Strong customer growth and strong figures in the UK and Brazil weren’t enough to stop Telefónica report falling sales and profits in the third quarter.

Revenues at the Spain-based operator were down 7.4 percent year-on-year to €13 billion, but Telefónica said organic growth was 2.8 percent and pointed strong customer uptake.

For example, the number of Pay TV customers went up 35.1 percent to €4.6 million after Telefónica added 458,000 subscribers during the period.

The operator said it also achieved a record net quarterly gain in smartphones (8.5 million) and in fibre access (265,000).

Nevertheless, sales fell 6.6 percent to €3 billion in Spain as mobile revenues decreased 11.4 percent and fixed line sales were down 2.5 percent.

Revenues fell 0.5 percent to €1.2 billion in Germany as fixed revenues declined by nine percent to just €283 million.

[Read more: Telefónica Germany to axe 1,600 jobs following E-Plus merger]

Sales in Latin America were down nine percent to €3.8 billion, but there was better news in two other key markets.

In Brazil, revenues grew 1.8 percent to €2.9 billion, while in the UK revenues increased 5.1 percent to €1.8 billion thanks to handset and data revenues growing 10.3 percent and 2.4 percent respectively.

Meanwhile, Telefónica’s Digital Services unit, which includes M2M, cloud and security products, now accounts for €461 million for the operator.

[Read more: Internal reorganisation sees Telefónica refocus key big data project on transport]

Net income fell 13 percent to €947 million as capex grew 24.6 percent to €5.7 billion.

César Alierta, Executive Chairman of Telefónica, said: "The close of the consolidation activity in Germany and the acquisition of GVT in Brazil bring structural changes in the positioning of the company in two of its principle markets and reinforces the capacity for future growth”.

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