Spanish operator group Telefónica has seen its revenue from Latin America overtake the revenue generated in Europe for the first time in its history. In its earnings announcement for the first three quarters of the year, the group said that sales in Latin America grew 5.9 per cent and now represent 49 per cent of the company’s total turnover.

The firm also saw its overall net profit increase 26.4 per cent year on year to reach €3.5bn over the period. Revenue from mobile data increased by 14.2 per cent.

Revenue from Europe fell 6.4 per cent year on year, to €22.51bn from €24.05bn in the same period in 2011. The company’s O2 operation in the UK was hit particularly hard. In Q3, average revenue per user (ARPU) falling 10.5 per cent year on year. ARPU in its native Spain also fell 8.6 per cent.

Smartphones now represent 79 per cent share of Telefónica Europe’s total handset sales, which contributed to a 19.7 per cent year-on-year growth in non-SMS data revenues in the first nine months of the year.

“The transformation of Telefónica Europe’s business models is delivering a positive commercial performance in spite of an increasingly challenging macro-economic backdrop,” commented Eva Castillo, Chairwoman & Chief Executive of Telefónica Europe.