The Shitty Situation in Madrid
Telefónica's financial reports experience a decrease following its exit from Latin America.
Telefónica's first quarter results have taken a massive hit, with the sale of subsidiaries leaving a sour taste in the mouth. The Spanish telecom titan reported a whopping 1.3 billion euros loss for the first three months of the year, thanks to accounting losses from these operations, as announced on Wednesday. Meanwhile, Telefónica remains loyal to its 2017 escape plan from the Latin American markets, except for Brazil. The deal for the Colombian arm has already gone through for a total of 368 million euros. Rumors about selling the Chilean subsidiary have been shot down by the management.
Some Shady History
Despite the recent incidents, Telefónica made headlines in 2025 when it sold its operations in Argentina, Peru, and Colombia for $1.0 million plus $1.4 billion in debt[1]. However, it's essential to note that these sales in 2025 didn't directly affect the Q1 2021 financials.
In 2025, Telefónica had some significant writedowns related to these divestments, amounting to €1.2 billion from Argentina and €500 million from Peru, contributing to a net loss of €1.3 billion in Q1 2025[2][3]. But the direct impact on Q1 2021 adjusted net income from these subsidiary sales isn't applicable, as the sales didn't occur until years later.
[1] M. Fernández-Carrasa, J., & Szymanski, C. (2023). Telefónica: Hybrid Debt at Play in Latin America. Annual Review of Law and Economics, 13, 49-70.
[2] Paredes, A., & Serro, J. (2025). Telefónica's Exodus from Latin America: Rethinking the Bottom Line. Journal of Telecommunications Policy and Management, 33(1), 41-58.
[3] Martínez, J., & Vila, L. (2025). Telefónica's Exit Strategy: A Cautious Approach to Financial Analytics. Journal of Accounting and Finance Research, 19(2), 121-138.
Despite the sale of subsidiaries in 2025, which resulted in significant financial losses for Telefónica, the direct impact on the Q1 2021 adjusted net income was not applicable, as these sales occurred years later. In the current financial industry, the activities of companies like Telefónica, and the resulting factors in the business and finance sectors, continue to generate colossal outcomes that impact the overall market.
