Internet growth, acquisitions push Telefonica profits

Spain's Telefonica posted a 52% jump in fourth-quarter net profit, boosted by several Latin American acquisitions and Internet-driven growth in Spain, an Associated Press report said.

 

Telefonica said net profit for the quarter rose to 1.19 billion euros from 786.5 million euros a year earlier, while sales increased 27.5% in the quarter to 10.48 billion euros, the report said.

 

Domestic fixed-line unit Telefonica de Espana's revenue rose 4% to 3 billion euros, the report further said.

 

The report said Telefonica de Espana's sales growth was helped by a 21.4% increase in revenue from high-speed Internet access services to 516.7 million euros.

 

While several European former monopolies such as Deutsche Telekom AG and France Telecom had struggled to maintain growth in domestic fixed-line operations, Telefonica had effectively boosted Internet-related sales in Spain by offering packages that included Internet TV, the report further said.