Spain's Telefonica reports profit jump on Latin America
Spanish telecoms group Telefonica reported a 15.9 percent gain in second quarter net profit Thursday as double-digit revenue growth in Latin America and the rest of Europe offset domestic weakness.
The company said net profit came to 2.12 billion euros (2.76 billion dollars) in the April-June period, up from 1.88 billion euros in second quarter 2009.
Analysts polled by Dow Jones Newswires expected a second quarter net profit of 1.91 billion euros.
Revenues rose 9.0 percent to 15.12 billion euros in the second quarter.
But while revenues fell 3.2 percent to 4.69 billion euros in Spain, where the unemployment rate has soared to 20 percent, they jumped 16 percent to 6.44 billion euros in Latin America, which Telefonica called "one of the best performing regions of the world."
In the rest of Europe, where Telefonica operates under the 02 brand, revenues increased 14 percent to 3.79 billion euros.
Telefonica announced Wednesday that it was taking control of Brazilian operator Vivo in a deal with Portugal Telecom worth 7.5 billion euros.
For the first half to June, Telefonica, Europe's second-largest telecommunications company by market capitalization behind Vodafone, recorded a net profit of 3.77 billion euros, up 9.4 percent over the previous year.
© 2010 AFP