y) of our total 25.7m retail fixed broadband accesses and grew contract post-paid mobile accesses to 115.0m (+6% y-o-y) of our total 274.9m mobile accesses
  • Allocated 50% of total CapEx to growth-focused investments including NGN rollout and deployment of sustainable green networks; increased our UBB network to 154.7m premises passed (up 6% y-o-y), 51.4m with FTTH (up 20% y-o-y), and we positioned for further-capital efficient growth through our fibre vehicles
  • Expanded LTE coverage to 84%, up 2 p.p. y-o-y
  • 5G network switch-on in the core markets, supported by our #1 FTTH position in Europe and Brazil
  • Streamlined our operations further with almost 80% of processes digitalised
  • Accelerated T. Tech revenue growth to 26.6% y-o-y, supported by access to the Group’s 5.5m B2B customer relationships
  • Progressed against our ESG objectives


OIBDA-CapEx - revenues

In parallel, we continued to reduce debt, halving our net financial debt over 5 years from €52.2bn in Jun-2016 to €26.2bn in Jun-2021.

Net Debt

Please access January-June 2021 results report PDF document  for further detail.

Our investment case reflects the five pillars of our strategy:

  1. Our four core businesses in Spain, Germany, UK and Brazil are a platform for sustainable growth and value creation
    • We are well positioned in our large, attractive markets with the scale, best-in-class networks and high-value customer services and strategies in each to capture and monetise ever rising demand for data and connectivity, improving our operating leverage over time. With the completion of our joint venture with Virgin Media in the UK, creating the leading UK converged operator, and the acquisition of Oi’s mobile assets in Brazil, our position in our core markets continues to strengthen.
    • These businesses are, or are well on their way to being, our free cash flow and capital generation engines. Our operations are well invested with CapEx spend either largely complete or well covered by cashflows.
    • They are our conduits for value optimisation:
      • Enabling a balanced finance strategy, allowing for further investment in profitable growth or return of cash to shareholders through our dividend policy.
      • Driving continued organic de-leveraging.
  2. Our growing global Tech and Infra businesses are building the world of tomorrow
    • Telefónica Tech is our multinational technology company headquartered in Spain with two business units, Cybersecurity & Cloud Tech and IoT & Big Data Tech. T. Tech brings enhanced capabilities to help businesses digitally transform and thus has a key part to play in the economic recovery. In Q2 21 T. Tech accelerated its growth, while reinforcing its positioning in Cloud through Cancom UK (Jul-2021) and Altostratus (Jun-2021) acquisitions.
    • Telefónica Infra, the Group’s infrastructure portfolio manager, has continued to focus on pursuing value creation opportunities in line with the Group’s strategy of crystallising the value of its infrastructure assets and capabilities, improving the competitive position of Telefónica’s operating business units by accelerating their FTTH rollout, and capturing future value upside from its infrastructure assets and co-investments. In July, FiBrasil (50% CDPQ; 25% T. Infra; 25% T. Brasil) announced its closing o and started operations. With both fibre vehicles fully operational (FiBrasil in Brazil and UGG in Germany), T. Infra is playing an active role in establishing the basis for long term revenue growth while delivering more inclusive connectivity, by increasing the reach and penetration of high-quality, state-of-the-art FTTH accesses. Additionally, in June, Telefonica closed the sale of Telxius Towers in Europe and Latam to ATC.
  3. Reduce and optimise our exposure to the non-core Hispam portfolio
    • Telefónica’s overall exposure to Hispam continues to be reduced in terms of capital employed and by increasing the share of debt denominated in local currencies, while the new regional operating model continues to deliver greater operating efficiencies.
    • In parallel, we maintain our focus on leveraging potential opportunities for growth in the region through organic and inorganic alternatives, including the closing the sale of 60% of InfraCo Chile (40% T. Chile) to KKR and launching a similar independent neutral fibre network vehicle with KKR in Colombia (60% KKR; 40% T. Colombia).
  4. Simplifying, streamlining and digitising our operating model to drive better efficiency
    • Telefónica Group continues to strive towards further efficiency gains and more agile and transparent services, leveraging increasing levels of digitalisation and automation across all company processes, achieving the digitisation of 79% of all processes by Q2 2021 (+2 p.p. y-o-y) and more widely through contributing to the shared effort to promote and develop Open-RAN technologies along with its main European Telco peers, by publishing an initial list of technical requirements.
  5. Our commitment to creating a more sustainable future is providing value for all of our stakeholders
    • In the Decade of Action to achieve the UN Sustainable Development Goals, we have made significant achievements across the three pillars of our ESG strategy:
      • Leading by example
        • Reached a collective agreement with unions to adopt flexible working in Spain.
        • Updated our Diversity and Inclusion Policy; target of 33% of women in management positions by the end of 2024.
        • Vivo nominated as one of the best companies to work for women in Brazil (GPTW 2021).
      • Helping Society Thrive
        • To drive education and employability, we've inaugurated our second 42 Campus, launched Miriadax_Empresas and consolidated our Conecta Empleo programme.
        • We founded IndesIA, a consortium to drive digitalisation via AI in Spain and launched Vida V, a health marketplace to make telemedicine more accessible in Brazil.
      • Building a greener future through digitalisation
        • We introduced an Eco Rating scheme to identify the environmental impact of mobile phones.
        • Virgin Media-O2 issued its first green bond to support the fibre rollout and the use of renewable electricity.
        • Financial Times has nominated Telefónica as a Climate Leader.


NOTE: Figures from the latest publication available for each year, except for Net Financial Debt, redefined since 2019 and restated for comparison purposes for the previous years since the entry into force of IFRS-16