Vodafone Spain plans to cut up to 1,200 jobs as part of the strategy to reduce cost of operations.

The telecom service provider said in November it planned to reduce its costs in Spain and Italy to respond to challenging business conditions.

Vodafone Spain’s services revenue fell 5.2 percent to €2.205 billion in the first half of fiscal 2018-19 from €2.326 billion in the first half of 2017-18. Vodafone Spain’s services revenue includes €1.451 billion from mobile services and €754 million from fixed service business.

Vodafone Spain reported Adjusted EBITDA of 542 million and Adjusted EBIT of –88 million in the first half of fiscal 2018-19.

Vodafone’s Europe consumer service revenues declined 0.6 percent in H1, with fixed growth of 3.6 percent offset by a mobile decline of 2.1 percent.

Vodafone Spain said the drop in quarterly trends reflects the commercial actions it took in May to improve the competitiveness of offers, particularly in the value segment, and the impact of its decision not to renew unprofitable football content rights.

“Competition in the market remained high during the first half of the year, resulting in a 20-25 percent increase in market portability volumes across both mobile and fixed and a significant increase in its churn rates,” Vodafone Spain said earlier.

Vodafone Spain’s mobile customer base grew by 35,000, broadband customer base declined by 118,000, and TV customer base fell by 98,000.

Vodafone Spain’s 4G coverage reached 96 percent and an NGN footprint covered 21.5 million households.

Vodafone Group posted revenue of €21.8 billion and loss of €7.8 billion, primarily due to a loss on the disposal of Vodafone India and impairments. Organic service revenue rose 0.8 percent in H1 and 0.5 percent in Q2 with good commercial and financial performance in most markets offset by increased competition in Italy and Spain.

Vodafone Group recorded operating loss of €2.1 billion, down €4.1 billion, largely driven by impairments of €3.5 billion in Spain, Romania and Vodafone Idea.