Telefonica posts 40% jump in earnings

Telefonica reported a quarterly profit jump of 40%, helped by the contribution of recent acquisitions O2 and Cesky Telecom, according to a Dow Jones report.

The report said net income for the first quarter rose to 1.27 billion euros from 912 million euros a year earlier. Sales soared 45.4% to 12 billion euros.

Analysts were expecting net income in the range of 1 billion euros to 1.26 billion euros, according to AFX News.

Last year, Telefonica went on a massive shopping spree, spending a whopping $37.6 billion on UK phone company O2 and Czech operator Cesky Telekom, as it sought to expand abroad and offset withering fixed-line revenue at home, the Dow Jones report said.

Telefonica's mobile operations, Telefonica Moviles, was the main contributor to revenue growth in the quarter. Sales at the unit rose 17.7% to 4.33 billion euros as it gained 4.1 million customers, bringing its subscriber base up to 98.5 million, the report said.