Despite facing multiple challenges in both its Latin America and Europe operations, Telefonica is inking constant success and has reported an increase for the first quarter of 2013.
Telefonicaâ€™s executive chairman Cesar Alierta, in a statement, said that the company is generating outcome that reflects â€śa progressive stabilization of the business and a greater degree of diversificationâ€ť, adding its financial position is persistently improving.
During the first quarter of this year, Spainâ€™s biggest company announced the net income of â‚¬902 million which was 20.6% up from â‚¬748 million it generated last year.
The revenue fell 8.8% to â‚¬14.14 billion, with the sales in its key Latin American market, which accounts for more than half of the group’s revenues, dropping 4%. The revenue from the European market was down by 11%.
Brazil emerged as companyâ€™s biggest market for the first time, surpassing its home market Spain, where the sales declined 9.5% to â‚¬3.26 billion. Latin America delivered more than 50% of consolidated revenue to the company for second successive quarter, largely due to companyâ€™s downfall in Europe.
The company reported an operating income of â‚¬1.08 billion from Latin America, where it has 176.98 million mobile subscribers, and this number is increasing 3.6% annually.
The â‚¬1.08 billion operating income was 17.7% less than from â‚¬1.31 billion and the revenue of â‚¬7.23 billion was down 3.8% from â‚¬7.52 billion. The company described the impact of exclusion of Atento, the call-center unit sold last year, and Februaryâ€™s depreciation of the bolivar in Venezuela as main reasons behind recession.
From Europe, where it has 70.33 million mobile subscribers, the company reported an operating income of â‚¬1.13 billion, down 10.2% from â‚¬1.26 billion. The revenue of â‚¬7.56 billion slumped to â‚¬6.68 billion after witnessing decline of 11.7%.
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