Telecom Argentina more than triples profits in 2007

11 Mar 2008

BNamericas reports that former incumbent telco Telecom Argentina (TEO) posted a net profit of ARS884 million (USD280 million) in 2007, up 262% compared to ARS244 million in 2007. The bottom line was boosted by the sale of the company’s telephone directory business Publicom to Spanish firm Yell Publicidad, bringing in ARS102 million during the second quarter of 2007.

Full year consolidated revenues for 2007 came to ARS9.07 billion, up 23% year-on-year, boosted mainly by growth in the mobile and internet segments. The company’s fixed telephony business, including voice, data transmission and internet services, generated revenues of ARS3.3 billion last year, up 8% on 2006’s figure. Fixed lines in service at the end of 2007 totaled 4.2 million, while TEO’s broadband client base rose 71% during 2007 to reach 783,000 at the year-end.

Telecom Personal, TEO’s mobile subsidiary, posted net profits of ARS370 million in 2007, a 497% jump from ARS62 million the previous year. Revenues for 2007 totaled ARS5.79 billion, up 34% from ARS4.33 billion in 2006. CAPEX was ARS649 million, up 3% compared to 2006, mainly on the expansion of its GSM network and 3G launch in Argentina. Domestic investment totaled ARS553 million, while total CAPEX in Personal’s Paraguayan unit Nucleo was ARS96 million. Personal saw its subscriber base in Argentina grow 27% in 2007, reaching 10.7 million at the year-end. At the same date Nucleo had 1.6 million users, up 40% on the previous year.