TEM Aims to Grow 7-10%, Mostly Boosted by LatAm"

Spain's Telefónica Móviles plans to grow its revenues by 7-10% in the next four years, particularly boosted by the positive market performance in Latin America, international press quoted board member Antonio Viana-Baptista as saying.

The mobile operator sees its Latin American operations growing at rates between 11-14% annually.

In Brazil, TEM's largest Latin American operation, the company expects to increase revenues 1-4% per year in the next four years, Viana-Baptista said during the 5th annual analysts meeting of TEM parent company Telefónica. The executive emphasized TEM's determination to maintain its presence in Brazil through Vivo, and thus denied rumors that the company is reducing investments in the country.

Viana-Baptista said TEM's strategy is to take advantage of its experience in the European market in order to increase the value offering to its Latin American clients.

Telefónica Móviles also forecasted 8-12% growth in operating income before depreciation and amortization (Oibda) and around US$110bn in investments for the 2006-2009 period. For 2006 the company expects 9-12% growth in revenues and OIBDA.

During 2005, revenues from Latin American operations grew 117%, to reach 7.7bn euros (US$9.16bn). The client base in the region went up 33.8% to total 70.5 million users.

BNamericas.com"

Posted to the site on 26th May 2006