Spain-based holding company Telefónica Móviles has reported a surge in first quarter revenues to EUR3.68 billion, up 39% on the corresponding period last year, while net income dipped 4% to EUR432 million. Sales were boosted by the consolidation of Telefónica Móvil Chile and the acquisition – completed in January 2005 – of former BellSouth assets in Argentina, Colombia, Chile, Ecuador, Guatemala, Nicaragua, Panama, Uruguay and Venezuela. Pro forma revenues (consolidating the recently purchased assets in the first quarter 2004 results) rose by 13.8% compared with first quarter 2004. Móviles’ domestic market continues to make the largest contribution (56%) to overall group revenue, though Latin America, which accounted for the remainder, is rapidly closing the gap. Capital expenditure for the group increased 46% to EUR311 million, with the largest growth in outlay coming from Brazil, where investment more than tripled as network capacity was increased and EV-DO rollout continued. The company added three million new customers in the quarter, lifting the total managed wireless subscriber base to 81.4 million, an increase of 50% year-on-year.