Telefonica TEF had announced last year's results that were normally in line with the company's estimations, and the company won't be changing its fair value estimate.

The report showed fall of 2.1 percent year over year against their expectation of a decline of 1.7 percent.

Excluding negative currency movements, profit would have been raised by 0.2 percent.

In spite of the weak economy, the company raised its subscribers 5.1 percent to 265 million accesses.

Banco Espanol de Credito (Banesto), said that it has recorded 95 per cent fall in its net profit for fourth quarter previous fiscal.

Banesto, Spain's fourth-biggest bank by market capitalization and managed by global giant Banco Santander, posted a net profit of only EUR6.2 million in the last three months of 2009, which is nowhere near to the net profit of EUR126 million in 2008. However, analysts had estimated EUR12.5 million net profits.

Oil firm Repsol YPF SA declared that its adjusted profit dropped 61% in the third quarter due to the decreased refining margins and the decline in output.

The clean replacement cost of supplies or the adjusted net profit, excluding the inventory effects decreased to EUR279 million in the third quarter, from EUR723 million in a year earlier.

Europe’s second largest phone company, Telefonica SA, announced a drop of 0.6 percent in its profit in the third quarter due to Spanish recession in last six decades.

In a regulatory filing, Madrid based Telefonica said that net income has decreased to 1.99 billion euros ($2.98 billion) from 2 billion euros one year before, and the sales have fallen by 5.7 percent to 14.13 billion euros.

Mr. Cesar Alierta, Chief Executive Officer of Telefonica, agreed to spend 3.6 billion euros for buying companies in Brazil and Germany, in order to increase growth outside the Spain.

Spain’s largest bank, Banco Santander announced that its 3Q profits remained steady at €2.22 billion.

Despite doing a decent business in Britain, bank’s loan losses had gone up during the period.

European zone’s largest bank said that its third quarter revenue surged 11% year on year, and profits by Santander units, which were located in Britain, rose 58% to 1.16 billion pound sterling till September.

Despite having such a fantastic run, non-performing loans continued to sink bank’s bottom line.

BBVA reports a 3.3 per cent down in net profit

Spain's second-largest bank BBVA, Banco Bilbao Vizcaya Argentaria, has reported a 3.3 per cent decline in its net profit for the nine-months.

The net revenue has slipped 3.3 per cent to 4.179 billion euros, which is almost equal to the analyst’s predicted value of 4.106 billion.

However, the capital ratio of the bank witnessed an increase and it has reached 8 per cent from 7.1 per cent three months ago.

Spanish bank Banco de Sabadell SA has registered a 59% drop in its net profit for the third quarter of 2009. The company has also issued warnings that the bad run is expected to continue in 2010 also.

Mr. Jaime Guardiola, Chief Executive Banco Sabadell made a statement that 2010 would going to be a difficult year and there would be considerable stress on banking sector. He also said that the lending margins would suffer and the banking activity would be weak.

Moreover, the banks still need to check out the faulty loans.

Iberdrola, Spain's largest electricity company, has announced that it has recorded flat profits in third quarter of 2009 even though the company is recovering fast from the economic slowdown.

The company has predicted its business to improve by the end of the existing year.

The power group has posted a net profit of 552.6 million euros in the third quarter of 2009 as compared to the 522.1 million euros for the corresponding quarter a year ago.