TelefÃ³nica's total revenue was â‚¬14 billion for the first quarter of 2008, up 1.1%. Operating income before depreciation and amortisation was â‚¬5.4 billion, up 5.3% on last year, while net income was â‚¬1.5 billion, up 22.4%.
The growth was largely driven by the operator's fixed and mobile units in Latin America, however the results also indicate that TelefÃ³nica has not been hit by the economic slowdown in Spain.
Also, O2 Germany, which took a pounding in 2006 when Vodafone and T-Mobile embarked on a price war appears to have stabilised, generating â‚¬855 million in the first quarter of this year, up 1.5% on the same period last year and the first phase of revenue growth for a year.
However, the weakness of the British pound and the selling off of Airwave, the emergency services' TETRA network, meant that overall European revenue outside Spain fell by 1.7% in the first quarter.
TelefÃ³nica also said it is pushing ahead with its share buy-back programme and now expects to have acquired 100m shares by the middle of 2009.
There are also high hopes for the iPhone factor: TelefÃ³nica said it will shortly make a joint statement with Apple concerning arrangements for the imminent 3G model.