Telefonica returns to profit as debt falls

Telefonica returned to profit in the first nine months of the year and cut its debt, helped by its core markets in Spain and Brazil.

The Spanish telecoms group reported earnings of 464 million euros, or $515 million, for the period to September, compared with losses of more than one billion euros in the same period last year.

Revenue rose 2.8 percent to 24.8 billion euros. Telefonica also said it had reduced debt by 10.8 percent to 25.1 billion euros by the end of September, its largest reduction since 2021.

Spain and Brazil are among Telefonica's core markets, along with Britain and Germany, after a strategic shift that included divestments from Latin America to boost profitability.

In 2025, Telefonica's losses reached 4.32 billion euros, mainly because of restructuring costs as it announced a plan to cut around 5,000 jobs and pull out of competitive Latin American markets.

Telefonica chairman Marc Murtra said the results showed the transformation plan was proving effective.