The Company reiterates all its full-year 2011 business targets

The Company continues to focus on the quality of its customer base, which grew by over 6% to 295 million accesses at the end of June
  • Consolidated revenues rose to 30,886 million euros in the first half of 2011 thanks to the sharp rise at Telefónica Latinoamérica (+18.4% year-on-year) and the significant increase of mobile data revenue (+18.5% year-on-year), showing a strong dynamism and remaining a key growth driver in all regions
  • Consolidated OIBDA advanced 3.7% to 11,304 million euros thanks to the high level of operating efficiency, leaving an OIBDA margin of 36.6%
  • Telefónica Latinoamérica and Telefónica Europa accounted for 71% of consolidated revenue and 64% of Group OIBDA
  • Net income totalled 3,162 million euros (-16.3%), affected by the non-cash impact resulting from Telco’s revision of the value of its stake in Telecom Italia, which reduced net income in the first half-year by 353 million euros
  • The contract segment continued to increase its weight within the overall customer base (+13%) and accounted for 32% of the Group’s 227.3 million mobile accesses. Moreover, the segmentation of tariffs by consumption patterns (tiered pricing) and the quality of the network boosted mobile broadband accesses, which totalled 29.8 million at the end of June. Retail fixed broadband and Pay TV accesses also posted respective growth of +8% and +16% to 17.6 million and 3.1 million
  • Especially noteworthy was the performance of Brazil, where the advantages of the integration of fixed and mobile operations boosted growth in the key items (revenue, +6.4% organic; OIBDA, +13.2% organic), while estimated synergies have been upgraded to a new range of between €3,700 and €4,600 million
  • The Telefónica Group invested 3,838 million euros through June, with the development of fixed and mobile broadband services accounting for the bulk of this sum. Spain experienced especially sharp growth in investment (+8.7%) in the first half. Despite the investment drive, cash flow generation (OIBDA-CapEx) stood at 7,466 million euros at the end of June

Telefónica (NYSE:TEF) (LSE:TDE) delivered a solid set of first half results, with sharp growth in consolidated revenues in the period (+6.3%) despite the challenging conditions in some of the markets where the Company operates and the significant impact of regulation. This strong growth in revenues to 30,886 million euros was underpinned by the performance of Telefónica Latinoamérica (+18.4% year-on-year) and the significant increase of mobile data revenue (+18.5% year-on-year), showing a strong dynamism which continues to drive growth in all regions.

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