Telefonica sets modest targets

MADRID: Telefonica reported better-than-expected 2011 net profit of 5.40 billion euros on Friday, almost half the amount posted the previous year as restructuring costs in crisis-hit Spain and slowing revenues in some of its mature markets bit hard.

The euro zone's largest telecom, struggling to convince sceptical investors that a December dividend cut is enough for it to meet a tough debt reduction programme, also announced modest growth targets for 2012, with revenues seen up more than just 1 percent in the period.