Telefonica Espana revenues drop 6.6% in Q2

Telefonica Espana's second-quarter revenues totalled EUR 4.38 billion, down by 6.7 percent year-on-year. Second-quarter OIBDA reached EUR 1.98 billion, down 10.7 percent year-on-year, with OIBDA margin at 45.3 percent, down 2.1 percentage points in the period. Telefonica Espana managed a total of 47.4 million accesses at the end of the second quarter of 2011, up by 0.5 percent year-on-year. The number of mobile contract customers increased by 6 percent year-on-year, while the mobile broadband accesses were 1.5 times higher than in June 2010. In the wireline business, retail fixed broadband internet accesses rose by 1 percent year-on-year, while the number of pay-TV customers increased 5 percent year-on-year. Revenues in the first half of 2011 totalled EUR 8.7 billion, down 6.1 percent year-on-year. The drop was mainly due to lower ARPUs across services due to reduced customer usage and intense price pressure, the company said. In the wireline business, Telefonica registered positive performance at its IT unit (+14.6% year-on-year in the first half) and data revenues (+6.0% year-on-year). At end-March, the operator managed a total of 15.8 million wireline accesses, with a slight 1 percent year-on-year drop. Retail wireline telephony accesses, affected by the unbundling of loops, reached 12.7 million by the end of June. Retail fixed broadband internet accesses at Telefonica Espana grew 1 percent year-on-year to 5.7 million at the end of June. Pay-TV accesses reached 785,000, posting a 5 percent year-on-year increase. Fixed-line revenues reached EUR 2.67 billion in the second quarter of 2011, down 6.4 percent from the year-earlier period. The mobile customer base stood at 24.36 million accesses at the end of June, up 2.1 percent on June 2010, underpinned by the 6 percent increase in the contract base, which now represents 68 percent of total accesses. At the end of the quarter, over 23 percent of the operator's mobile accesses had mobile broadband, an increase of 7 percentage points year-on-year. Revenues totalled EUR 1.97 billion, which equals a year-on-year decline of 6.7 percent