Telefonica loses profits despite aid from iPhone
updated 10:10 am EDT, Thu July 31, 2008
iPhone up, Telefonica down
Spanish carrier Telefonica has reported a decline in its second-quarter profits despite the help of the iPhone, according to published results. Profits dropped 20 percent in Q2 over the same period a year ago, with net income sliding to $3.21 billion from $4.01 billion. This still beats the predictions of a Bloomberg survey however, which had suggested profits of only $2.84 billion.
Sales in fact climbed, from $21.98 billion to $22.24 billion, and the original 2.5G iPhone may have played a significant role. Telefonica's O2 division in the UK -- which has sold various models of the iPhone since November 9th -- reports having added 137,596 monthly subscribers between January and June, an 80.8 percent increase over the same timeframe in 2007. O2 attributes much of this to the iPhone, though figures are said to have been good overall.
Both Telefonica Spain and O2 UK began selling the iPhone 3G on July 11th, and have not so far released detailed sales figures.
