Telefonica net profit jumps 43%

28 Feb 2008

Telefonica has posted a 2007 net profit of EUR8.91 billion (USD13.38 billion), up 42.9% year-on year on the back of a strong performance by its wireless and Latin American operations. Operating income before depreciation and amortisation (OIBDA) for the twelve months ended 31 December 2007 rose by 19.3% to EUR22.8 billion, while full year revenues rose 6.7% to EUR56.44 billion. In absolute terms, Telefonica Espana contributed the most to group revenues, at 36.6% of the total or EUR20.68 billion, up 4.7% on 2006, followed by Telefonica Latinoamerica (35.6%, EUR20.09 billion, up 11%) and Telefonica Europe (25.6%, EUR14.46 billion). CAPEX for the year totalled EUR8.03 billion, an increase of 0.3% year-on-year.

Operationally, at the end of 2007 Telefonica claimed 15.897 million fixed telephony accesses in Spain and 2.36 million retail broadband customers. Telefonica Moviles Espana, the group’s domestic wireless operation, added 1.38 million customers to its ranks in 2007 to take its total to 21.47 million, while Telefonica Latinoamerica managed 134.1 million accesses at the end of 2007, a year-on-year increase of 16.9%, boosted by growth of 22.4% in cellular customers to almost 102 million. Telefonica Europe’s customer base, which includes the O2 group, rose by 8.7% to 41.9 million.

Telefonica also announced plans to buy back 100 million of its shares, or 2.095% of its capital, by the first half of 2009. At current prices the buyback is estimated to be worth about EUR1.96 billion.

Spain, Telefonica