MADRID, Spain – Telefonica SA’s net profit rose 2.3 percent in the fourth quarter, boosted by growth in key Latin American and Spanish divisions, the company said Thursday.
Madrid-based Telefonica, the largest telecommunications company in Spain and Latin America, said net profit in the quarter ending Dec. 31 rose to 1.06 billion euros ($1.59 billion) from 1.04 billion euros a year earlier.
Operational income before depreciation and amortization, Telefonica’s preferred measure of profitability, came to 4.58 billion euros ($6.89 billion), also up 2.3 percent. Revenue increased 1.6 percent to 14.43 billion euros ($21.71 billion).
Telefonica’s Spanish cellular customers rose 6.4 percent to 22.42 million in December from 22.83 million a year earlier. Its high-growth Latin American division said revenue rose 11 percent to 20.08 billion euros ($30.19 billion). Telefonica’s clients in the region rose 17 percent to 134.1 million at the end of December as the company added cellular and high-speed Internet users.
Net profit for the year rose 43 percent to 8.91 billion euros ($13.4 billion), while sales gained 6.7 percent to 56.44 billion euros ($84.91 billion).
Telefonica said it expects revenue growth this year of 6 percent to 8 percent, and OIBDA growth of 7.5 percent to 11 percent. Operating income is set to rise between 13 percent and 19 percent.
Shares in Telefonica fell 1.4 percent to close at 19.35 euros ($29.10).
