Telefónica is continuing to slim down its operations in Latin America, with the latest move being the sale of its struggling Peruvian business. This decision aligns with the vision of new Executive Chairman Marc Murtra, who sees Brazil as the only key market worth holding onto in the region.
The Spanish telecoms giant has signed a deal to sell Telefónica del Perú to Argentina-based Integra Tec International for just €900,000. Despite the low price, Integra Tec will take on the company’s significant debt – around €1.24 billion – which includes tax liabilities and payments owed to bondholders.
Telefónica’s exit from Peru follows similar moves in the region. In the past year, it has sold its Colombian unit to Millicom and agreed to offload its Argentine business to Telecom Argentina for $1.245 billion. It’s also reportedly working with JP Morgan to find a buyer for its Mexican arm, Movistar Mexico, which serves around 26 million customers.
The sale in Peru comes after Telefónica launched a restructuring process due to serious challenges, including intense competition, tax issues and government decisions that have hit its business hard. Telefónica del Perú is the second-largest operator in the country with 13 million customers, but its financial performance has been declining. In 2024, it reported €1.47 billion in revenue – down 7.4% from the year before – and EBITDA of €135 million, a 56% drop year-on-year.
Integra Tec, known for turning around underperforming businesses in telecoms, media and utilities, says its priorities will be maintaining and improving services, restructuring debt through the bankruptcy process, and building a sustainable business model.
For Telefónica, this marks another step in its strategy to focus on core markets with stronger growth prospects. The company has been gradually withdrawing from its Telefónica Hispanoamérica division, which includes operations in countries like Colombia, Argentina, Mexico, Peru, Chile, Ecuador, Uruguay and Venezuela. Telefónica no longer considers this region a strategic priority.
This reshaping of the business is being driven by Murtra, who took over as executive chairman in January after a shake-up at the top. His appointment was confirmed at Telefónica’s annual shareholder meeting in April. Murtra is leading a major review of the company with a focus on strengthening its position in Europe.
Brazil – where Telefónica operates under the Vivo brand – is not part of the Hispanoamérica division. It remains a standalone business unit with strong financials, over 102 million mobile customers, and nearly 7.3 million broadband users.
Further announcements about Telefónica’s exit from other Latin American markets are likely to follow soon.
