UPDATE 3-Telefonica Spanish sales rise fails to impress investors
* Spain commercial boost comes at expense of margins
* Purchases in Germany and Brazil help group's sales
* Net profit falls short of expectations (Adds CFO comments on O2, infrastructure portfolio, updates shares)
By Julien Toyer and Andrés González
MADRID, Nov 6 (Reuters) - Spain's Telefonica achieved its first rise in quarterly domestic sales since 2008 but its results failed to convince investors who had expected an even better commercial performance and higher margins.
The telecoms firm, led by Cesar Alierta for the past 15 years, has been going through a transformation since an economic crisis forced it to focus on fewer but bigger markets such as Germany and Brazil.
Returning to positive sales territory in Spain, albeit modestly at 0.2 percent, was a big landmark that had been anticipated and flagged for several months.
However, it was helped by Telefonica applying steep discounts to its premium TV packages to win clients. Telefonica added 275,000 contracts in the three months between July and September compared to 90,000 between April and June but margins dropped 1.4 percentage point as a result.
Shares in Telefonica were down 2.1 percent at 12.1 euros at 1500 GMT, underperforming the European telecoms sector and partly erasing gains of 10 percent over the last month. Continuación...