First half results from Spanish PTO Telefónica show that its long-troubled Latin American operations may be on the road to recovery and that its wireless businesses are improving. For the six month period ending 30 June 2003 Telefónica reported a profit of EUR1.43 billion compared to a loss of EUR5.57 billion for the same period of 2002; the 2002 result, however, was impacted by the company’s decision to write down the value of its 3G investments in Europe. Sales for the period fell by 7% to EUR13.56 billion, partially as a result of Latin American revenues falling by around a quarter. However, the telco maintains there are signs of improvement from the region, as the effects of unstable currencies ease. Results were lifted by a strong performance at the group’s wireless arm, Telefónica Móviles, which reported a first half profit of EUR779 million. No growth was reported by the group’s fixed line operations either in tis domestic or overseas operations.