Telefónica Digital targets growth in M2M and Latin America

06 July 2012 | Kavit Majithia


Telefónica forecasts its digital business, which launched in September 2011, will generate approximately €5 billion in sales by 2015.

The company confirmed it is aiming to increase its sales by 20% year-on-year, from €2.4 billion in 2011. It formed the unit by combining its digital assets, including social networking site Tuenti and web phone platform Jajah.

The Spanish-based company, which has suffered from declining domestic revenue in recent months, created Telefónica Digital with the view of tapping into enterprise services, M2M communications and the financial vertical. It said it aims to increase sales in M2M by a further €500 million to reach €800 million, also by 2015.

Latin America specifically has been highlighted by Telefónica as a major growth market for digital services, and the company confirmed plans to launch projects like mobile health and security monitoring in the region, given its success in Europe. Executives also highlighted the rapid increase in smartphone penetration in the region as a further opportunity.

As part of its growth plans, the company confirmed it has signed global framework agreements for direct billing payments with Facebook, Google and RIM. It has already started rolling out the service in Europe, and will extend it to 14 of its operating units by the year end.

Telefónica Digital executives were speaking to reporters at the company’s first analyst investor day in London on Thursday.