Telefónica's revenues from digital services hit €1 billion in the first three months of the year as it unveiled its latest financials.
Two-thirds of digital sales come from video, as the Spain-based operator saw its Pay TV subscriber base grow by 53 percent to 8.4 million in the last 12 months.
Reported revenues fell 6.6 percent to €10.8 billion as negative currency effects in Latin America played havoc with the figures.
On an underlying basis, however, sales rose 3.4 percent.
Reported operating income was down 11.3 percent but up 11.4 percent on an underlying basis, to €1.3 billion.
Net income hit €776 million, an increase of 26 percent when one off items from Q1 2015 are stripped out.
In Telefónica’s home market, sales rose 0.2 percent meaning it recorded positive growth for two consecutive quarters for the first time since 2008.
Revenues rose 0.6 percent in Brazil and 11.3 percent in the rest of Latin America.
However, sales fell 2.3 percent in Germany as the operator registered declines across both fixed and mobile services.
Customer numbers across all of its markets rose by 0.9 percent to 321.9 million.
Presenting his first financial update as CEO since taking over from Cesar Alierta earlier this month, José María Álvarez-Pallete said: “In a context of intense technological disruption and transformation, our first quarter results reflected a strengthening of the business across the board and of the capacity of our platforms which is enabling us to reach more customers with higher value products and services.”
Telefónica continues to wait for the outcome of the European Commission’s investigation into the proposed sale of its UK arm to Three parent CK Hutchison.
