Telefonica reports 84% increase in 3Q net profit

14 Nov 2006

Spanish telecoms giant Telefonica said its third quarter net profit rose more than 84%, boosted by the consolidation of recent acquisitions and one-time gains from the sale of directory company Telefonica Publicidad e Informacion.

Net profit for the three months ending 30 September rose to EUR2.61 billion (USD3.35 billion) compared to ER1.42 billion in the same period of 2005. Revenue, meanwhile, grew 37% to EUR13.54 billion (USD17.37 billion) from ER9.87 billion. The group’s wireless subsidiary Telefonica Moviles — traditionally the main contributor to the group’s net profit — was incorporated into the parent company earlier this year. The third quarter is the first time the mobile assets have been included in the parent company’s earnings figures.

Nine-month revenues topped analyst’s expectations, rising 43.1% to EUR38.7 billion, versus an average consensus forecast of EUR38.55 billion, while OIBDA rose 35.9% to EUR14.65 billion. At the end of September the group claimed to be responsible for 195.9 million access lines, an increase of 33.1% in twelve months. Cellular subscriptions reached 138.4 million, up 47.9% year-on-year, while retail broadband connections rose by 45% to 7.3 million. Pay-TV customers totalled 900,000 at the end of the period, up 62.2%.

Spain, Telefonica