Commenting on its figures (below), Telefonica de Espana SA says operating results grew strongly as a result of strong business growth accompanied by only a moderate increase in in-house work and by substantial investments in Latin America. The Spanish phone company, now fully privatized, saw its operating costs grow 20.5%, affected by a 55.8% rise in supplier and external services costs, which it attributed to advertising and distribution spending aimed at increasing penetration and utilization of existing services. Total financial expenses fell 7.7% year on year, while charges on debt fell 9.3% due to more self-financing at the parent and lower interest rates. Its cellular customers grew 153% in 1996 and stood at 2.35m at the end of 1996, for 80% market share, up from 928,995 at December 1995. Business at the international division rose 19% and accounted for 15% of the group’s total.
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