Friday, February 24, 2012
Telefonica Leans on Latin America
Telefonica said its revenues grew 0.1% on an organic basis in 2011 to 62.84 billion euros. Its guidance at the start of the year had been for revenue growth of up to 2%. A 7.6% decline in revenues in Spain was offset by a 5 5% rise in revenue in Latin America. Telefonica said that changes in mobile termination rates "across all regions" had wiped 842 million euros off its revenues.
In the fourth quarter, Telefonica' revenues in Spain fell 9.5% year-on-year, in the UK they were down 6.8% in pound sterling and in Ireland by 16.7%. In the UK, call volumes were down almost 16% year-on-year. Still, in the quarter, revenues rose 1.2% in Germany, 5.3% in Brazil and 12.9% in Argentina. The Madrid-based group said it expects revenue to grew at more than 1% in 2012 at current exchange rates and that its capex-to-sales ratio will be the same as 2011 at about 16%. source: Telefonica statement
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