Sales declined 8.9% to €14.43B vs expectations of €14.3B, with the fall partly due to revenue lost from asset sales and currency fluctuations in Latin America.
Operating profit before depreciation and amortization fell 8.7% to €4.98B but exceeded forecasts of €4.91B.
Latin American sales +9.6%, Europe -8.6%, again hurt by a price war in Spain.
Debt fell to €45.4B from €46.1B at the end of Q3 and came in below Telefonica's year-end target of €47B.
Telefonica left its dividend at €0.75 a share, which it will pay in shares and cash. (PR)
Telefonica's earnings come after it yesterday unveiled a €1.5B cost-savings program.