A strong performance in Latin America, the UK and Germany carried Telefonica to a 9.4% rise in 1H net profit, despite continued weakness in its domestic market and other European operations.

 

The firm reported profits of €3.78 billion for the period this morning after growing group revenues 5.4% to €29 billion in the first six months of the year.

 

Its European business posted the greatest increase in revenues during the period, growing 10.8% to €7.2 billion as its operations in the UK and Germany posted rises of 6% and 8% respectively.

 

Businesses in the Czech Republic and Ireland continued to suffer from a “challenging economic environment,” but showed signs of reversing downward trends, Matthew Key, chairman and CEO of Telefonica Europe said.

 

Revenues from Latin America grew 10.2% to €12 billion, validating the firm’s dogged determination to secure control of Brazilian cellco Vivo – a deal confirmed only yesterday.

 

Telefonica chairman Cesar Alierta said Vivo would be combined with Telesp, the firm’s fixed-line business in Brazil, and expects the €7.5 billion acquisition to have an immediate positive impact on earnings and cash-flow in the region.