Spain's Telefonica posts lower profits
Spanish telecoms giant Telefonica Thursday reported net profits tumbled 16.2 percent in the first half to 3.162 billion euros ($4.45 billion).
In the second quarter alone, profits were down 27.4 percent from the same period last year, at 1.538 billion euros.
The group in particular blamed the downward revaluation of its stake in Telecom Italia which reduced profits by 353 million euros over the six months.
Operating income before depreciation and amortization (OIBDA) was up 3.7 percent at 11.304 billion euros, mainly on growth in Latin America and Europe.
In Spain, OIBDA was down 10.6 percent at 3.911 billion euros while Latin America it was up 16.6 percent at 5.190 billion euros and in Europe it rose 1.2 percent to 2.097 billion euros.
Telefonica has announced a plan to shed 6,500 employees over the next three years at a pre-tax cost of 2.7 billion euros.
The employees represent about 20 percent of the workforce of Telefonica in Spain, where the group has about 30,000 staff out of a total global workforce of 269,000 people.
The group posted a record net profit of 10.2 billion euros in 2010, up nearly 31 percent as weakness in Spain was offset by strong growth in the rest of Europe and Latin America.
Telefonica, the second biggest telecommunications operator in Europe behind Britain's Vodafone, is established in 25 markets in Europe and Latin America.
© 2011 AFP