Telefonica (NYSE: TEF) reported third quarter profit declined 50 percent to 2 billion euros ($2.5 billion) from 4.02 billion euros ($5 billion) , after its sale of Endemol last year increased earnings. Sales were up a modest 5.7 percent to 14.99 billion euros ($19 billion)  from 14.19 billion euros ($18 billion), driven by strong growth in its Latin American unit. Still, the figure beat analyst forecasts of 14.88 billion euros ($18.9 billion), according to a Bloomberg survey.

Europe’s second largest telco saw revenue in its home market of Spain climb 2 percent to 5.38 billion euros ($6.9 billion), despite the downturn in the economy. Latin American sales did especially well, rising 15 percent to 5.78 billion euros ($7.4 billion). Sales in its other European operations fell slightly, dipping 0.6 percent to 3.69 billion euros ($4.7 billion).

Earnings Highlights:

—Total wireless customer base: Total wireless customers stands at 189 million as of the end of September. The telco added 6.2 net additions during Q3, with year-on-year organic growth of 17.4 percent.

—O2 UK: Telefonica O2 UK recorded its “best ever third quarter” with 278,000 contract net adds, a 74.4 percent increase year on year, boosted in part by the iPhone and its new Simplicity tariff. Total mobile now stands at 19.1 million (excluding Tesco Mobile customers) a 6.6 percent growth year on year. Churn fell to 1.3 percent. Data ARPU was 8.9 percent higher year-on-year in pounds, boosted by “a significant increase in usage of the mobile internet.” Non-SMS data revenues grew 61.1 percent year-on-year in local currency in the third quarter. Telefonica O2 UK’s DSL broadband service registered 72,870 net additions in the quarter, a 16 percent increase from the previous quarter, giving it a total broadband base of 267,090 at the end of September.

Earnings Report | Selected Financial Data