Spain's Telefonica turns to Latin America for profits
8 Nov 2012 10:19
MADRID, SPAIN: Spanish telecoms titan Telefonica erased the red ink and posted a third-quarter profit on Wednesday as it turned away from crisis-hit Europe to find riches in Latin America.
Telefonica, the third-largest company in Spain by market value, said it made a net profit of €1.38bn (US$1.8bn) in the third quarter, after posting a year-earlier loss of €429m.
Sales dipped 1.6% to €15.54bn.
Telefonica's losses in the same quarter of 2011 had been caused in part by the high cost of a staff-reduction plan in Spain.
However, the group's ability to turn a profit in 2012 also hinged on its ability to shore up sales in Latin America to offset the impact of a biting recession in Spain and economic troubles elsewhere in Europe.
Over the first nine months of 2012 combined, Telefonica's net profit surged 26.4% from a year earlier to €3.46bn and revenues eased just 0.3% to €46.52bn.
"Revenues in Latin America surpassed for the first time those from Europe and now represent 49% of the group total," Telefonica said in a statement.
Investors welcomed the results, sending Telefonica shares up 1.22% to €10.34 in morning trade.
Telefonica managed to cut its debt by €2.3bn in three months to a total €56bn as of September 30, and said it had lopped off another €3.2bn since then through asset sales and asset management.
The group, which had announced in July it was suspending dividend payments to shareholders, confirmed plans to distribute a payout of €0.75 a share in 2013.
Source: AFP via I-Net Bridge
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.