|
Telefonica rings in profit
|
 |
November 15, 2001: 4:49 a.m. ET
Boom in mobile phone sales boost Telefonica 9-mth earnings, currencies cap gains
|
LONDON (CNN) - Telefonica, Spain's dominant phone company, said on Thursday nine-month profit rose 7.2 percent boosted by mobile phone sales.
But earnings were capped by weaker currencies and an economic slowdown in Brazil, Argentina and Chile. Telefonica has spent more than $25 billion on expanding its business in Latin America.
It's stock has fallen about eight percent this year amid concerns Latin America could dampen earnings growth.
Telefonica's mobile phone unit, Telefonica Moviles, has about 28 million users across its operation in Europe and Latin America. Moviles net profit rose 38 percent to  670.2 million. Revenue rose 13 percent.
In the nine-months to September 30, net income rose to 1.59 billion ($1.4 billion) from 1.48 billion in the same period a year ago. That was below analysts' forecast 1.66 billion, according to a Reuters survey.
Earnings before interest, tax, depreciation and amortisation (EBITDA) -- a measure of profitability for debt laden companies -- rose 8.5 percent to 9.64 billion euros, right in line with forecasts.
EBITDA in Latin America fell 2.3 percent and contributed 3.86 billion to the group. Group sales climbed 11.2 percent to 23.08 billion euros, slightly less than forecast.
Debt at the end of September was 29.7 billion compared with 31.2 billion three months earlier.
Telefonica's stock rose 1.5 percent to 15.74 in early morning trading in Madrid. The stock hit a high of 21.32 on January 19 and plunged to a low of 9.80 on September 12. 
|
|
|
|
|
|
|
