Telefonica SA has announced plans to invest $20 million (EUR 13.35 million) in 3.5G technology in El Salvador during 2010. In doing so, the company aims to improve its competitive edge against other firms including Digicel, Tigo and Claro. Telefonica will be investing between EUR 14 million ($20.98 million) and €16 million in the country between 2007 and 2010. This includes $2 million to be invested in renovating its 33 stores across the country.

Telefonica SA announced earnings results for the nine months ended September 30, 2009. For the period, the company reported as a result, despite the current economic context, the high diversification in its operations, both in terms of businesses and geographies, enabled the Group to achieve revenues of €41,721 million. Revenues fell by 3.3% compared to the first nine months of 2008. However, this was mainly as a result of the negative impact from foreign exchange rates, which reduced growth by 3.6% points. Changes in the consolidation perimeter added a further 0.2% points to revenue growth. Increasing efficiency and exploiting economies of scale was reflected in 1.8% growth in operating income before depreciation and amortisation in organic terms1 to €16,647 million. OIBDA fell by 2.2% year-on-year, although excluding the impact derived from asset sales in 2008 (Airwave and Sogecable), OIBDA dropped slightly (-0.7%) compared to the same period in the previous year. Operating income was €10,024 million, with 2.1% year-on-year growth in organic terms2 (-2.0% in reported terms). Net financial results to September 2009 amounted to €2.058 million, down 2.0% from the same period of 2008. Free cash flow was amounted to €6,733 million. Consolidated net income was €5,610 million, up 6.4% on the same period of 2008, stripping out the impact of capital gains from asset disposals (Airwave and Sogecable) booked in the first nine months of 2008. Basic earnings per share rose by 9.0% year-on-year to €1.23, excluding the impact of the asset sales in 2008. In reported terms, the year-on-year increase was 2.7%. CapEx was amounted to €4,376 million, with operating cash flow (OIBDA-CapEx) of €12,270 million, up 10.1% year-on-year. Net debt increased by €2,067 million because of the foreign exchange impact, changes in the consolidation perimeter and other effects on financial accounts. The company announced its commitment to propose a dividend payment of €1.15 per share from 2009 earnings; the first payment of €0.50 has already been distributed.

Telefonica SA reported earnings results for the third quarter ended September 30, 2009. Net profit for the quarter was EUR 1.99 billion compared with EUR 2 billion a year ago. Operating income before depreciation and amortization fell 3% to EUR 5.71 billion while total revenue fell 6% to EUR 14.13 billion. Net profit slipped 1% in the third quarter as weaker revenue hit its mature European markets, especially in Spain. Capital expenditure in the first nine months of the year declined 19% to EUR 4.38.