Telefonica Debt Cuts Don’t Fix Spanish Pain

Just before Christmas, top managers of Telefonica SA gathering in a Madrid cinema tried to remain upbeat after a year in which the company had scrapped its dividend and sold off assets. While they were quick to point out that those steps had stabilized the company’s finances, they couldn’t avoid the bad news in their biggest market, Spain.

Luis Miguel Gilperez, the head of Spanish unit, told the audience of 500 that with sales in Telefonica’s home country tumbling as customers defect to low-cost competitors, managers need to step up efforts to jump-start growth.