Spanish mobile group Telefónica Móviles (TEM) posted its slowest profit increase in a year as increased competition resulted in higher marketing costs and a dent in its balance sheet. Net profit for the three months ended 31 March 2006 rose to EUR447 million (USD568 million), from EUR432.1 million a year earlier, and operating income before depreciation and amortisation (OIBDA) climbed 11.7% to EUR1.47 billion. TEM posted a 17.7% rise in revenues to EUR4.33 billion, mainly on the back of the integration of the ten Latin American cellcos it acquired from Bellsouth in late 2004. Whilst revenues in Spain grew just 4.4%, LatAm turnover leapt 35.5% to EUR2.17 billion, with OIBDA up 57% to EUR554 million. The only LatAm operation to struggle was the company’s Brazilian unit Brasilcel (Vivo), which posted a 4% decrease in OIBDA due to fierce competition. At the end of March TEM had 98.5 million subscribers worldwide, up 21% on 1Q2005, 75 million of which were in Latin America.