Telefonica S.A (Telefonica)'s 1Q 09 results reported a poor top-line and operating performance and underperformed our expectations. The weak macroeconomic conditions negatively impacted Telefonica's revenues from Spain and Europe through a decline in usage. However, the impact was partly offset by healthy growth in accesses from the Latin American region, especially Brazil. We expect this trend to continue in Latin America, led by increased demand from Broadband…

Although revenues and OIBDA fell short of our expectations, Telefónica S.A.’s (Telefónica) 4Q 08 earnings outperformed our expectations as a result of lower-than-expected tax related expenses. We remain positive about Telefónica as we believe that it will demonstrate a strong increase in revenues from Latin America in the future, particularly as a result of its leading position in Brazil through Vivo Participacoes S.A. (Vivo), its alliance with…

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Telefónica S.A’s (Telefónica) 3Q 08 revenues were in line with our estimate while OIBDA and earnings were above our expectations. Telefónica continued to witness healthy growth from Latin American operations, driven by its Brazilian wireless business through Vivo Participacoes (Vivo). Considering the slowdown in revenue growth from Europe and Espana, we expect revenues from Latin America to drive the bulk of growth for ...