UPDATE 2-Telefonica sees turnaround after showing resilience in 2013
* Revenues drop in line with estimates, net profit up
* Weak Latin American currencies, Europe sales weighed
* Growth in Brazil, data, Spain quad-play encouraging
* Sticks to debt reduction, dividend but eyes higher capex
By Julien Toyer
MADRID, Feb 27 (Reuters) - Spain's Telefonica said on Thursday it was seeing signs of a rebound as it posted 2013 results, but analysts warned it remained vulnerable to Latin American jitters and still tough European markets.
Europe's biggest telecom operator by revenue, emerging from a two-year plan which saw it sell assets and cut its dividend to pare high debt and regain financial muscle, returned to organic operating income growth last year, with activity gathering pace in the final quarter.
A solid performance in all Latin American markets, which now account for 51 percent of the group's sales, and sustained growth in mobile data consumption were the main elements of the improvement.
But weaker currencies in Brazil, Argentina and Venezuela dented revenues and operating income, while margins in Europe also came under pressure. Continuación...