Telefónica said that its revenues fell 0.7% year-on-year in the fourth quarter of 2012 to 9.46 billion euros on an organic basis, compared with a 1.5% decline in the third quarter. The Madrid-based group blamed the decline in revenues in 2012 on "adverse conditions in certain markets, both economic and those resulting from more intense competition, and the negative effect of regulation. "
However, it forecast revenue growth in 2013 on an organic basis and a similar capex/revenues ratio to 2012. César Alierta, the executive chairman, said the “progressive improvement quarter by quarter” was the result of a “deep transformation process at Telefónica, aimed at regaining sustainable growth of organic revenue and a continued increase in margins." source: Telefonica statements