Telefonica reported a 11.8 per cent decline in Q2 revenue to €12.73 billion, pinning the blame on exchange rate fluctuations and disposals, primarily Telefonica Czech Republic.

The Spanish giant pointed to underlying organic growth in revenue of 1.3 per cent, driven by its Latin America unit and mobile data generally.

Net income in the quarter grew by 4.9 per cent to €1.21 billion.

Organic revenue from mobile data services leapt by 9.2 per cent, continuing a trend from the first quarter where it grew by 8.8 per cent. Mobile data now accounts for 40 per cent of total mobile service revenue.

Telefonica drew attention to non-SMS data revenue, which grew by 24 per cent in the quarter and now accounts for 72 per cent of total data revenues.

Likewise the operator talked up its performance in Spain, but warned that a revenue improvement is not on the cards for at least a few quarters. Second quarter revenue was €3 billion, a decline of 9.1 per cent from the same period in 2013. The revenue fell by the same amount on an organic basis.

The operator is hoping a domestic turnaround will be built on a refreshed quadplay offer launched at the end of April. Quarterly net additions to pay-TV were 350,000, fibre customers now number 861,000 and mobile contract numbers were positive for the first time since 2011.

The company talked up the performance of its Latin American (non-Brazil) businesses even though revenue fell by 14.6 per cent to €3.63 billion, but it grew by more than 11 per cent on an organic business.

Telefonica attributed the Latin American result to a strong performance in higher value segments and the growing penetration of mobile and fixed broadband in the region.

Another bright spot was the UK. Non-organic revenue grew by 4.4 per cent to €1.7 billion. Telefonica attributed its performance to customer loyalty. In particular it pointed to the take-up of its Refresh tariff package.