Debt evolution
Net financial debt and commitments
Unaudited figures (Euros in millions)
| December 2023 | September 2024 | |
|---|---|---|
| Non-current financial liabilities | 33,360 | 32,180 |
| Current financial liabilities | 3,701 | 5,913 |
| Gross Financial Debt | 37,061 | 38,093 |
| Cash and cash equivalents | (7,151) | (6,325) |
| Current financial assets | (1,066) | (2,368) |
| Non-current financial assets | (3,421) | (2,979) |
| Mark-to-market derivatives adjustment (1) | 454 | 629 |
| Other current assets and liabilities | (265) | (196) |
| Other non-current assets and liabilities | 1,737 | 1,894 |
| Net Financial Debt | 27,349 | 28,748 |
| Lease Liabilities | 8,920 | 8,067 |
| Net Financial Debt including Lease liabilities | 36,269 | 36,815 |
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 9M 24, Telefónica Group raised long term financing by €3,542m and VMO2 raised €2,172m equivalent.
Financing activities in Q3 24 included:
- In July and August, our subsidiary in Ecuador (Otecel) signed several USD denominated-bilateral loans with maturities in 2029 and 2031 for a total aggregate amount of €74m equivalent
- In August, Coltel signed a couple of bilateral loans for €70m equivalent and maturing in 2026 and 2027
- In September, Telefónica Europe B.V. completed a €200m reopening of an existing green hybrid bond with a coupon of 6.750% and 8 years reset date
After Sep-24, in Oct-24, Telefónica signed a €140m bilateral loan with maturity in Oct-31.
Telefónica financing activity has allowed the Group to maintain a solid liquidity position of €19,910m (€11,217m of undrawn committed credit lines; €10,723m maturing over 12M). As of Sep-24, the Group has covered debt maturities over the next three years and the average debt life stood at nearly 11 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 €1,180m as of Sep-24.
Financial debt
Total Financial Liabilities Breakdown
Unaudited figures (Euros in millions)
| September 2024 | |||
|---|---|---|---|
| Bonds and commercial paper | Debt with financial institutions | Other financial debt (including governments) and net derivatives | |
| Total financial liabilities (1) | 84% | 7% | 9% |
(1) Includes positive value of derivatives and other financial debt
Net financial debt plus Lease Liabilities structure by currency
Unaudited figures (Euros in millions)
| September 2024 | ||||
|---|---|---|---|---|
| EUR | BRL | HISPAM | OTHER | |
| Net financial debt plus Lease Liabilities structure by currency | 73% | 16% | 10% | 1% |
Financial expenses
Interest payments declined 6.7% y-o-y to €925m in 9M 24 mainly due to extraordinary payments in Peru in 9M 23. Excluding this, were stable y-o-y. Debt-related interest payments were stable y-o-y on lower interest rates in Brazilian reais debt and a robust fixed interest rates position in hard currencies. The effective cost of debt related interest payments (L12M) decreased to 3.61% as of Sep-24 (3.80% in Dec-23).
Note: For further information, please access the January – September 2024 Results Report.
