Telefonica posts 0.6-pct profit fall in Q3

13th November 2009, Comments 0 comments

The net profit of the Spanish telecommunications operator fell from EUR 2 billion a year earlier to EUR 1.99 billion.

Madrid – Spanish telecommunications operator Telefonica reported a 0.6 percent third-quarter fall in net profits on Thursday as strength in Latin America offset ongoing weakness in recession-hit Europe.

Net profit at Europe’s second-largest phone company in the July-September period fell to EUR 1.99 billion from EUR 2.0 billion a year earlier, it said in a regulatory filing.

During the first nine months of the year net profit inched up 0.3 percent to EUR 5.61 billion over the same time last year while revenues fell 3.3 percent to EUR 41.72 billion.

But while revenues fell in the January-September period by 6.7 percent to EUR 14.65 billion in Spain and were down by 5.9 percent in the rest of Europe at EUR 10.05 billion, they rose 1.9 percent to EUR 16.62 billion in Latin America which has not been affected as strongly by the global downturn.

Activity in Latin America was driven by strong markets in Brazil and Argentina.

Earlier in November, Telefonica boosted its offer for Brazil's GVT by 5.2 percent to about EUR 2.7 billion to fend off a rival bid from France's Vivendi.

Acquiring GVT would allow Telefonica to grow in southern Brazil, where the company does not currently operate.

Brazil is Telefonica's second-biggest market after Spain. It currently offers fixed-line and Internet services in Sao Paulo, Brazil's richest state.

AFP / Expatica

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