Spanish mobile operators generated service revenues of EUR 3.8 billion in the second quarter, down 5.5 percent from a year earlier, but up 1.1 percent from the first quarter of 2011, according to a report from Telecompaper. Annual growth in non-voice (SMS and data) services was not enough to compensate for the fall in voice revenues, which were hurt by regulatory effects and intense competition. The overall drop in revenue was also impacted by the general economic weakness and high unemployment rate in Spain. Movistar and Vodafone showed lower revenues on an annual basis, and only Movistar was able to show a small growth quarterly. Orange and Yoigo were able to increase their mobile revenues across both periods and as such increase their market shares. Seasonally the second quarter is usually better than the first. The number of lines on the Spanish mobile market grew 5.2 percent year-on-year to 56.6 million at the end of June, with all operators adding lines annually and quarterly. Market penetration grew to 123 percent from 117. In terms of subscriber market shares, Orange and Yoigo gained market share from incumbent players Movistar and Vodafone. Telecompaper expects the Spanish mobile market to show a 5 percent contraction this year to around EUR 15.3 billion in annual revenues.
