Spain's Telefonica said it expected revenue to rise by more than 7% this year as it reported annual results hit by a weaker Venezuelan currency, restructuring costs in Germany and asset sales in non-core markets. 

Telefonica said it would raise up to €3 billion through a rights issue in connection with the acquisition of Vivendi's Brazilian unit GVT in a deal announced last year. 

Europe's biggest telecoms group by revenue reported a 35% fall in its annual net profit to €3 billion, while operating income fell 19% to €15.52 billion, with both results slightly missing forecasts. 

Telefonica had already warned last week that the devaluation of the bolivar would knock €399m off its net profit. 

Revenue stabilised in its key home market, where it has been trying to win back cash-strapped consumers with bundled packages of mobile, fixed-line broadband and TV services after investing heavily in faster networks. 

Seeking to cut its debt and concentrate new investment on core markets in Spain, Germany and Brazil, Telefonica has already sold subsidiaries in Ireland and the Czech Republic and agreed last month to sell its UK O2 business to Hutchison Whampoa. 

Provided the deal gets approved, cash from the sale will help the Spanish group cut debt to about €35 billion according to analysts' estimates.

This would help sustain one of the highest dividend yields in the sector at 5.4%, according to Thomson Reuters data.