Spanish telecom Telefonica reported a significantly narrower first-quarter net loss, bolstering confidence in its full-year outlook. The company posted a loss of €411 million ($481.5 million), a sharp improvement from a €1.30 billion loss in the same period last year, while revenue increased.

This performance allows Telefonica to maintain its guidance for revenue growth between 1.5% and 2.5% for the year. The reduced loss reflects effective cost management and operational efficiencies implemented over the past year, despite a competitive European market.

The results signal a turnaround in profitability for the Spanish carrier. Investors will watch closely to see if the company can sustain this momentum and achieve its modest growth targets amid ongoing sector pressures and regulatory challenges.