Telefonica sees profits fall as Spanish market remains weak

Spanish O2 operator, Telfonica, has posted a nine per cent fall in net profit over the nine months to 30 September. The Spanish telecoms giant struggled against poor domestic market conditions and weakening Latin American currencies.

Revenue declined by €3.14bn (£2.62bn) and operating income before depreciation and amortization fell by 10.7 per cent to €14.1bn (£11.7bn).

The company believes the market in Europe improved in the third quarter and asserted that its plan to cut debt, which is one of the highest among large European companies, by selling non-core assets in Europe and Latin America would soon bear fruit. Debt at the end of September stood at €46.1bn (£38.4bn), achieving the target of debt below €47bn three months ahead of schedule.

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