Spanish telecoms giant Telefónica (NYSE: TEF) saw net profits of 2.00bn euros (US$2.53bn) in the third quarter of 2008, down 50% compared to the same period the previous year, the company said in its latest earnings report.
The operator recorded revenues of 15.0bn euros in 3Q08, up 5.7% from 14.2bn euros in the year-ago period.
For the first nine months of the year, Telefónica generated a net profit of 5.60bn euros, down 28.7% compared to the same period last year. Revenues for the first three quarters of the year amounted to 43.1bn euros, climbing 2.7% compared to the same period the previous year.
Telefónica said that net profits during the first nine months of the year were impacted by the capital gains from the sale of companies Airwave and Endemol in 2007.
Telefónica's total customer base expanded 14.9% to 249mn clients at the end of the third quarter.
LATIN AMERICA
The company had 153mn subscribers in Latin America at end-September, climbing 21.1% compared to end-3Q07.
The company's capex during the first nine months of the year totaled 5.41bn euros, up 7.5% compared to the same period the previous year. Capex in Latin America reached 2.40bn euros in the first three quarters, up 27.5% compared to the same period last year. Capex in Latin America was oriented to the broadband and pay TV segment as well as to the expansion of GSM and 3G networks.
Telefónica's Latin American operations saw sales of 5.78bn euros in the third quarter of the year, an increase of 14.5% compared to 5.05bn euros in 3Q07.
"Latin America continues to increase its contribution to consolidated results. This growing region already represents 38% of our total revenues," company CFO Santiago Fernández said during a conference call.
The company ended the quarter with 118mn mobile subscribers in Latin America, an increase of 26.7% compared to end-3Q07. Fixed telephony lines reached 25.8mn subscribers, inching up 1.4% year-over-year.
Meanwhile, broadband subscribers totaled 5.87mn in the region at the end of the quarter, surging 24.9% compared to the same time the previous year, while pay TV clients reached 1.46mn, up 66% year-on-year.
Fernández said that mobile telephony, broadband and pay TV segments were the drivers of growth during the quarter in Latin America.
In the mobile segment, the executive said that the company recorded significant growth rates in Brazil and Colombia. He also said that despite the already high penetration levels, TEF continues to record a high growth rate in Argentina and Chile.
The company is on track to fulfill 2008 guidance, he added.
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