UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of July, 2024

Commission File Number: 001-09531

Telefónica, S.A.
(Translation of registrant's name into English)

Distrito Telefónica, Ronda de la Comunicación s/n,
28050 Madrid, Spain
3491-482 87 00
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F
X
Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes
NoX

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes
NoX






Telefónica, S.A.


TABLE OF CONTENTS


ItemSequential Page Number
1.Telefónica - Half yearly financial Report January June 20242




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Condensed Consolidated Interim Financial Statements 2024
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Index

Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated statements of financial position
Millions of eurosNotes
06/30/2024
12/31/2023
ASSETS
A) NON-CURRENT ASSETS81,161 83,568 
Intangible assets10,625 11,370 
Goodwill17,874 18,708 
Property, plant and equipment22,317 22,944 
Rights of use7,671 8,448 
Investments accounted for by the equity method8,845 8,590 
Financial assets and other non-current assets7,730 7,268 
Deferred tax assets6,099 6,240 
B) CURRENT ASSETS20,652 20,756 
Inventories986 929 
Receivables and other current assets10,097 10,132 
Tax receivables1,389 1,193 
Other current financial assets2,243 1,078 
Cash and cash equivalents5,268 7,151 
Non-current assets and disposal groups held for sale669 273 
TOTAL ASSETS (A+B)101,813 104,324 
Notes06/30/202412/31/2023
EQUITY AND LIABILITIES
A) EQUITY24,753 27,096 
Equity attributable to equity holders of the parent and other holders of equity instruments21,016 21,852 
Equity attributable to non-controlling interests3,737 5,244 
B) NON-CURRENT LIABILITIES52,890 53,829 
Non-current financial liabilities33,813 33,360 
Non-current lease liabilities5,824 6,708 
Payables and other non-current liabilities3,631 3,605 
Deferred tax liabilities2,885 2,702 
Non-current provisions6,737 7,454 
C) CURRENT LIABILITIES24,170 23,399 
Current financial liabilities4,467 3,701 
Current lease liabilities2,171 2,239 
Payables and other current liabilities14,218 13,957 
Current tax payables1,397 1,869 
Current provisions1,547 1,596 
Liabilities associated with non-current assets and disposal groups held for sale370 37 
TOTAL EQUITY AND LIABILITIES (A+B+C)101,813 104,324 
Unaudited data at June 30, 2024. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 3
Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated income statements
Millions of eurosNotes
January- June 2024
January- June 2023
Revenues20,395 20,178 
Other income569 664 
Supplies(6,496)(6,550)
Personnel expenses(2,890)(2,936)
Other expenses(5,154)(5,090)
Depreciation and amortization(Notes 4, 5, 7 and 21)(4,361)(4,348)
OPERATING INCOME2,063 1,918 
Share of income (loss) of investments accounted for by the equity method18 (14)
Finance income528 606 
Exchange gains1,196 1,011 
Finance costs(1,573)(1,430)
Exchange losses(930)(977)
Net financial expense(779)(790)
PROFIT BEFORE TAX1,302 1,114 
Corporate income tax(229)(230)
PROFIT FOR THE PERIOD1,073 884 
Attributable to equity holders of the Parent979 760 
Attributable to non-controlling interests94 124 
Basic and diluted earnings per share attributable to equity holders of the parent (euros)0.15 0.11 
Unaudited data. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 4
Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated statements of comprehensive income
Millions of eurosJanuary - June
2024		January - June
2023
Profit for the period1,073 884 
Other comprehensive (loss) income(281)1,423 
Gains (losses) from financial assets measured at Fair value through comprehensive income
12 13 
Income tax impact(3)(5)
9 8 
 Gains (losses) on hedges781 (380)
Income tax impact(206)80 
Reclassification of (gains) losses included in the income statement (445)22 
Income tax impact114 (4)
244 (282)
Gains (losses) on hedges costs77 21 
Income tax impact(19)(5)
Reclassification of (gains) losses included in the income statement (4)(5)
Income tax impact1 1 
55 12 
Share of gains (losses) recognized directly in equity of associates and others8 (10)
Income tax impact— — 
8 (10)
Translation differences (712)1,595 
Total other comprehensive (loss) income recognized in the period (Items that may be reclassified subsequently to profit or loss)(396)1,323 
Actuarial gains (losses) and impact of limit on assets for defined benefit pension plans27 9 
Income tax impact(5)(4)
22 5 
Gains (losses) from financial assets measured at fair value through comprehensive income96 71 
Income tax impact— — 
Reclassification to reserve of gains (losses) from financial assets measured at Fair value through comprehensive income— 24 
96 95 
Share of (losses) gains recognized directly in equity of associates(3)— 
(3)— 
Total other comprehensive income (loss) recognized in the period (Items that will not be reclassified subsequently to profit or loss)115 100 
Total comprehensive income (loss) recognized in the period792 2,307 
Attributable to: 
Equity holders of the parent and other holders of equity instruments1,060 1,918 
Non-controlling interests(268)389 
792 2,307 
Unaudited data. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 5
Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated statements of changes in equity
Attributable to equity holders of the parent and other holders of equity instrumentsNon-controlling interests Total equity
Millions of eurosShare capitalShare premiumTreasury SharesOther equity instrumentsLegal reserveRetained earningsFair value financial assetsHedgesEquity of associates and othersTranslation differencesTotal
Financial position at December 31, 2023
5,750 3,751 (429)7,550 1,059 24,895 (301)313 (50)(20,686)21,852 5,244 27,096 
Profit for the period— — — — — 979 — — — — 979 94 1,073 
Other comprehensive income (loss) for the period— — — — — 15 104 255 61 (354)81 (362)(281)
Total comprehensive income (loss) for the period— — — — — 994 104 255 61 (354)1,060 (268)792 
Dividends and distribution of profit (Note 15)— — — — 91 (1,782)— — — — (1,691)(55)(1,746)
Capital reduction (Nota 15)(80)(230)310 — — — — — — — — — — 
Net movement in treasury shares— — (8)— — (76)— — — — (84)— (84)
Acquisitions and disposals of non-controlling interests and business combinations (Note 2)— — — — — 42 — — — — 42 (1,184)(1,142)
Undated deeply subordinated securities (Note 15)— — — 3 — (146)— — — — (143)— (143)
Other movements— — — — — (20)— — — — (20)— (20)
Financial position at June 30, 2024
5,670 3,521 (127)7,553 1,150 23,907 (197)568 11 (21,040)21,016 3,737 24,753 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 6
Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated statements of changes in equity
Attributable to equity holders of the parent and other holders of equity instrumentsNon-controlling interests Total equity
Millions of eurosShare capitalShare premiumTreasury SharesOther equity instrumentsLegal reserveRetained earningsAvailable-for-sale investmentsHedgesEquity of associates and othersTranslation differencesTotal
Financial position at December 31, 2022
5,775 3,824 (341)7,550 1,059 27,698 (449)725 (30)(20,723)25,088 6,620 31,708 
Profit for the period— — — — — 760 — — — — 760 124 884 
Other comprehensive income (loss) for the period— — — — — 4 103 (276)2 1,325 1,158 265 1,423 
Total comprehensive income (loss) for the period— — — — — 764 103 (276)2 1,325 1,918 389 2,307 
Dividends and distribution of profit (Note 15)— — — — — (1,701)— — — — (1,701)(229)(1,930)
Capital reduction(25)(73)98 — — — — — — — — — — 
Net movement in treasury shares — — (73)— — (26)— — — — (99)— (99)
Acquisitions and disposals of non-controlling interests and business combinations (Note 2)— — — — — (57)— — — — (57)(647)(704)
Undated deeply subordinated securities — — — — — (140)— — — — (140)— (140)
Other movements— — — — — 46 — — — — 46 — 46 
Financial position at June 30, 2023
5,750 3,751 (316)7,550 1,059 26,584 (346)449 (28)(19,398)25,055 6,133 31,188 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.

Telefónica, S.A. 7
Condensed Consolidated Interim Financial Statements 2024
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Telefónica Group
Consolidated statements of cash flows
Millions of eurosNotesJanuary - June
2024		January - June
2023
Cash received from operations(Note 25)24,509 23,790 
Cash paid from operations(Note 25)(18,495)(17,723)
Net payments of interest and other financial expenses net of dividends received(Note 25)(858)(512)
Taxes (paid)/proceeds(Note 25)(556)(266)
Net cash flow provided by operating activities(Note 25)4,600 5,289 
(Payments on investments)/proceeds from the sale in property, plant and equipment and intangible assets, net(Note 25)(3,011)(3,034)
Proceeds on disposals of companies, net of cash and cash equivalents disposed(Note 25)7 969 
Payments on investments in companies, net of cash and cash equivalents acquired(Note 25)(58)(56)
Proceeds on financial investments not included under cash equivalents(Note 25)622 897 
Payments on financial investments not included under cash equivalents(Note 25)(641)(504)
(Payments)/proceeds for temporary financial investments(1,024)577 
Net cash flow used in investing activities(Note 25)(4,105)(1,151)
Dividends paid(Note 25)(972)(1,141)
Proceeds from share capital increase with minority interest(Note 25)— 113 
(Payments)/proceeds of treasury shares and other operations with shareholders and with minority interests(Note 25)(1,135)(800)
Operations with other equity holders(Note 25)(200)(195)
Proceeds on issuance of debentures and bonds, and other debts(Note 25)1,750 — 
Proceeds on loans, borrowings and promissory notes(Note 25)1,098 962 
Repayments of debentures and bonds, and other debts(Note 25)(1,112)(1,352)
Repayments of loans, borrowings and promissory notes(Note 25)(501)(525)
Lease principal payments(Note 21)(1,130)(1,076)
Financed operating payments and investments in property, plant and equipment and intangible assets payments(Note 16)(101)(84)
Net cash used in financing activities(Note 25)(2,303)(4,098)
Effect of changes in exchange rates(81)15 
Cash reclassified to assets held for sale(Note 27)6 (10)
Net increase (decrease) in cash and cash equivalents during the period(1,883)45 
CASH AND CASH EQUIVALENTS AT JANUARY 1(Note 14)7,151 7,245 
CASH AND CASH EQUIVALENTS AT JUNE 30(Note 14)5,268 7,290 
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITH THE STATEMENT OF FINANCIAL POSITION
BALANCE AT JANUARY 1(Note 14)7,151 7,245 
Cash on hand and at banks6,265 6,653 
Other cash equivalents886 592 
BALANCE AT JUNE 30(Note 14)5,268 7,290 
Cash on hand and at banks4,028 6,118 
Other cash equivalents1,240 1,172 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 8
Condensed Consolidated Interim Financial Statements 2024
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Telefónica, S.A. and subsidiaries composing the Telefónica Group

Notes to the condensed consolidated interim financial statements for the six-months ended June 30, 2024
Telefónica, S.A. 9
Condensed Consolidated Interim Financial Statements 2024
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Note 1. Background and general information
Telefónica, S.A. and its subsidiaries and investees (hereinafter “Telefónica”, “the Company”, the “Telefónica Group” or "the Group”) make up an integrated and diversified telecommunications group operating mainly in Europe and Latin America. The Group’s activity is centered around services of wireline and wireless telephony, broadband, internet, data traffic, Pay TV and other digital services.
The parent company of the Group is Telefónica, S.A., a public limited company incorporated on April 19, 1924 for an indefinite period. Its registered office is at calle Gran Vía 28, Madrid (Spain).
As a multinational telecommunications company which operates in regulated markets, the Group is subject to different laws and regulations in each of the jurisdictions in which it operates, pursuant to which permits, concessions or licenses must be obtained in certain circumstances to provide the various services.
In addition, certain wireline and wireless telephony services are provided under regulated rate and price systems.

Note 2. Basis of presentation of the consolidated financial statements
The condensed consolidated interim financial statements for the six-month period ended June 30, 2024 (hereinafter, the “interim financial statements”) have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting and Article 12 of Royal Decree 1362/2007, of October 19. Therefore, they do not contain all the information and disclosures required in complete annual consolidated financial statements and, for adequate interpretation, should be read in conjunction with the consolidated financial statements (Consolidated annual accounts) for the year ended December 31, 2023.
The accompanying interim financial statements were approved by the Company’s Board of Directors at its meeting of July 30, 2024.
The figures in these interim financial statements are expressed in millions of euros, unless otherwise indicated, and may therefore be rounded.
Comparison of information
Comparisons in the accompanying interim financial statements refer to the six-month periods ended June 30, 2024 and 2023, except in the consolidated statement of financial position, which compares information at June 30, 2024 and at December 31, 2023.
The main changes in the consolidation scope are described in Appendix I.
With respect to seasonality, the historical performance of consolidated results does not indicate that the operations of the Group, taken as a whole, are subject to significant variations between the first and second halves of the year.
Exchange rates evolution
Variation of average exchange rates versus euro
First half
(2024 vs 2023)
Brazilian real(0.2 %)
Pound sterling2.5 %
New peruvian sol0.2 %
Chilean peso(14.3 %)
Colombian peso16.8 %
Mexican peso6.1 %
Telefónica, S.A. 10
Condensed Consolidated Interim Financial Statements 2024
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Variation of closing exchange rates versus euro06/30/2024 vs 12/31/2023
Brazilian real(10.0 %)
Pound sterling2.7 %
New Peruvian sol0.0 %
Argentine peso (*)
(8.4 %)
Chilean peso(4.0 %)
Colombian peso(4.8 %)
Mexican peso(4.2 %)
(*) Given Argentina's hyperinflationary economy, the income statement and cash flow statement of companies operating in this country, after adjustment for inflation, are converted at the closing exchange rate. The inflation rate in Argentina for the first half of 2024 has been 79.8% (50.7% in the first half of 2023).
In the first half of 2024, there was a negative impact on Equity attributable to equity holders of the Parent Company for translation differences amounting to 354 million euros (see Note 15), mainly due to the depreciation of the Brazilian real.
Public Offer for the Acquisition of Shares of Telefónica Deutschland
On November 7, 2023, Telefónica, through its subsidiary Telefónica Local Services GmbH, launched a partial voluntary public tender offer for shares of Telefónica Deutschland Holding AG (“Telefónica Deutschland”). The Offer acceptance period began on December 5, 2023 and ended on January 17, 2024.
At the date of the Offer announcement, Telefónica was the owner, directly or indirectly, of 71.81% of the share capital and voting rights of Telefónica Deutschland and, consequently, the Offer was announced on shares representing approximately the remaining 28.19%.
On December 31, 2023, Telefónica owned 82.43% of the share capital of Telefónica Deutschland (70.58% as of December 31, 2022), having made direct purchases on the market for an amount of 816 million euros.
These purchases made in 2023 produced an increase of 46 million euros in the equity attributed to the parent company and a decrease of 866 million euros in the equity attributed to minority interests.
The Offer was settled on January 26, 2024 reaching 94.12% of the share capital, including acquisitions through the Offer and acquisitions in the market until that date.
On March 7, 2024, a public exclusion offer was launched with the objective of acquiring the shares of Telefónica Deutschland that at that time were not directly or indirectly owned by Telefónica (the “Exclusion Offer”). The consideration offered to Telefónica Deutschland shareholders was 2.35 euros in cash for each share. The completion of the offer was on April 18, 2024.
Once the exclusion offer was completed, and also linked to direct purchases on the market, Telefónica reached 96.85% of the share capital and voting rights of Telefónica Deutschland.
These purchases made in the first half of 2024 produced an increase of 27 million euros in the equity attributed to the parent company and a decrease of 1,058 million euros in the equity attributed to minority interests (see Note 15).
Alternative measures not defined in IFRS
The Management of the Group uses a series of measures in its decision-making, in addition to those expressly defined in the IFRS, because they provide additional information useful to assess the Group’s performance, solvency and liquidity. These measures should not be viewed in isolation or as a substitute for the measures presented according to the IFRS.
Modifications in 2024
Starting in 2024, Telefónica has made modifications to some of its alternative performance measures. The purpose of the change is to simplify and strengthen the alignment of financial objectives with the consolidated results reported, facilitating their understanding.
In recent years, EBITDA (previously called Operating profit before depreciation and amortization, or OIBDA) had been the main operating measure for the Group's objectives. Currently, in addition to EBITDA, the Company has provided objectives on CapEx ex spectrum and EBITDAaL-CapEx ex spectrum, implicitly indicating EBITDAaL, in line with sector trends and taking into account the importance of leases in operations. For this reason, EBITDA (previously OIBDA) is no longer explicitly presented in the consolidated income statements, although its reconciliation with the Profit for the period is presented below, along with the rest of the operating metrics.
Likewise, in 2024 the definition of the Free Cash Flow measure has been modified. Now the coupon payments of hybrid instruments (undated deeply subordinated securities), the payments of employee benefit commitments (payment of the principal of the debt contracted), are deducted, and only the dividends received from the VMO2 joint venture are considered when they come from the free cash flow generated by this company (thus excluding cash inflows from possible recapitalizations of VMO2 which are decided annually based on market conditions). In this way, a clearer view of recurring available cash generation is provided.
Telefónica, S.A. 11
Condensed Consolidated Interim Financial Statements 2024
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The definitions of the debt indicators (Net financial debt, Net financial debt plus leases, and Net financial debt plus leases and plus commitments) have not been modified.
Below is the definition of the main alternative measures not defined in the IFRS used by the Group, and their reconciliation with the financial statements.
EBITDA, EBITDAaL and EBITDAaL-CapEx ex spectrum
EBITDA is calculated by excluding from the result of the period 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.
EBITDAaL (EBITDA after Leases) is calculated by deducting from EBITDA the expenses for amortization of the rights of use and the interest on lease liabilities (see Note 21).
EBITDAaL-CapEx ex spectrum is defined as EBITDAaL less investment in intangible assets and property, plant and equipment (CapEx), excluding those investments related to spectrum acquisitions.
We believe it is important to consider CapEx excluding spectrum acquisitions, along with EBITDAaL to more comprehensively evaluate the performance of the telecom business.
The Group uses these measures internally to evaluate business performance, to establish operational and strategic objectives and in the budgeting process. EBITDA, EBITDAaL and EBITDAaL-CapEx are commonly reported and widespread measures among analysts, investors and other stakeholders in the telecommunications sector, although they are not indicators defined in IFRS and may, therefore, not be comparable with other similar indicators used by other companies. These measures should not be considered as substitutes for Operating income.
The following table details the reconciliation between EBITDA, EBITDAaL and EBITDAaL-CapEx ex spectrum with the Telefónica Group's Profit for the period for the half-year periods ended June 30, 2024 and 2023:
Millions of euros
January - June 2024
January - June 2023
Profit for the period1,073 884 
Corporate income tax229 230 
Profit before taxes1,302 1,114 
Net financial expense779 790 
Share of income (loss) of investments accounted for the equity method(18)14 
Operating income2,063 1,918 
Depreciation and amortization4,361 4,348 
EBITDA6,424 6,266 
Leases amortization (Note 21)(1,121)(1,051)
Financial expenses on lease liabilities (Note 21)(256)(197)
Operating income before depreciation and amortization and after leases (EBITDAaL)5,047 5,018 
Capital expenditures in intangible assets (Note 5)767 612 
Capital expenditures in property, plant and equipment (Note 7)1,593 1,792 
CapEx2,360 2,404 
Spectrum acquisitions (Note 5)(61)(12)
CapEx excluding spectrum acquisitions2,299 2,392 
EBITDAaL - CapEx excluding spectrum acquisitions2,748 2,626 
Telefónica, S.A. 12
Condensed Consolidated Interim Financial Statements 2024
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The following tables present the reconciliation of EBITDA, EBITDAaL and EBITDAaL-CapEx ex spectrum to Operating income for each business segment for the six-month periods ended June 30, 2024 and 2023:
January - June 2024
Millions of eurosTelefónica SpainTelefónica GermanyTelefónica BrazilTelefónica HispamOther companiesElimina-tionsTotal Group
Operating income1,123 221 786 4 (180)109 2,063 
Depreciation and amortization1,108 1,111 1,250 778 130 (16)4,361 
EBITDA2,231 1,332 2,036 782 (50)93 6,424 
Rights of use amortization(286)(340)(305)(186)(13)9 (1,121)
Financial expenses for leases(28)(28)(145)(55)(2)2 (256)
EBITDAaL1,917 964 1,586 541 (65)104 5,047 
CapEx720 466 770 343 67 (6)2,360 
Spectrum acquisitions— — (2)(59)— — (61)
CapEx excluding spectrum acquisitions720 466 768 284 67 (6)2,299 
EBITDAaL - CapEx excluding spectrum acquisitions1,197 498 818 257 (132)110 2,748 
January - June 2023
Millions of eurosTelefónica SpainTelefónica GermanyTelefónica BrazilTelefónica HispamOther companiesElimina-tionsTotal Group
Operating income1,140 122 710 (23)(18)(13)1,918 
Depreciation and amortization1,083 1,153 1,195 821 115 (19)4,348 
EBITDA2,223 1,275 1,905 798 97 (32)6,266 
Rights of use amortization(238)(327)(304)(180)(11)9 (1,051)
Financial expenses for leases(16)(13)(118)(48)(1)(1)(197)
EBITDAaL1,969 935 1,483 570 85 (24)5,018 
CapEx754 504 704 337 105 — 2,404 
Spectrum acquisitions(20)— 33 (24)(1)— (12)
CapEx excluding spectrum acquisitions734 504 737 313 104 — 2,392 
EBITDAaL - CapEx excluding spectrum acquisitions1,235 431 746 257 (19)(24)2,626 
Debt indicators
As calculated by us, net financial debt includes:
A. Adding the following liabilities:
i. Current and non-current financial liabilities in our consolidated statement of financial position (which includes the negative mark-to-market value of derivatives),
ii. Other liabilities included in "Payables and other non-current liabilities", "Payables and other current liabilities" and "Current tax payables" (mainly corresponding to payables for deferred payment of radio spectrum that have an explicit financial
component and supplier financing for customer financing of terminal sales), and
iii. Financial liabilities included in "Liabilities associated with non-current assets held for sale".
B. Subtracting the following amounts from the resulting amount of the preceding step:
i. Cash and cash equivalents,
ii. Other current financial assets (which include short-term derivatives),
Telefónica, S.A. 13
Condensed Consolidated Interim Financial Statements 2024
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iii. Cash and other financial assets included in "Non-current assets and disposal groups classified as held for sale",
iv. The positive mark-to-market value of derivatives with a maturity beyond one year,
v. Other interest-bearing assets (included in "Financial assets and other non-current assets", "Receivables and other current assets" and "Tax receivables" in our consolidated statement of financial position). "Financial assets and other non-current assets" includes derivatives, instalments for the long-term sales of terminals to customers and other long-term financial assets, and "Receivables and other current assets" includes the customer financing of terminal sales classified as short-term.
vi. Mark-to-market adjustment by cash flow hedging activities related to debt.
vii. Fair value of derivatives adjustment used for the economic hedging of gross commitments related to employee benefits.
The indicator net financial debt plus leases is calculated by adding lease liabilities calculated under IFRS 16 (including those corresponding to companies held for sale) to net financial debt and deducting assets from subleases.
We calculate net financial debt plus commitments by adding gross commitments related to employee
benefits and the fair value of the derivatives used for the economic hedging of such commitments to net financial debt, and deducting the value of long-term assets associated with those commitments related to employee benefits and the tax benefits arising from the future payments of those commitments related to employee benefits. Gross commitments related to employee benefits are current and non-current provisions recorded for certain employee benefits such as termination plans, post-employment defined benefit plans and other benefits.
We believe that net financial debt, net financial debt plus leases, net financial debt plus commitments and net financial debt plus leases plus commitments are meaningful for investors and analysts because they provide an analysis of our solvency using the same measures used by our management. We use them to calculate internally certain solvency and leverage ratios. Nevertheless, none of them as calculated by us should be considered as a substitute for gross financial debt as presented in the consolidated statement of financial position.
The following table details the reconciliation between the gross financial debt according to the consolidated statement of financial position, the net financial debt, the net financial debt plus leases, the net financial debt plus commitments and the net financial debt plus leases plus commitments of the Group Telefónica as of June 30, 2024 and December 31, 2023:
Telefónica, S.A. 14
Condensed Consolidated Interim Financial Statements 2024
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Millions of euros
06/30/2024
12/31/2023
Non-current financial liabilities33,813 33,360 
Current financial liabilities4,467 3,701 
Gross financial debt (Note 16)38,280 37,061 
Cash and cash equivalents(5,268)(7,151)
Other assets included in "Other current financial assets"(2,232)(1,066)
Cash and other financial assets included in "Non-current assets and disposal groups classified as held for sale"(8)(13)
Positive mark-to-market value of long-term derivative instruments (notes 10 and 17)(2,573)(1,940)
Other liabilities included in "Payables and other non-current liabilities"1,834 1,750 
Other liabilities included in "Payables and other current liabilities" and "Current tax payables"460 446 
Other assets included in "Financial assets and other non-current assets"(1,288)(1,481)
Other assets included in "Receivables and other current assets"(696)(711)
Other current assets included in "Tax receivables"— — 
Financial liabilities included in "Liabilities associated with non-current assets held for sale"104 — 
Mark-to-market adjustment by cash flow hedging activities related to debt849 659 
Fair value of derivatives adjustment used for the economic hedging of gross commitments related to employee benefits(222)(205)
Net financial debt29,240 27,349 
Lease liabilities8,196 8,920 
Net financial debt plus leases37,436 36,269 
Gross commitments related to employee benefits and associated economic hedging5,620 6,159 
Value of associated long-term assets(117)(114)
Tax benefits(1,388)(1,535)
Net commitments related to employee benefits4,115 4,510 
Net financial debt plus commitments33,355 31,859 
Net financial debt plus leases plus commitments (*)
41,551 40,779 
(*) Includes assets and liabilities considered to be Net financial debt plus leases plus commitments related to employee benefits for companies classified as
held for sale (see Note 27).
Free Cash Flow
The Group’s free cash flow is calculated starting from “Net cash flow provided by operating activities” as indicated in the consolidated statement of cash flows (see Note 25); deducting (Payments on investments)/Proceeds from the sale of investments in property, plant and equipment and intangible assets, net, (excluding spectrum payments), dividends paid to minority shareholders, hybrid instruments coupons payments and lease principal payments. Possible recapitalizations are excluded from the collection of dividends received from the VMO2 joint venture.
We believe that free cash flow is a meaningful measure for investors and analysts because it provides an analysis of the cash flow available to protect solvency
levels and to remunerate the parent company’s shareholders. The same measure is used internally by our management. Nevertheless, free cash flow as calculated by us should not be considered as a substitute for the various flows of cash as presented in the consolidated statements of cash flows.
The following table presents the reconciliation between Telefónica Group’s Net cash flow provided by operating activities as indicated in the consolidated statement of cash flows (see Note 25) and the free cash flow according to the new definition explained above for the six-months periods ended June 30, 2024 and 2023:
Telefónica, S.A. 15
Condensed Consolidated Interim Financial Statements 2024
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Millions of eurosEnero - junio 2024Enero - junio 2023
Net cash flow provided by operating activities (Note 25)4,600 5,289 
Except: dividends received from VMO2 from recapitalizations (Note 25)— (373)
(Payments on investments)/Proceeds from the sale of property, plant and equipment and intangible assets, net (Note 25)(3,011)(3,034)
Except: Spectrum payments (Note 25)12 26
Dividends paid to minority shareholders (Note 25)(108)(288)
Hybrid instruments coupon payments (Note 25)(200)(195)
Lease principal payments (notes 21 and 25)(1,130)(1,076)
Free cash flow163 349 
Note 3. Accounting policies
The accounting policies applied in the preparation of the interim financial statements for the six-month period ended June 30, 2024 are consistent with those used in the preparation of the Group’s consolidated annual financial statements for the year ended December 31, 2023, except for the following new amendments to existing standards published by the International Accounting Standards Board (IASB) and endorsed by the European Union for application in Europe, which are effective for annual periods beginning on or after January 1, 2024.
The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these new pronouncements.
Classification of Liabilities as Current or Non-Current – Amendments to IAS 1
The amendments clarify whether debt and other liabilities with an uncertain settlement date should be classified as current or non-current in the statement of financial position, depending on the rights that exist at the end of the reporting period. The amendments also address the classification requirements for debt a company might settle by converting it into equity.
The amendments clarify, not change, existing requirements and affect only the presentation of liabilities in the statement of financial position — not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items.
The application of these amendments for the current reporting period did not have a significant impact on the Group’s interim financial statements.
Non-current Liabilities with Covenants – Amendments to IAS 1
These amendments are intended to improve the information companies provide about long-term debt with covenants by enabling investors to understand the risk that such debt could become repayable within twelve months.
IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the debt in the 12 months after the reporting date. However, a company’s ability to do so is often subject to complying with covenants. These amendments specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements.
The application of these amendments for the current reporting period did not have a significant impact on the Group’s interim financial statements.
Lease Liability in a Sale and Leaseback Transaction – Amendments to IFRS 16
These narrow-scope amendments to IFRS 16 provide specific guidelines for measuring the lease liability arising in sale and leaseback transactions for seller-lessees in a way that does not result in the recognition of any amount of the gain or loss that relates to the right of use it retains.
The application of these amendments for the current reporting period did not have a significant impact on the Group’s interim financial statements.
Telefónica, S.A. 16
Condensed Consolidated Interim Financial Statements 2024
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Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7
These amendments clarify the characteristics of supplier finance arrangements and introduce new disclosure requirements about such arrangements. The new disclosures are intended to provide information that enables investors to understand the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk.
As a transitional relief, during this first year of application, entities are not required to disclose specified opening balances or comparative information, and the new disclosures are only required for annual
periods (i.e. the new disclosures are not required for interim periods). Thus, the amendments had no impact on the Group’s interim financial statements.
New standards and amendments to standards issued but not effective as of June 30, 2024
At the date of preparation of the interim consolidated financial statements, the following IFRS and amendments had been published by the IASB, but their application was not mandatory:
Standards and Amendments to StandardsMandatory application: annual periods beginning on or after
Amendments to IAS 21Lack of ExchangeabilityJanuary 1, 2025
Amendments to IFRS 9 and IFRS 7Amendments to the Classification and Measurement of Financial InstrumentsJanuary 1, 2026
Annual Improvements to IFRS Accounting Standards—Volume 11January 1, 2026
IFRS 18Presentation and Disclosure in Financial StatementsJanuary 1, 2027
IFRS 19Subsidiaries without Public Accountability: DisclosuresJanuary 1, 2027
The Group is currently assessing the impact that the adoption of these new pronouncements will have on the consolidated financial statements in the initial period of application. In particular, the application of the amendment to IAS 21 regarding the lack of currency exchangeability, which has been published but is not yet effective, could have a significant impact on the Group’s consolidated financial statements both upon adoption and prospectively. This amendment requires an entity to apply a consistent approach to assessing whether a currency is exchangeable into another currency at a measurement date and for a specified purpose and, when it is not, to determining the exchange rate to use and the disclosures to provide.
Telefónica, S.A. 17
Condensed Consolidated Interim Financial Statements 2024
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Note 4. Segment financial information
In 2024 the Telefónica Group is reporting financial information, both internally and externally, according to the following segments: Telefónica Spain, VMO2 (accounted for under 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). There have been no changes in the definition of the segments with respect to the previous year.
The segments referred to above include the information related to the fixed, wireless, cable, data, internet and television and other digital services provided in each country. Inter-segment transactions are carried out at market prices.
Information relating to other Group companies not specifically included in these segments is reported under "Other companies", which includes Telefónica, S.A. and other holding 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, 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 fiber optic companies in which Telefónica Infra, S.L. has ownership interests (see Note 8).
The Group centrally manages borrowing activities, mainly through Telefónica, S.A. and other companies not included in the segments, 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. Therefore, a significant part of the deferred tax assets and liabilities are included under "Other companies". For these reasons, the results of the segments are disclosed up to 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. In this sense, the assets and liabilities presented in each segment are those managed by the heads of each segment, regardless of their legal structure.
Telefónica, S.A. 18
Condensed Consolidated Interim Financial Statements 2024    
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The following table presents income, CapEx information (capital expenditures in intangible assets and property, plant and equipment, see Notes 5 and 7) and acquisitions of rights of use (see Note 21) of the fully consolidated reportable segments:
January - June 2024
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Revenues6,245 — 4,189 4,960 4,304 1,808 (1,111)20,395 
External revenues6,113 — 4,175 4,953 4,249 903 2 20,395 
Inter-segment revenues132 — 14 7 55 905 (1,113)— 
Other operating income and expenses (1)
(4,014)— (2,857)(2,924)(3,522)(1,858)1,204 (13,971)
EBITDA2,231 — 1,332 2,036 782 (50)93 6,424 
Depreciation and amortization(1,108)— (1,111)(1,250)(778)(130)16 (4,361)
Operating income1,123 — 221 786 4 (180)109 2,063 
Share of (loss) income of investments accounted for by the equity method(9)62 — — (10)(25)— 18 
Capital expenditures (CapEx)720 — 466 770 343 67 (6)2,360 
Acquisitions of rights of use173 — 186 229 159 21 (3)765 
(1) Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
Telefónica, S.A. 19
Condensed Consolidated Interim Financial Statements 2024    
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January - June 2023
Millions of eurosTelefónica
Spain		VMO2 Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Revenues6,183 — 4,192 4,645 4,489 1,718 (1,049)20,178 
External revenues6,024 — 4,178 4,637 4,440 897 2 20,178 
Inter-segment revenues159 — 14 8 49 821 (1,051)— 
Other operating income and expenses (1)
(3,960)— (2,917)(2,740)(3,691)(1,621)1,017 (13,912)
EBITDA2,223 — 1,275 1,905 798 97 (32)6,266 
Depreciation and amortization(1,083)— (1,153)(1,195)(821)(115)19 (4,348)
Operating income1,140 — 122 710 (23)(18)(13)1,918 
Share of (loss) income of investments accounted for by the equity method(9)16 — — 5 (26)— (14)
Capital expenditures (CapEx)754 — 504 704 337 105 — 2,404 
Acquisitions of rights of use292 — 362 98 205 10 (18)949 
(1) Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
Telefónica, S.A. 20
Condensed Consolidated Interim Financial Statements 2024    
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The table below shows the income, CapEx and acquisitions of rights of use of VMED O2 UK Ltd. VMED O2 UK Ltd is a joint venture 50% owned by Telefónica and Liberty Group and is recorded under the equity method (see Note 8). The tables below show the information of the joint venture at 100%.
VMO2
Millions of eurosJanuary-June, 2024January-June, 2023
Revenues6,157 6,063 
Other operating income and expenses(3,969)(3,959)
EBITDA2,188 2,104 
Depreciation and amortization(1,667)(2,019)
Operating income521 85 
Share of income (loss) of investments accounted for by the equity method1 2 
Financial income24 18 
Financial expenses(788)(664)
Realised and unrealised gains on derivative instruments, net332 (27)
Foreign currency transaction losses, net(19)644 
Net financial expense(451)(29)
Result before taxation71 58 
Taxes(35)(37)
Result for the period (100% VMO2)36 21 
50% attributable to Telefónica Group18 10 
Share-based compensation 1 6 
Sale of a minority interest
in Cornerstone
46 — 
Other adjustments(3)— 
Share of income (loss) of investments accounted for by the equity method62 16 
Capital expenditures (CapEx) (100% VMO2)1,254 1,209 
Acquisitions of rights of use (100% VMO2)162 61 
Telefónica, S.A. 21
Condensed Consolidated Interim Financial Statements 2024    
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The segmentation of assets and liabilities of the reportable segments is as follows:
June 2024
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Fixed assets14,080 — 10,800 16,706 7,021 2,219 (10)50,816 
Rights of use 1,653 — 3,038 1,949 977 121 (67)7,671 
Investments accounted for by the equity method226 8,048 — 4 205 362 — 8,845 
Financial assets and other non-currents assets1,083 — 856 973 1,529 7,758 (4,469)7,730 
Deferred tax assets2,539 — 561 327 770 1,902 — 6,099 
Other current financial assets34 — 16 61 295 5,165 (3,328)2,243 
Non-current assets and disposal groups held for sale— — — — 669 — — 669 
Total allocated assets26,814 8,048 17,701 24,012 15,537 23,658 (13,957)101,813 
Non-current financial liabilities748 — 1,098 610 6,046 29,883 (4,572)33,813 
Non-current lease liabilities1,077 — 2,279 1,588 870 47 (37)5,824 
Deferred tax liabilities77 — 261 843 776 928 — 2,885 
Current financial liabilities1,207 — 559 36 1,334 7,421 (6,090)4,467 
Current lease liabilities 479 — 607 706 384 19 (24)2,171 
Liabilities associated with non-current assets and disposal groups held for sale
— — — — 370 — — 370 
Total allocated liabilities15,965 — 9,467 9,454 13,639 42,430 (13,895)77,060 
Telefónica, S.A. 22
Condensed Consolidated Interim Financial Statements 2024    
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December 2023
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Fixed assets14,186 — 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 method233 7,774 — 3 219 361 — 8,590 
Financial assets and other non-currents assets1,058 — 962 1,054 1,374 7,384 (4,564)7,268 
Deferred tax assets2,676 — 538 406 738 1,882 — 6,240 
Other current financial assets36 — 10 55 272 3,660 (2,955)1,078 
Non-current assets and disposal groups held for sale— — — — 273 — — 273 
Total allocated assets27,119 7,774 18,565 26,114 15,019 23,096 (13,363)104,324 
Non-current financial liabilities695 — 1,235 688 6,164 28,948 (4,370)33,360 
Non-current lease liabilities1,223 — 2,559 1,817 1,111 44 (46)6,708 
Deferred tax liabilities82 — 254 927 601 838 — 2,702 
Current financial liabilities1,458 — 286 48 768 6,960 (5,819)3,701 
Current lease liabilities486 — 555 725 476 20 (23)2,239 
Liabilities associated with non-current assets and disposal groups held for sale— — — — 37 — — 37 
Total allocated liabilities16,869 — 9,937 9,837 13,720 40,159 (13,294)77,228 
Telefónica, S.A. 23
Condensed Consolidated Interim Financial Statements 2024    
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The detail of assets and liabilities of VMED O2 UK Ltd is as follows (amounts corresponding to 100% of the company, see Note 8):
VMO2
Millions of euros30/6/202431/12/2023
Fixed assets39,542 38,817 
Rights of use831 773 
Financial assets and other non-currents assets1,765 1,741 
Deferred tax assets350 366 
Other current financial assets767 569 
Total assets47,663 46,455 
Non-current financial liabilities21,433 21,061 
Non-current lease liabilities732 663 
Deferred tax liabilities1 1 
Current financial liabilities4,529 4,165 
Current lease liabilities187 201 
Total liabilities31,467 30,727 
Telefónica, S.A. 24
Condensed Consolidated Interim Financial Statements 2024    
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The detail of revenues of the fully consolidated reportable segments is as follows:
Millions of eurosJanuary - June 2024January - June 2023
SegmentsFixedMobileOther and elims.TotalFixedMobileOther and elims.Total
T. Spain (1)
6,245 6,183 
T. Germany424 3,754 11 4,189 409 3,774 9 4,192 
T. Brazil1,443 3,517 — 4,960 1,407 3,238 — 4,645 
T. Hispam1,456 2,848 — 4,304 1,508 2,981 — 4,489 
Other and inter-segment eliminations697 697 669 669 
Total Group20,395 20,178 
Note: In the countries of Telefónica Hispam segment with separate fixed and mobile operating companies, intercompany revenues were not considered.
(1) 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 the convergent offers, the revenue breakdown by fixed and mobile is less relevant in this segment. For this reason, the following revenue breakdown is shown, which Management believes is more meaningful.
Millions of euros
Telefónica SpainJanuary - June 2024January - June 2023
 Retailers
4,960 4,857 
Wholesalers, mobile handsets and others
1,285 1,326 
Total 6,245 6,183 
Telefónica, S.A. 25
Condensed Consolidated Interim Financial Statements 2024
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Note 5. Intangible assets
The composition and movements in "intangible assets" in the first half of 2024 and 2023 are as follows:
January-June 2024
Millions of euros
Balance at 12/31/2023
AdditionsAmortizationTransfers and othersTranslation differences and
hyperinflation adjustments
Balance at 06/30/2024
Service concession arrangements and licenses6,886 61 (395)(116)(36)6,400 
Software3,089 192 (694)578 (108)3,057 
Customer base386 — (127)— — 259 
Trademarks235 — (16)— (11)208 
Other intangible
assets		58 9 (11)2 (1)57 
Intangible assets in process716 505 — (565)(12)644 
Total intangible assets11,370 767 (1,243)(101)(168)10,625 
January-June 2023
Millions of euros
Balance at 12/31/2022
AdditionsAmortizationTransfers and othersTranslation differences and hyperinflation adjustmentsBusiness
acquisitions
Balance at 06/30/2023
Service concession arrangements and licenses7,550 12 (405)(21)238 — 7,374 
Software2,800 191 (664)639 89 — 3,055 
Customer base721 — (179)(4)7 (3)542 
Trademarks263 — (17)1 8 — 255 
Other intangible assets39 10 (9)1 1 6 48 
Intangible assets in process644 399 — (528)13 — 528 
Total intangible assets12,017 612 (1,274)88 356 3 11,802 
"Transfers and others" in the first half of 2024 includes the reclassifications of network assets in Colombia amounted to 140 million euros to "Non-current assets and disposal groups held for sale" of the statement of financial position (see Note 27).
CapEx additions by segment are detailed in Note 4.
The gross cost, accumulated amortization and impairment losses of intangible assets in the first half of 2024 and December 31, 2023 are as follows:
Balance at June 30, 2024
Millions of eurosGross costAccumulated
amortization		Impairment
losses		Intangible
assets
Service concession arrangements and licenses15,714 (9,134)(180)6,400 
Software18,114 (15,041)(16)3,057 
Customer base4,059 (3,800)— 259 
Trademarks927 (720)1 208 
Other intangible assets841 (781)(3)57 
Intangible assets in process653 — (9)644 
Total intangible assets40,308 (29,476)(207)10,625 
Telefónica, S.A. 26
Condensed Consolidated Interim Financial Statements 2024
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Balance at December 31, 2023
Millions of eurosGross costAccumulated
amortization		Impairment
losses		Intangible
assets
Service concession arrangements and licenses16,056 (9,061)(109)6,886 
Software17,851 (14,753)(9)3,089 
Customer base4,166 (3,780)— 386 
Trademarks958 (723)— 235 
Other intangible assets867 (805)(4)58 
Intangible assets in process724 — (8)716 
Total intangible assets40,622 (29,122)(130)11,370 
Note 6. Goodwill
The movement in goodwill assigned to each Group segment was as follows:
January-June 2024
Millions of euros
Balance at 12/31/2023
AdditionsTransfersExchange rate impact
Balance at 06/30/2024
Telefónica Spain4,291———4,291
Telefónica Brazil8,076——(809)7,267
Telefónica Germany4,386———4,386
Telefónica Hispam1,108—(9)(29)1,070
Others847——13860
Total18,708 — (9)(825)17,874 
January-June 2023
Millions of euros
Balance at 12/31/2022
AdditionsTransfersExchange rate impact
Balance at 06/30/2023
Telefónica Spain4,291———4,291
Telefónica Brazil7,7525—5028,259
Telefónica Germany4,386———4,386
Telefónica Hispam1,215—(36)581,237
Others82718—15860
Total18,471 23