Debt evolution
(1) Including the sale of Telefónica Argentina and the stake in Nabiax.
Net financial debt and commitments
Unaudited figures (Euros in millions)
| December 2023 | December 2024 | |
|---|---|---|
| Non-current financial liabilities | 33,360 | 33,192 |
| Current financial liabilities | 3,701 | 5,590 |
| Gross Financial Debt | 37,061 | 38,782 |
| Cash and cash equivalents | (7,151) | (8,062) |
| Current financial assets | (1,066) | (1,789) |
| Non-current financial assets | (3,421) | (3,698) |
| Mark-to-market derivatives adjustment (1) | 454 | 383 |
| Other current assets and liabilities | (265) | (262) |
| Other non-current assets and liabilities | 1,737 | 1,807 |
| Net Financial Debt | 27,349 | 27,161 |
| Lease Liabilities | 8,920 | 8,275 |
| Net Financial Debt including Lease liabilities | 36,269 | 35,436 |
Notes:
(1) Includes the market value of cash flow hedges related to debt instruments and the market value of economic hedges associated with gross employee benefit commitments.
Financing activity
In 2024, Telefónica Group raised long term financing by €3,868m and VMO2 raised €2,657m equivalent.
Financing activities in Q4 24 included:
- In Oct-24, Telefónica signed a €140m bilateral loan with maturity in Oct-31
- In Nov-24, Telefónica signed a €100m bilateral loan with maturity in Dec-31 and Telefónica Móviles Chile issued UF 1,000bn bond with maturity in Nov-29
- In Dec-24, VMO2 issued a 7.25 tenor vendor financing for an amount of GBP 400m
In Jan-25, Telefónica completed the refinancing of its main syndicated facility of €5,500m and extended its maturity to 5 years, with two annual extension option, up to a maximum maturity of 7 years (Jan-32), and also signed a €125m bilateral loan with maturity in Jan-35. In the capital markets, Telefónica successfully placed a senior bond for an amount of €1bn with a 9-year maturity and an annual coupon of 3.724%.
Telefónica financing activity has allowed to maintain a solid liquidity position of €20,868m (€11,017m of undrawn committed credit lines; €10,634m maturing over 12M). As of Dec-24, the Group has covered debt maturities over the next three years and the average debt life stood at 11.3 years.
Telefónica and its holding companies continued their issuance activity under the Promissory Notes and Commercial Paper Programmes (Domestic and European), maintaining an outstanding notional balance of €1,200m as of Dec-24.
Financial debt
Total Financial Liabilities Breakdown
Unaudited figures (Euros in millions)
| December 2024 | |||
|---|---|---|---|
| Bonds and commercial paper | Debt with financial institutions | Other financial debt (including governments) and net derivatives | |
| Total financial liabilities (1) | 85% | 8% | 7% |
(1) Includes positive value of derivatives and other financial debt
Net financial debt plus Lease Liabilities structure by currency
Unaudited figures (Euros in millions)
| December 2024 | ||||
|---|---|---|---|---|
| EUR | BRL | HISPAM | OTHER | |
| Net financial debt plus Lease Liabilities structure by currency | 78% | 16% | 9% | -2% |
Financial expenses
Interest payments declined 18.3% y-o-y to €1,116m in FY 24 mainly due to lower interest rates in Brazilian reais debt, an active refinancing exercise undertaken in previous years and extraordinary payments in Peru in 2023. The effective cost of debt related interest payments (L12M) decreased to 3.32% as of Dec-24 (3.80% in Dec-23).
Note: For further information, please access the January – December 2024 Results Report.