Telefonica net profit slumps as European units feel the effect of financial crisis

With a number of its European subsidiaries reporting a drop in turnover in 2011, in part as a result of the ongoing financial crisis in the eurozone, Spanish telecoms giant Telefonica has revealed that net profit in 2011 almost halved. For the twelve months ended 31 December 2011 Telefonica posted a consolidated net income of EUR5.40 billion (USD7.02 billion), down from the EUR10.18 billion recorded in the company’s previous fiscal year. It did, however, note that its bottom line had been affected by factors both in 2010 and 2011, highlighting firstly the positive net impact it saw in FY2010 from the revaluation of the previously held stake in Brazilian operator Vivo at the date of acquisition of the 50% in Brasilcel owned by Portugal Telecom.

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OVETEL Telefonica net profit slumps as European units feel the effect of financial crisis