{"id":17588,"date":"2026-05-06T01:21:53","date_gmt":"2026-05-06T01:21:53","guid":{"rendered":"https:\/\/www.europesays.com\/spain\/17588\/"},"modified":"2026-05-06T01:21:53","modified_gmt":"2026-05-06T01:21:53","slug":"telefonica-launches-transform-grow-5-year-plan-to-drive-growth-operational-excellence","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/spain\/17588\/","title":{"rendered":"Telef\u00f3nica Launches \u2018Transform & Grow\u2019 5-Year Plan to Drive Growth & Operational Excellence"},"content":{"rendered":"


\n\tTelef\u00f3nica unveiled Transform & Grow at its Capital Markets Day \u2014 a new five-year strategic plan devised to drive growth, create long-term value, and bolster its leadership across its main markets \u2014 Spain, Germany, the UK and Brazil \u2014 while accelerating its technological, operational and commercial evolution.\u00a0<\/p>\n


\n\tTelef\u00f3nica is transforming to grow, with one mission: to deliver the best digital experience to its customers and the vision of becoming a world-class European operator with profitable scale.<\/p>\n


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\n\t\t\"Comarch\"\/
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\n\tTransform & Grow is a growth plan that aims to promote efficiency and simplification across the Group and its operations, resting on six strategic pillars:<\/p>\n


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\n\t\tDeliver the best in-class customer experience, Telef\u00f3nica will enhance network performance and customer care across all channels. Service excellence and customer experience are key, and the company plans significant investment in Artificial Intelligence to strengthen both.
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\n\t\tExpand the B2C offering, the company will reinforce convergence in Spain and Brazil, expand it in the UK and Germany, and boost ecosystem services to grow B2C revenues and household presence. Telef\u00f3nica will accelerate both convergence and the digital ecosystem \u2014 two key growth drivers.
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\n\t\tScale the B2B and public administration business, Telef\u00f3nica aims to modernise communication services in Spain and Brazil, seize opportunities in the UK and Germany, and accelerate growth in digital services by leveraging Telef\u00f3nica Tech, Global Business Units, and local partnerships with companies and sales channels.
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\n\t\tEvolve its technological capabilities, the company will invest in fixed and mobile networks, upgrade IT systems, and focus innovation on technologies that enhance its product portfolio, performance, and customer value proposition.
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\n\t\tSimplify the operating model, Telef\u00f3nica will evolve towards a simplified Group operating model, granting greater autonomy to countries and global units focused on critical roles and value creation through scale.
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\n\t\tDevelop talent, the company will attract and retain the very best professionals across all markets and strengthen a culture focused on impact and execution. <\/p>\n


\n\tTransform & Grow includes a number of initiatives aimed at improving the Group\u2019s operational efficiency. This will deliver a gross impact of up to \u20ac2.3bn in savings in 2028 and \u20ac3bn by 2030. This will be achieved through technological and operational excellence, streamlined processes, digital transformation, and the sale of legacy network assets as part of its regular network shutdown operations.<\/p>\n


\n\tKey financial objectives for the 2026\u20132030 strategic plan include:<\/p>\n


\n\tThe financial targets of the plan include a compound annual growth rate (CAGR) of 1.5\u20132.5% in revenues between 2025 and 2028, accelerating to 2.5\u20133.5% between 2028 and 2030; and a compound annual growth rate of 1.5\u20132.5% in adjusted EBITDA for the 2025\u20132028 period, accelerating to 2.5\u20133.5% between 2028 and 2030.<\/p>\n


\n\tThe plan Transform & Grow envisions growing and de-risked free cash flow, maintaining an investment-grade rating, linking shareholder remuneration to free cash flow, and enhancing financial flexibility.<\/p>\n


\n\tDividend policy forms an integral part of Telef\u00f3nica\u2019s capital allocation strategy and it will stem from the company\u2019s free cash flow after investing in its future and maintaining an appropriate leverage level.<\/p>\n


\n\tThe 2025 dividend is confirmed at \u20ac0.30 per share, payable in two tranches (December 2025 and June 2026). For 2026, a cash dividend of \u20ac0.15 per share will be paid in June 2027. The remuneration target for 2027 and 2028 will be based on a range of 40\u201360% of base free cash flow (FCF) allocated to dividends, payable in June of the following year.<\/p>\n


\n\tWhile the 2026\u201330 Strategic Plan does not include consolidation opportunities, Telef\u00f3nica remains ready to seize any that may arise within the plan\u2019s timeframe.<\/p>\n


\n\tFinally, Telef\u00f3nica reaffirms its commitment to the technological development of the sector and to Europe\u2019s strategic autonomy, emphasizing that the lack of consolidation in the European telecommunications market has led to inefficient investment compared with the United States and China, as well as increasing technological dependence in critical areas.<\/p>\n


\n\tThe company estimates that a potential consolidation within its core markets could generate synergies worth between \u20ac18\u201322 billion, according to financial analysts and industry experts\u2014value that could be shared among buyers, sellers, customers, investment, and innovation.<\/p>\n","protected":false},"excerpt":{"rendered":" Telef\u00f3nica unveiled Transform & Grow at its Capital Markets Day \u2014 a new five-year strategic plan devised…\n","protected":false},"author":2,"featured_media":17589,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[809,544,155],"class_list":{"0":"post-17588","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-telefonica","8":"tag-artificial-intelligence","9":"tag-digital-transformation","10":"tag-telefonica"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/17588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=17588"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/17588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/17589"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=17588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=17588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=17588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}