Telefónica Brazil Passes Telefónica’s Market Cap for First Time

Telefónica Brazil SA’s value surpassed its parent Telefónica SA’s market capitalization for the first time ever, in the latest sign of the Spanish carrier’s struggles to win over investors.

Shares of Telefónica, Spain’s largest telecom operator, have declined 13% in the last 12 months, while the Brazilian unit’s shares have gained 40%. This gave Telefónica a market cap of €18.8 billion ($22 billion) as of Jan. 22, compared with €19 billion for its São Paulo-listed subsidiary.