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Segment Information | 12 Months Ended
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Dec. 31, 2024
Operating Segments [Abstract] |
Segment Information | Segment information In 2024 the Telefónica Group is reporting financial information, both internally and externally, according to the following segments: Telefónica Spain, VMO2 (recorded by the equity method), Telefónica Germany, Telefónica Brazil and Telefónica Hispam (formed by the Group's operators in Colombia, Mexico, Venezuela, Ecuador, Argentina, Chile, Peru and Uruguay). In 2024, the impairment of goodwill of the cash-generating unit in Peru and Chile is included in the Telefónica Hispam segment, and the impairment of goodwill of Telefónica Tech UK & Ireland and the BE-terna Group is included in Other companies (see Note 7). In 2023, the impairment of goodwill of the cash-generating unit in Ecuador (see Note 7) is included in the Telefónica Hispam segment. The segments referred to above include the information relating to the fixed, mobile, cable, data, internet, television and other digital services businesses provided in each country. Intersegment transactions are carried out as if on an arm's length basis. Information relating to other Group companies not specifically included in these segments is reported under "Other companies" (see Appendix I), which includes Telefónica, S.A. and other holding companies, as well as companies whose main purpose is to provide cross-sectional services to Group companies and other operations not included in the segments. The Incremental Group and BE-terna Group, acquired in 2022 (see Note 5), and Cancom Group, acquired in 2021, are reported within "Other companies". "Other companies" also includes the share of results of investments accounted for by the equity method corresponding to the fiber optic companies in which Telefónica Infra, S.L. has ownership interests (see Note 10). The Group centrally manages borrowing activities, mainly through Telefónica, S.A. and other companies (see Note 19, Appendix III and Appendix V), so most of the Group's financial assets and liabilities are reported under Other companies. In addition, Telefónica, S.A. is the head of the Telefónica tax group in Spain (see Note 25). Therefore, a significant part of the deferred tax assets and liabilities is included under Other companies. For these reasons, the results of the segments are disclosed through operating income. Revenues and expenses arising from intra-group invoicing for the use of the trademark and management services were eliminated from the operating results of each Group segment. The results of the holding companies also exclude dividends from Group companies and impairments of investments in Group companies. These adjustments have no impact on the Group’s consolidated results. In addition, segment reporting considers the impact of the purchase price allocation to the assets acquired and the liabilities assumed by the companies included in each segment. The assets and liabilities presented in each segment are those managed by the heads of each segment, regardless of their legal structure. Operating results before depreciation and amortization is calculated by excluding from the result of the year the income tax, the net financial expense, the result of investments accounted for by the equity method and the depreciation and amortization of the period. Operating results before depreciation and amortization is used to track the performance of the business and to establish operating and strategic targets of the Telefónica Group companies. Operating results before depreciation and amortization is a commonly reported measure and is widely used among analysts, investors and other interested parties in the telecommunications industry, although not a measure explicitly defined in IFRS, and therefore, may not be comparable to similar indicators used by other companies. Operating results before depreciation and amortization should not be considered as a substitute for operating income. The following table presents income, CapEx information (capital expenditures in intangible assets and property, plant and equipment, see Notes 6 and 8) and acquisitions of rights of use (see Note 9) regarding the Group’s operating segments:
2024
Millions of euros | Telefónica Spain |  | VMO2 | Telefónica Germany | Telefónica Brazil | Telefónica Hispam | Other companies | Eliminations | Total Group
Revenues | 12,791 |  |  | — |  | 8,492 |  | 9,618 |  | 9,032 |  | 3,725 |  | (2,343) |  | 41,315 |
External revenues | 12,510 |  |  | — |  | 8,463 |  | 9,606 |  | 8,918 |  | 1,811 |  | 7 |  | 41,315 |
Intersegment revenues | 281 |  |  | — |  | 29 |  | 12 |  | 114 |  | 1,914 |  | (2,350) |  | — |
Other operating income and expenses(1) | (8,177) |  |  | — |  | (5,727) |  | (5,502) |  | (9,432) |  | (3,691) |  | 2,408 |  | (30,121) |
Operating results before depreciation and amortization | 4,614 |  |  | — |  | 2,765 |  | 4,116 |  | (400) |  | 34 |  | 65 |  | 11,194 |
Depreciation and amortization | (2,202) |  |  | — |  | (2,226) |  | (2,474) |  | (1,651) |  | (281) |  | 35 |  | (8,799) |
Operating income (loss) | 2,412 |  |  | — |  | 539 |  | 1,642 |  | (2,051) |  | (247) |  | 100 |  | 2,395 |
Share of (loss) income of investments accounted for by the equity method | (20) |  |  | 89 |  | — |  | (1) |  | (41) |  | (76) |  | — |  | (49) |
CapEx | 1,571 |  |  | — |  | 1,141 |  | 1,583 |  | 1,001 |  | 185 |  | (6) |  | 5,475 |
Acquisitions of rights of use | 350 |  |  | — |  | 578 |  | 822 |  | 354 |  | 44 |  | (6) |  | 2,142 |
(1) Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
2023
Millions of euros | Telefónica Spain |  | VMO2 | Telefónica Germany | Telefónica Brazil | Telefónica Hispam | Other companies | Eliminations | Total Group
Revenues | 12,654 |  |  | — |  | 8,614 |  | 9,650 |  | 8,381 |  | 3,553 |  | (2,200) |  | 40,652 |
External revenues | 12,350 |  |  | — |  | 8,585 |  | 9,637 |  | 8,284 |  | 1,790 |  | 6 |  | 40,652 |
Intersegment revenues | 304 |  |  | — |  | 29 |  | 13 |  | 97 |  | 1,763 |  | (2,206) |  | — |
Other operating income and expenses(1) | (9,425) |  |  | — |  | (5,974) |  | (5,522) |  | (6,871) |  | (3,598) |  | 2,128 |  | (29,262) |
Operating results before depreciation and amortization | 3,229 |  |  | — |  | 2,640 |  | 4,128 |  | 1,510 |  | (45) |  | (72) |  | 11,390 |
Depreciation and amortization | (2,200) |  |  | — |  | (2,323) |  | (2,511) |  | (1,557) |  | (244) |  | 38 |  | (8,797) |
Operating income (loss) | 1,029 |  |  | — |  | 317 |  | 1,617 |  | (47) |  | (289) |  | (34) |  | 2,593 |
Share of income (loss) of investments accounted for by the equity method | (23) |  |  | (2,030) |  | — |  | — |  | (3) |  | (106) |  | — |  | (2,162) |
CapEx | 1,607 |  |  | — |  | 1,133 |  | 1,671 |  | 938 |  | 230 |  | — |  | 5,579 |
Acquisitions of rights of use | 575 |  |  | — |  | 624 |  | 815 |  | 387 |  | 48 |  | (58) |  | 2,391 |
(1)Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
2022 |
Millions of euros | Telefónica Spain |  | VMO2 | Telefónica Germany | Telefónica Brazil | Telefónica Hispam | Other companies | Eliminations | Total Group
Revenues | 12,497 |  |  | — |  | 8,224 |  | 8,870 |  | 9,141 |  | 3,243 |  | (1,982) |  | 39,993 |
External revenues | 12,224 |  |  | — |  | 8,195 |  | 8,854 |  | 9,026 |  | 1,685 |  | 9 |  | 39,993 |
Intersegment revenues | 273 |  |  | — |  | 29 |  | 16 |  | 115 |  | 1,558 |  | (1,991) |  | — |
Other operating income and expenses(1) | (7,909) |  |  | — |  | (5,666) |  | (5,138) |  | (7,183) |  | (3,149) |  | 1,904 |  | (27,141) |
Operating results before depreciation and amortization | 4,588 |  |  | — |  | 2,558 |  | 3,732 |  | 1,958 |  | 94 |  | (78) |  | 12,852 |
Depreciation and amortization | (2,157) |  |  | — |  | (2,295) |  | (2,369) |  | (1,799) |  | (218) |  | 42 |  | (8,796) |
Operating income (loss) | 2,431 |  |  | — |  | 263 |  | 1,363 |  | 159 |  | (124) |  | (36) |  | 4,056 |
Share of (loss) income of investments accounted for by the equity method | (15) |  |  | 292 |  | — |  | — |  | (19) |  | (41) |  | — |  | 217 |
CapEx | 1,550 |  |  | — |  | 1,209 |  | 1,795 |  | 1,058 |  | 212 |  | (5) |  | 5,819 |
Acquisitions of rights of use | 724 |  |  | — |  | 594 |  | 596 |  | 514 |  | 17 |  | 3 |  | 2,448 |
(1)Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”. The table below shows the income, CapEx and acquisitions of rights of use of VMED O2 UK (VMO2) in 2024, 2023 and 2022 (see Note 2). VMO2 is a joint venture 50% owned by Telefónica and Liberty Global and is recorded under the equity method (see Note 10). The tables below show the information of the joint venture at 100% and the reconciliation with the Telefónica Group's share of income (loss) accounted for by the equity method.
VMO2
Millions of euros | 2024 | 2023 | 2022
Revenues | 12,616 |  | 12,547 |  | 12,155 |
Other operating income and expenses | (8,149) |  | (8,116) |  | (7,754) |
Impairment losses in goodwill | — |  | (3,572) |  | — |
Operating results before depreciation and amortization | 4,467 |  | 859 |  | 4,401 |
Depreciation and amortization | (3,371) |  | (3,685) |  | (4,170) |
Operating income (loss) | 1,096 |  | (2,826) |  | 231 |
Share of income of investments accounted for by the equity method | 4 |  | 2 |  | 1 |
Financial income | 51 |  | 55 |  | 24 |
Financial expenses | (1,578) |  | (1,436) |  | (1,020) |
Realised and unrealised gains on derivative instruments, net | 463 |  | (924) |  | 2,567 |
Foreign currency transaction losses, net | (34) |  | 677 |  | (1,296) |
Net financial result | (1,098) |  | (1,628) |  | 275 |
Result before taxation | 2 |  | (4,452) |  | 507 |
Income tax | (22) |  | 265 |  | (15) |
Result for the period | (20) |  | (4,187) |  | 492 |
Attributable to non-controlling interests | (19) |  | — |  | — |
Result for the period attributable to equity holders of the parent (100% VMO2) | (39) |  | (4,187) |  | 492 |
50% attributable to Telefónica Group | (20) |  | (2,094) |  | 246 |
Share-based compensation | 1 |  | 8 |  | 14 |
Sale of minority stake in Cornerstone | 112 |  | 76 |  | — |
Other adjustments | (5) |  | (20) |  | 32 |
Share of (loss) income of investments accounted for by the equity method | 89 |  | (2,030) |  | 292 |
Capital expenditures (CapEx) (100% VMO2) | 2,580 |  | 2,408 |  | 2,707 |
Acquisitions of rights of use (100% VMO2) | 539 |  | 135 |  | 118 |
The following table presents main assets and liabilities by segment:
2024
Millions of euros | Telefónica Spain |  | VMO2 | Telefónica Germany | Telefónica Brazil | Telefónica Hispam | Other companies | Eliminations | Total Group
Fixed assets | 14,119 |  |  | — |  | 10,710 |  | 15,348 |  | 5,627 |  | 1,971 |  | — |  | 47,775 |
Rights of use | 1,535 |  |  | — |  | 3,064 |  | 2,058 |  | 1,177 |  | 132 |  | (59) |  | 7,907 |
Investments accounted for by the equity method | 217 |  |  | 7,641 |  | — |  | 4 |  | 187 |  | 388 |  | (62) |  | 8,375 |
Financial assets and other non-currents assets | 1,126 |  |  | — |  | 728 |  | 1,004 |  | 1,434 |  | 7,941 |  | (4,830) |  | 7,403 |
Deferred tax assets | 2,507 |  |  | — |  | 604 |  | 278 |  | 842 |  | 2,442 |  | — |  | 6,673 |
Other current financial assets | 33 |  |  | — |  | 107 |  | 32 |  | 394 |  | 3,658 |  | (2,424) |  | 1,800 |
Non-current assets and disposal groups held for sale | — |  |  | — |  | — |  | — |  | 79 |  | 59 |  | — |  | 138 |
Total allocated assets | 25,858 |  |  | 7,641 |  | 17,805 |  | 22,277 |  | 14,204 |  | 24,705 |  | (11,988) |  | 100,502 |
Non-current financial liabilities | 507 |  |  | — |  | 474 |  | 362 |  | 6,906 |  | 29,634 |  | (4,691) |  | 33,192 |
Non-current lease liabilities | 988 |  |  | — |  | 2,401 |  | 1,666 |  | 1,010 |  | 42 |  | (30) |  | 6,077 |
Deferred tax liabilities | 86 |  |  | — |  | 290 |  | 798 |  | 284 |  | 1,447 |  | — |  | 2,905 |
Current financial liabilities | 612 |  |  | — |  | 771 |  | 270 |  | 765 |  | 6,903 |  | (3,731) |  | 5,590 |
Current lease liabilities | 480 |  |  | — |  | 606 |  | 702 |  | 444 |  | 36 |  | (42) |  | 2,226 |
Liabilities associated with non-current assets and disposal groups held for sale | — |  |  | — |  | — |  | — |  | 33 |  | — |  | — |  | 33 |
Total allocated liabilities | 15,756 |  |  | — |  | 9,373 |  | 8,743 |  | 14,265 |  | 41,508 |  | (11,892) |  | 77,753 |
2023
Millions of euros | Telefónica Spain |  | VMO2 | Telefónica Germany | Telefónica Brazil | Telefónica Hispam | Other companies | Eliminations | Total Group
Fixed assets | 14,186 |  |  | — |  | 11,114 |  | 18,749 |  | 6,742 |  | 2,243 |  | (12) |  | 53,022 |
Rights of use | 1,771 |  |  | — |  | 3,203 |  | 2,258 |  | 1,179 |  | 111 |  | (74) |  | 8,448 |
Investments accounted for by the equity method | 233 |  |  | 7,774 |  | — |  | 3 |  | 219 |  | 361 |  | — |  | 8,590 |
Financial assets and other non-currents assets | 1,058 |  |  | — |  | 962 |  | 1,054 |  | 1,374 |  | 7,384 |  | (4,564) |  | 7,268 |
Deferred tax assets | 2,676 |  |  | — |  | 538 |  | 406 |  | 738 |  | 1,882 |  | — |  | 6,240 |
Other current financial assets | 36 |  |  | — |  | 10 |  | 55 |  | 272 |  | 3,660 |  | (2,955) |  | 1,078 |
Non-current assets and disposal groups held for sale | — |  |  | — |  | — |  | — |  | 273 |  | — |  | — |  | 273 |
Total allocated assets | 27,119 |  |  | 7,774 |  | 18,565 |  | 26,114 |  | 15,019 |  | 23,096 |  | (13,363) |  | 104,324 |
Non-current financial liabilities | 695 |  |  | — |  | 1,235 |  | 688 |  | 6,164 |  | 28,948 |  | (4,370) |  | 33,360 |
Non-current lease liabilities | 1,223 |  |  | — |  | 2,559 |  | 1,817 |  | 1,111 |  | 44 |  | (46) |  | 6,708 |
Deferred tax liabilities | 82 |  |  | — |  | 254 |  | 927 |  | 601 |  | 838 |  | — |  | 2,702 |
Current financial liabilities | 1,458 |  |  | — |  | 286 |  | 48 |  | 768 |  | 6,960 |  | (5,819) |  | 3,701 |
Current lease liabilities | 486 |  |  | — |  | 555 |  | 725 |  | 476 |  | 20 |  | (23) |  | 2,239 |
Liabilities associated with non-current assets and disposal groups held for sale | — |  |  | — |  | — |  | — |  | 37 |  | — |  | — |  | 37 |
Total allocated liabilities | 16,869 |  |  | — |  | 9,937 |  | 9,837 |  | 13,720 |  | 40,159 |  | (13,294) |  | 77,228 |
The detail of assets and liabilities of VMO2 is as follows (amounts corresponding to 100% of the company, see Note 10):
VMO2
Millions of euros | December 2024 | December 2023
Fixed assets | 40,079 |  | 38,817 |
Rights of use | 1,073 |  | 773 |
Financial assets and other non-currents assets | 1,481 |  | 1,741 |
Deferred tax assets | 448 |  | 366 |
Other current financial assets | 660 |  | 569 |
Total assets | 48,247 |  | 46,455 |
Non-current financial liabilities | 21,754 |  | 21,061 |
Non-current lease liabilities | 950 |  | 663 |
Deferred tax liabilities | 1 |  | 1 |
Current financial liabilities | 4,970 |  | 4,165 |
Current lease liabilities | 197 |  | 201 |
Total liabilities | 32,804 |  | 30,727 |
The composition of segment revenues is as follows:
Millions of euros | 2024 | 2023 | 2022
Country by segments | Fixed | Mobile | Others and elims. | Total | Fixed | Mobile | Others and elims. | Total | Fixed | Mobile | Others and elims. | Total
Spain (*) |  |  |  | 12,791 |  |  |  |  | 12,654 |  |  |  |  | 12,497 |
Germany | 857 |  | 7,596 |  | 39 |  | 8,492 |  | 827 |  | 7,767 |  | 20 |  | 8,614 |  | 806 |  | 7,394 |  | 24 |  | 8,224 |
Brazil | 2,772 |  | 6,846 |  | — |  | 9,618 |  | 2,858 |  | 6,792 |  | — |  | 9,650 |  | 2,764 |  | 6,106 |  | — |  | 8,870 |
Hispam | 2,976 |  | 6,056 |  | — |  | 9,032 |  | 2,888 |  | 5,493 |  | — |  | 8,381 |  | 3,138 |  | 6,003 |  | — |  | 9,141 |
Other and inter-segment eliminations |  |  | 1,382 |  | 1,382 |  |  |  | 1,353 |  | 1,353 |  |  |  | 1,261 |  | 1,261 |
Total Group |  |  |  | 41,315 |  |  |  |  | 40,652 |  |  |  |  | 39,993 |
Note: In the countries of Telefónica Hispam segment with separate fixed and mobile operating companies, intercompany revenues were not considered. (*) The detail of revenues for Telefónica Spain is shown in the table below. Given the convergence reached at Telefónica Spain due to the high penetration of convergent offers in Telefónica Spain, the revenue breakdown by fixed and mobile is less relevant in this segment. For this reason, management believes that the revenue breakdown shown below is more meaningful.
Millions of euros |  |  |
Telefónica Spain | 2024 | 2023 | 2022 |  |  |  |  |  |  |  |  |
Retailers | 10,092 |  | 9,872 |  | 9,662 |  |  |  |  |  |  |  |  |  |
Wholesalers, mobile handsets sales and others | 2,699 |  | 2,782 |  | 2,835 |  |  |  |  |  |  |  |  |  |
Total | 12,791 |  | 12,654 |  | 12,497 |  |  |  |  |  |  |  |  |  |

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