Spanish carrier Telefonica recorded a 7.7 per cent increase in net profits during the first quarter, bringing the total to Eur1.3bn. Revenues were up 15.1 per cent year on year to Eur13.7bn due to strong growth at home and in Latin America.

The company’s tot subscriber base reached 206.6 million by the end of March, up 11.4 per cent year on year, with the bulk of new connections provided by cellular and broadband.

Telefonica Spain contributed 44.8 million to the total number of subscribers, while the Latin American unit brought in 117 million and mobile operator O2 Europe counted 39.2 million users.

O2’s operating income rose to Eur933m from Eur756m a year ago, while revenues rose to Eur3.5bn from Eur2.4bn.

On Tuesday it emerged that O2 Germany is considering cutting up to 1,000 jobs, or 20 per cent of its staff base, due to the fiercely competitive nature of the market.

Operating income in Germany for the first quarter was Eur161m, an increase of 23.6 per cent compared to the period ended March 31. However, O2 Germany’s blended ARPU level stood at Eur5.1 a 14.2 per cent decline year on year.