Telefónica reports 27pc decline in profit – writes down value of stake in Ireland by €527m

28 Feb 2013143 Views

Global telecoms giant Telefónica has reported a net profit of €3.9bn for 2012 – a 27pc decline – which it said was due to the adjustment of the value of its stakes in Ireland (O2) and in Telecom Italia.

The value of the write-offs totalled €2.5bn. Telefónica said its operating income before depreciation and amortisation (OIBA) was affected by an adjustment of €527m in relation to its Irish operations.

The Madrid-headquartered company reported revenues totalling €62.5bn, a 0.8pc decrease affected by averse conditions in certain markets, it said.

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The conditions it said were both economic and competitive and due to what it described as the ‘negative effect of regulation’.

The company’s total access base rose by 3pc year-on-year to reach 315.7m subscribers, driven by new contract customers and fixed and mobile subscriptions.

Telefónica’s Latin American divisions buoyed up the company with a 6pc increase in subscribers.

John Kennedy is an award-winning technology journalist who served as editor of Siliconrepublic.com for 17 years.

editorial@siliconrepublic.com