Telefonica has reported that its profits for 2011 halved after write-downs and the loss of one-off gains a year ago.

The company recorded a net profit of EUR 5.4 billion (US$7.2 billion) for the full year. The company has recorded a provision of EUR 1.87 billion in 2011 to cover redundancy costs in Spain.

Stripping out all one-off impacts for both years, growth in net profit in 2011 would have still been down by -16.6% year-on-year.

Telefonica also reported an increase in revenues of 3.5% year-on-year, to EUR 62.84 billion (US$83.5 billion) in 2011. This growth was driven by the increase in wireless data revenues, which accounted for more than 31% of mobile service revenues, and growth in Latin America, a region which already represents 47% of total consolidated revenues and 48% of the Telefónica Group's OIBDA.

Almost a third of the Group's 238.7 million mobile customers were contract customers, up 11% year-on-year, accounting for 40% of the year's mobile net additions.

The group's total customer base including landline and other services stood at 306.6 million at the end of 2011.

Net financial debt stood at EUR 56.3 billion in 2011 (+711 million euros versus 2010).