Spanish telecommunications company Telefonica saw net profit slump 27 percent in the second-quarter as falling revenue in the domestic market offset a far stronger performance in Latin America.
Telefonica said Thursday that profit for the April-June period was euro1.54 billion ($2.22 billion), down from euro2.12 billion for the same period last year. Overall second-quarter sales were up 2.2 percent at euro15.45 billion but revenue in crisis-hit Spain dropped 6.6 percent to euro4.38 billion.
The company also said profits were adversely hit by a euro353 million writedown on a stake in Telecom Italia SpA.
A bright spot for the company was Latin America, where revenues spiked 12 percent to euro7.11 billion. Brazil did particularly well with sales up 40 percent to euro3.61 billion.
"The outstanding performance in Brazil consolidates our leadership in a market which will soon become Telefonica's main source of revenue," the company said.
Telefonica has significant presence in the fast-growing Latin American sector with important footholds in expanding markets such as Chile, Colombia, Mexico, Peru and Venezuela, as well as Brazil.
Telefonica shares in Madrid were down 1.4 percent to euro15.5 in midday trading.