Latin market shines for struggling Telefonica

Latin market shines for struggling Telefonica
Telefonica said in a statement that it had achieved double-digit growth in Latin America. Photo: Oscar Paradela
Spanish telecom group Telefonica reported a sharp fall in net profit for the second quarter on Thursday but did better than expected with a strong performance in Latin America.

The giant group said that net profit fell by 13.1 percent to €1.154 billion ($1.5 billion).

This was better than the overall expectations of eight analysts polled by Dow Jones Newswires who had forseen a net figure of 1.053 billion euros.

Telefonica said in a statement that it had achieved double-digit growth in Latin America and that it had benefited from an improvement of activity in Europe.

On Tuesday, it was announced that Telefonica had bought E-Plus, the German subsidiary of Dutch group KPN, for €5 billion in cash and a 17.6-percent stake in Telefonica Deutschland.

Analysts said that the deal was part of a strategy by Telefonica to develop in northern Europe to balance exposure to markets in recession-hit southern Europe.


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