Shares slide as Telefonica slashes dividend
By Abigail Townsend
Date: Tuesday 04 Nov 2025
(Sharecast News) - Shares in Telefonica slumped on Tuesday, after the Spanish telecoms group confirmed it would slash the dividend as part of a new strategy.
Laying out the five-year plan, the firm said it wanted to cut debt, bolster investment in equipment, networks and new products and take advantage of any potential acquisition opportunities.
It will also simplify its operating model to focus on its four core markets: Spain, Germany, the UK and Brazil.
Chief executive Marc Murtra, who took over the role earlier this year, has already offloaded Telefonica's operations in the rest of Latin America.
To help fund the overhaul, however, the dividend will be slashed to just €0.15 per share in 2026, a 50% reduction on 2025's payout.
By 0945 GMT, the Madrid-listed stock had shed 10%.
Telefonica said the new strategy would "drive growth, create long-term value and bolster its leadership across its main markets...while accelerating its technological, operational and commercial evolution".
It is targeting a compound annual growth rate of between 1.5% and 2.5% for revenues, accelerating to between 2.5% and 3.5% from 2028 to 2030.
The targeted CAGR for adjusted earnings was between 1.5% and 2.5% for 2025 to 2028.
Telefonica also posted third-quarter numbers on Tuesday. Revenues fell 1.6% to €8.96bn, while earnings before interest, tax, depreciation and amortisation came in at €3.07bn, down 1.5%. However, on an organic basis, EBITDA was up 1.2%.
Net debt stood at €28.2bn.
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