The company reported third quarter revenues of E14.2 billion, an increase of 4.8% compared to E13.5 billion for the same period in 2006. EBITDA was E7 billion, an increase of 28% compared to E5.4 billion in 2006, while the operating profit increased by 59% to E4.7 billion compared to E3 billion in 2006. The earnings per share increased to 84.9 cents compared to 60 cents in third quarter 2006.
The company had set aside E15m for taxes in the quarter compared to E831m last year. However, the sale of Dutch television company Endemol generated a tax break of E1.37 billion.
All reportable segments of the company showed year-on-year increases in revenues. Telefonica Espana revenues increased 3.6% to E2.5 billion, while Telefonica Latinoamerica revenues increase by 11.3% to E5 billion. Telefonica O2 Europe and Atento Group recorded year-on-year increase of 2.8% and 22%, respectively to reach $3.7 billion and $305m.
Telefonica’s competitor America Movil showed similar profitability in its third quarter results in October 2007 with operating profits reported as E1.2 billion, an increase of 29.9% compared to E950m in 2006. It reported revenues of E4.9 billion, an increase of 29% compared to E3.7 billion for the same period in 2006, while the net profit was E695m, a decline of 2% compared to E709m in 2006.
Telefonica’s total mobile customer base grew 11.6% to 218 million subscribers, including 126.5 million subscribers in Latin America, 45.6 million in Spain and 40.7 million in Europe. The retail broadband accesses posted an increase of 32.1% to reach 9.6 million connections. The pay TV subscribers increased 59% year-on-year to reach 1.4 million at the end of third quarter.
Source: ComputerWire daily updates
