Telefónica CTC, Chile’s largest cellco, posted an 18.8% rise in net profit for the first half of 2004, having maximised revenues that remained relatively flat. Total turnover for the six months to the end of June was CLP405 billion (USD668 million), up just 0.9% year-on-year, with an 18% rise in interconnection fees helping to counteract a 12.2% reduction in direct local telephony revenues as lines in service fell 6.6% to 2.4 million. Local telephony still accounted for the lion’s share of turnover at 43%, whilst CTC’s mobile business Telefónica Móvil – which was last week given the green light to be sold to Spain’s Telefónica Móviles – contributed 32%. The cellco added 470,000 new cellular subscribers in the first half of the year to end June with a client base of 2.74 million, helping boost mobile revenues by 15%, though this was offset by a 28% rise in operating costs. CTC quickly moved to reassure investors that the company would remain profitable, saying that even without the cellco the company had a strong cash generation record.