This report does not constitute a rating action. Editor's note: In the original version of this article, published June 13, 2025, some figures in the forecast summary data table were incorrect. A corrected table follows. Overview Key strengths Key risks Sound competitive position in its core markets of Spain, Brazil, and Germany, benefitting from strong convergence and premium offerings. Recent management changes have led to uncertain prospects for Telefonica's medium-term strategy and a potential revision to its financial policy framework, to be resolved in the group's upcoming capital markets day. Well-recognized portfolio of brands and overall well-invested networks, including a wide fiber-to-the-home (FTTH) footprint in Spain and expanding into other geographies partly through fiber vehicles. Somewhat low profitability among its
