Telefónica de Argentina reports 1Q profits of USD32.8 million

9 May 2007

Argentine fixed line operator Telefónica de Argentina (TAR) has reported 1Q2007 net profits of ARS101 million (USD32.8 million) according BNamericas, quoting a company statement. This represents a year-on-year increase of 129.5%, from ARS44 million in 1Q2006. TAR, the local unit of Spain’s Telefónica, plans to invest ARS1.6 billion in 2007, chiefly for continued expansion of the company’s mobile and broadband infrastructure.

‘The company has a manageable debt profile and has reduced debt by half since 2002. Currently its debt sits at USD800 million,’ said analyst Paola Briano, adding that USD190 million in debt payments was coming up in November this year. According to TeleGeography’s GlobalComms database, TAR ended 2006 with 4.6 million fixed line subscribers and over half a million broadband customers. TAR is concentrating on the broadband segment to boost flagging fixed line revenues, Briano said, though she noted that TAR’s fixed line revenues were still considerable despite a freeze on calling rates.

Argentina, Telefonica Argentina (Movistar)