Spanish telecoms giant Telefonica reported a better-than-expected rise in net profit during the first six months of 2010 on the back of strong results from its foreign operations, which helped offset weak but improving performance in its home market. For the six months ended 30 June 2010 Telefonica posted a net income of EUR3.78 billion (USD4.92 billion), up 9.4% year-on-year, while consolidated revenue also rose, up 5.4% against the same period a year earlier at EUR29.05 billion. The group’s Latin American and Europe divisions both posted solid revenue growth of 10.2% and 10.8% in the period, more than helping to offset the 4.5% drop in turnover at its fixed and mobile Spanish units; Telefonica did, however, note that revenues in Spain were recovering gradually, thanks to increased commercial activity and improved traffic volumes. Operating income before depreciation and amortisation (OIBDA) meanwhile stood at EUR10.9 billion in 1H2010, virtually unchanged from the same period in 2009. Telefonica noted that its efforts to diversify its operations have started to bear fruit, stating that 67% of revenues and 60% of its OIBDA are now generated outside of Spain.
In operational terms Telefonica reported a total of 278 million accesses at end-June 2010, up 5.2% year-on-year, with mobile voice connections continuing to grow with organic net adds, which were 8.9 million customers, 1.8 times higher than in the first half of 2009. In addition it said that it had also seen a significant improvement in the quality of the new customers, with 56% of organic total net adds taking post-paid services compared to 46% in 1H09. The group’s broadband subscriber base meanwhile reached 38 million, with significant growth rates in both retail fixed broadband, up 9.2% y-o-y on an organic basis, and in mobile broadband accesses, up 84.6%.