Iñaki Ferreras ©RapidTVNews | 02-08-2011

Spain's main telco Telefónica is going through a difficult period both in Spain and in Italy, where the group's stake in Italy's Telecom Italia fell in the first half of this year.

However, Latin America is the salvation for the group where it experienced an important growth of 6.3%, equating to €30,886 million, between January and June 2011. This positive outcome has been the result of the company's growth in Latin America of 18.4% per year and also its growth in the mobile sector of 18.5% per year.

Telefónica Latin América and Telefónica Europe comprised 71% of the group’s consolidated incomes and also 64% of the company's OIBDA. This figure grew 3.7%, equating to €11,304 million in the first half of the year

However, the company suffered a downturn of €3,162 million (a drop of 16.3%) in its net profits, partly because of the downturn of Telco (in which Telefónica has an important stake) due to its stake in Telecom Italia. This reduced the company's profit down to €353 million.

Especially noteworthy, was the performance of Telefónica's business in Brazil. Telefónica's president César Alierta described this performance as "brilliant". Brazil is forecast to become the company's main market, with an estimated value of between €3,700 to €4,600 million.

As for the company’s investments, these amounted to €3,838 million, mainly in the development of broadband services both traditional and mobile.
Telefónica developing its television services through the DSL networks. Its Movistar Imagenio platform in Spain has over 700,000 subscribers and the company has launched in Latin America where it hopes it will become one of the most important DSL-TV operators.