Telefonica was bolstered by a strong performance in Brazil and its other Latin America units, as it managed to stave off the effects of a difficult macroeconomic environment in a Q3 which chairman and CEO Jose Maria Alvarez-Pallete hailed as a credit to its strategic execution.

Alvarez-Pallete used Telefonica’s earnings statement to highlight the strength of its business, with its confidence refelected in a confirmation of its financial targets for the full year.

The executive noted Telefonica made strategic progress “despite the complex environment of global uncertainty, and the deep energy and inflation crisis”.

“Telefonica continues to execute its strategic plan and the strength of the balance sheet allows the company to face the demands of this new digital era while maintaining its firm commitment to create a better, more connected and more equal world.”

Overall revenue increased 11.2 per cent year on year to €10.3 billion during Q3, attributed to strengthening its position in its main markets.

The figure in Brazil was 29 per cent higher, while its overall Latin American division rose 18 per cent.

Domestic revenue was flat, with Germany up 6 per cent.

Other stand-outs included Telefonica’s technology division, which grew revenue 69 per cent to €386 million. The operator stated this reflected an increase in scale following acquisitions and successful growth opportunities which remained on track.

Despite the revenue gains, net income fell 35 per cent to €460 million.

Alvarez-Pallete said the results allowed it to confirm its guidance and dividend commitment for 2022.

Telefonica noted its access base stood at 383.5 million, an increase of 5 per cent, with 5G covering more than 800 towns and cities in the UK, 35 in Brazil, 75 per cent of the population in Germany and 83 per cent in Spain.