Telefónica saw net profits rise between April and June but only its UK business reported an increase in sales.
Q2 revenues were down 11.8 percent year-on-year to €12.7 billion with the Spain-based operator pointing to foreign exchange movements in Latin America and the disposal of its Czech Republic subsidiary as contributing factors to the decline.
A growing customer base, up three percent to 24 million, and 4G LTE users consuming twice as much data as their 3G counterparts helped to push revenues in the UK up 4.4 percent.
However, sales in Lat Am tanked, with Brazil down 11 percent and the rest of the region down over 14 percent. Telefónica pointed out that this was mainly due to regulation, with organic revenues up around 12 percent.
Spain saw sales fall over nine percent to €3 billion as overall customer numbers fell three percent to 41 million, but the operator said they stabilised quarter-on-quarter.
Ahead of the acquisition of E-Plus from KPN, revenues in Germany were down 4.4 percent.
Profit margins fell across Europe but rose slightly in Lat Am, but net income rose 4.9 percent to €1.2 billion. Capex rose slightly to €1.9 billion.
Executive Chairman César Alierta, said: “First-half results started to reflect the benefits from the investments in network modernisation carried out in recent quarters, which are enabling us to further differentiate our offering in key markets.”
The operator also highlighted several growth areas; mobile data revenues grew by over nine percent, while organic M2M revenues were up more than 50 percent.
Overall customer numbers rose two percent to 315 million.