Latin American markets drive Telefonica’s strong Q1 showing
14 May 2009
Spanish telecommunications major Telefonica said that its first quarter net profit, unveild yesterday, surged 10 per cent on strong showing in Latin American markets that more than made up for weaknesses in Europe and Spain.
Profits touched euro €1.69 billion, up from €.54 billion for the same period in 2008, according to the company.
Telefonica said it was the strong performance of the Latin American markets that continue to drive the group's growth.
Revenue slipped by 1.4 per cent from €13.90 to €13.70 on shifting currency exchange rates.
Revenue fell 1.4 percent to billion from billion in the first quarter of 2008, mainly as a result of shifting currency exchange rates.
According to analysts the group level results appeared to be good and demonstrate the company's success in its effort to defend its cash flow despite weak revenues especially in Spain and mobile telephony.
Revenue in Latin America was up 4.8 per cent to €5.4 billion.
Revenue in Spain, dropped by 4.2 per cent to €4.91 billion, due to a slowdown in the market.
Average revenue per user in Spain was fell 9.5 per cent from the same period last year.
The company said its customer base increased by 12 per cent to 261 million worldwide, with clients in Latin America increasing by 16 per cent to 159 million.
The company's shares rose 1.15 per cent to €15.00 in Madrid mid-day trading.
Telefónica, S.A., is a Spanish telecommunication company operating globally. It is one of the largest telecommunications companies in the world operating in both the fixed-line and mobile segments. It is the third largest in terms of number clients only next to China Mobile and Vodafone and among the top five in terms of make value.
The company was established 1924 and until the liberalisation of the telecom market in 1997 was the only telephone operator in Spain. Besides Spain, the company operates in Czech republic, Slovakia, UK, Germany, Isle of Man, Italy, Chile, Argentina and other countries in Latin America and in China and Morocco.