The news further indicates a sizeable shift in power and telecoms growth from Europe, and into Latin America. Telefónica’s fortunes are similar to other Spanish companies, including Banco Santander and BBVA, which have used operations in Latin America to offset poor performance in recession hit Europe.
Despite the growth in the region, Telefónica revealed an overall drop in its performance, and cancels out its growth in the high growth economy. Sales in Latin America are now the largest contributor to the group’s overall performance.
Revenues overall fell by 9% to €14.14 billion in Q1 2013, compared to the same time last year.
Its revenue in its Spanish domestic market fell to €3.26 billion this year, compared to €3.9 billion last year, with further revenue declines in key European markets including the UK, Germany Ireland the Czech Republic.
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