Telefónica beats expectations with 40% profit hike

2 Mar 2006

Spanish telecoms giant Telefónica has reported a better than expected 40% rise in net profit for 2005, on the back of strong customer growth and acquisitions. The company said full year net profit reached EUR4.45 billion (USD5.28 billion), on the back of a 25.1% increase in revenues to EUR37.88 billion; OIBDA rose 25% to EUR15.28 billion. The results were boosted by strong growth in its broadband business as well as the incorporation of new Latin American units and Cesky Telecom, with the latter contributing revenues of EUR1.04 billion. Telefónica forecast that revenues would grow between 34% and 37% in 2006 with OIBDA rising between 26% and 29%.

Telefónica Group managed 153.5 million accesses at the end of 2005, up 24.3% year-on-year, of which 99.1 million were cellular subscriptions, 40.9 million were fixed lines, 12.9 million were data and internet lines and 700,000 million were pay-TV customers. Including subscribers of the recently acquired O2 Group, Telefónica’s total accesses topped 180.9 million.

Spain, Telefonica