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Telefonica cuts executive pay as profits fall

Telefonica has reported net profit of 1,327 million Euro (£1,041 million) for the second quarter of its financial year. That’s an increase from the previous quarter but over 13% down on the same quarter in 2011.

The company has temporarily suspended its dividend payment for 2012 and has cut its directors’ pay by 20%.

In the UK, Telefónica’s half-year revenues reached 3,437 million Euros; down 5.7% year-on-year. The total Telefonica UK (O2) mobile customer base reached 22.4 million at the end of June 2012, a 1% year-on-year increase. 51% of these customers now have ‘pay monthly’ contracts.

[Report (pdf)]

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