Tags: EU | Spain | Earns | Telefonica

Telefonica Profit Climbs 22 Percent on Customer Increase

Friday, 26 Feb 2010 02:39 PM

Spanish telecoms company Telefonica SA said Friday its fourth quarter net profit rose 22 percent as an increase in customer numbers in Latin America helped boost revenue.

The company said profit in the October-December period totaled 2.44 billion euros ($3.29 billion), compared to 1.99 billion euros in the same period of 2008.

Revenue for the quarter was up 1.2 percent, from 14.80 billion euros in the same stretch of 2008 to 14.97 billion euros.

The company said there was a rise in commercial activity across all areas of operation in the fourth quarter, with the net increase in mobile customers over 6.8 million.

Telefonica said its Latin American operations "delivered a solid operating and financial performance," posting the first positive year-on-year growth in net customer additions in 2009.

Revenue for the region rose to 6.33 billion euros in the quarter, up 8 percent from the same period in 2008. The figures were an improvement on the third quarter, which saw revenue in the region off 2.3 percent at 5.6 billion euros.

Operations in Spain continued to suffer, with revenue down 1.6 percent to 5.05 billion euros, although the company said this marked the second straight quarter in which the rate of decline slowed. In the third quarter, revenue had fallen 8.9 percent.

For the entire year Telefonica said its net profit was up 2.4 percent to 7.77 billion euros, from 7.59 billion euros in 2008. Revenue for the 12-month period was down 2.1 percent to 56.73 billion euros.

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