Telefonica Profits Dip on One-Off Items and Currency Changes
Published on: 25th Feb 2009
Note -- this news article is more than a year old.
Telefonica has reported a 15% drop in full year profits for 2008 thanks to one off items and currency fluctuations. The company posted a profit of 7.6 billion (USD9.8 billion), while revenues rose to 57.9 billion (USD74.2 billion) for the full year.
The decline in profits compared to the 2007 results was due to gains that year from the sale of the UK based emergency radio network, Airwave, and television production company, Endemol.
The company ended last year with a total of 259 million customers. This growth was driven by the increases in wireless (+16.6%), broadband (+20.9%) and pay TV (+29.7%) accesses. By region, the contribution by Latin America is especially noteworthy, with over 158 million customers across the region at the end of December (up 18.0% on December 2007).
CapEx in the full year amounted to €8.4 billion, up 4.7% on 2007. This increase was mainly driven by investment in broadband, pay TV and expansion of the coverage and capacity of wireless networks in Latin America. CapEX will be restricted to no more than €7.5 billion during 2009.