TELEFONICA WINS BY 1,9% LOWER, WEIGTHED DOWN BY THE SPANISH MARKET

The deterioration of the domestic market is taking its toll on Telefonica, which saw its net profit decreased by 1,9% in the first quarter of 2011, to 1,624 million euros. The Spanish subsidiary of Telefonica dogged another quarter results saw their incomes fall by 5,6% and decreased its EBITDA (gross operating result) of 10,6%.

However, group turnover increased by 10,7% to 15.435 million, up 1,4% in comparable terms, discounting the effect of the purchase of all of Brazil's Vivo and the evolution of currencies.

In this sense, good performance in Latin America, whose recenues grew 26% (5,7% in comparable terms) and to a lesser extent, in Europe, which grew revenue by 8,4% (2,4% comparable) compensated for the decline in Spain. As a result, the Group EBITDA increased by 9% to 5.574 million euros, but fell 1% to comparable effect.

Mary