MADRID--Telefonica SA's (TEF.MC) London-based online division, Telefonica Digital, will contribute about EUR5 billion to annual revenue by 2015 with an annual revenue growth rate of 20%, the Spanish telecommunications company said Thursday.

Telefonica Digital also announced several initiatives, including plans to have direct-to-bill payments for apps and other services in 14 countries by the end of the year, and an agreement to develop business opportunities in financial services and other areas with Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat.

The unit, which was set up in 2011, also said it would make a "multi-million euros" investment to kick-start the mobile advertising market in Brazil.

Write to Nicholas Winning nick.winning@dowjones.com