MADRID (Reuters) - Spain’s Telefonica on Tuesday named a new head for its closely-watched domestic business in the biggest management shake-up since Jose Maria Alvarez-Pallete took the reins of the telecom group in 2016.
The unit, which brings in one third of the firm’s core earnings and was hit hard during an economic crisis, will be managed by Emilio Gayo, who was previously in charge of its marketing and commercial department.
Gayo has been one of the men behind Telefonica’s signature product in Spain, Movistar Fusion, a bundled package of super-fast internet, premium TV and mobile and fixed phone services.
Fusion has helped Telefonica turn a corner commercially in Spain, with 3.7 million clients signing up for the offering, though this has yet to translate into higher profits.
The Spanish domestic unit reported falling revenues and core profit both quarter on quarter and year on year in the third quarter of 2017.
Telefonica also announced it would split its Latin American unit in two with Argentina, Chile, Peru and Uruguay falling under an “Hispam Sur” division and Colombia, Mexico, Central America, Ecuador and Venezuela forming an “Hispam Norte” unit.
Reporting by Julien Toyer; Editing by Mark Potter