Telefonica results success tempered by debt concerns

NEWS Spanish telco Telefonica has reported first half profits of E1.15bn (£710m) - 16 per cent up on the same period last year. However, the telco is still facing the prospect of having its credit rating cut from the current A+, with debts amounting to E31.2bn (£19.4bn). Terra Lycos, the telco's ISP and portal business announced losses of E390m (£242m) for the first half of 2001 - up on losses of E165.6m (£102.9m) for the first half of last year. Telefonica shares closed 4.5 per cent down last night at E12.25 (£7.61).