Telefonica Profits Down 0.6 Pct

MADRID (AP) — Spanish telephone company Telefonica SA said Thursday its 3rd quarter net profit dipped 0.6 percent compared to the same period of last year as the company took in less revenue in a recession-plagued economy.

Profit in the July-September period totaled €1.99 billion ($2.99 billion). That compared to €2.0 billion in the same period of 2008, the company said.

Revenues fell 5.7 percent to €14.1 billion, from €15 billion in the same quarter of 2008.

In Spain, sales fell 8.9 percent to €4.9 billion euros, while revenue in Latin America was off 2.3 per cent to €5.6 billion.

For the first nine months of the year Telefonica said its net profit increased slightly as the company pursued its strategy of capturing growth in its markets and expanding outside Spain. It said net income increased 0.3 percent to €5.6 billion.

Telefonica said a 17.7 percent rise in operating income over the 9-month period at its Latin American business helped offset more sluggish performances at its European and Spanish operations.

In early trading Telefonica SA shares were off 0.1 percent at €18.9.