Spanish telecoms group Telefonica (NYSE: TEF) reported a first quarter 22 percent rise in profits, boosted by its Latin American mobile phone units. Net income rose to 1.54 billion euros from 1.26 billion euros a year ago. Latin American sales climbed 10 percent to 5.16 billion euros, while revenues in Spain were up 1.9 percent to 5.1 billion euros. Telefonica Europe, which includes operations in the UK, Ireland, Germany and the Czech Republic, meanwhile, fell 1.7 percent to 3.47 billion euros. The company met analyst expectations, which put the company’s revenues at 1.56 billion. In Europe, Telefonica saw non-SMS data (mobile web and the operator’s portal services) use climb, with net additions in O2 UK being driven in part by the iPhone.

Additional Highlights:

— O2 UK added 21,152 mobile customers in the quarter, bringing its total subscriber base to 18.4 million, a growth of 3.7 percent year-on-year. A total of 206,385 net contract customers were added in the quarter, boosted in part by the iPhone. O2 UK’s total ARPU was 31.1 euros, 5.5 percent higher than the first quarter last year if counted in pound sterling.

— O2 UK data ARPU came in at 10.7 euros, 9.6 percent higher counted in pounds than the first quarter last year, boosted by test messaging, as well as a surge in mobile web use and O2 Active services. Revenues for mobile web and O2 Active use were up 55.7 percent year-on-year, counted in pounds.

— O2 Germany added 535,994 customers, taking the mobile customer base to 13.0 million, an increase of 16.3 percent from last year. ARPU in the quarter was down 17.7 euros, 13.4 percent lower than the same quarter last year, which the operator blamed on a changing customer base, and the introduction of new tariffs and promotions, market competition and the termination rate cut of approximately 10 percent in 2007. (Deutsche Telecom called it “fierce price wars” in their Q1 earnings.)

—O2 Germany data revenues were also down. Data ARPU was 4.9 euros, 2.8 percent lower than the first quarter last year. The network attributed this to lower spending prepay users. The also said flat rate voice promotions had caused a shift from SMS to voice usage. Non-SMS revenues, however, rose 27.3 percent year-on-year.

Earnings Presentation via PDF