MADRID, July 31, 2008 (AFP) - Spanish Telecommunication firm Telefonica said Thursday its second quarter net profit dropped 20.2 percent to 2.05 billion euros (3.2 billion) from the same period last year when its results were boosted by a large one-time gain.

Sales for the period rose 1.2 percent to 14.25 billion euros while operational income before depreciation and amortization fell 6.8 percent to 5.74 billion euros, Spain's largest telecoms firm said in a statement.

Telefonica appeared to withstand the downturn in its domestic market, one of the most severe economic slowdowns in Europe, as sales for the period in Spain inched up 0.8 percent to 5.2 billion euros.

Last week British cellphone operator Vodafone, Europe's largest mobile operator, warned that its results would suffer in 2008 due to the sharp slowdown in Spain, the eurozone's fourth-largest economy.

Telefonica's second quarter net profits in 2007 included a capital gain of 1.3 billion euros from the sale of radio operator Airwave in Britain.

The results mean Telefonica has rung up a first half net profit of 3.59 billion euros, a 6.2 percent drop over the same time last year.

Sales during the first six months of the year total 28.15 billion euros, a 1.2 percent increase.