Friday, September 10, 2010
RSS Entries Follow us on Twitter Follow us on Facebook
Telefonica Second-Quarter Net Rises on Latin America

Telefonica Second-Quarter Net Rises on Latin America

Telefonica SA, Europe’s second- largest phone company, posted a better-than-expected 16 percent gain in second-quarter profit on units in Latin America, where it closed a 7.5 billion-euro ($9.8 billion) deal yesterday.

Net income rose to 2.12 billion euros from 1.83 billion euros a year earlier, Madrid-based Telefonica said today in a regulatory filing. Analysts had predicted a 1.94 billion-euro profit, the average of 13 estimates in a Bloomberg survey. Sales climbed 9 percent to 15.12 billion euros.

Chairman Cesar Alierta is expanding abroad to fuel growth as revenue at home diminishes. The company agreed yesterday to buy out Portugal Telecom SGPS SA’s stake in Brasilcel NV, a venture that controls Brazil’s biggest wireless operator. The purchase will add to profit from the first year, it said.

Telefonica rose 0.7 percent to 17.01 euros in Madrid yesterday. The shares have fallen 13 percent so far this year, more than the 0.7 percent decline in the 24-stock Bloomberg Europe Telecommunication Services Index.

Sales from Telefonica’s Spanish division fell 3.2 percent to 4.69 billion euros, while revenue elsewhere in Europe rose 14 percent to 3.79 billion euros. Sales at the Latin American unit climbed 16 percent to 6.4 billion euros.

The company repeated its earnings and dividend goals in today’s statement. Telefonica has pledged to pay a 2012 dividend of at least 1.75 euros per share.

Operating Income

Operating income before depreciation and amortization rose 4 percent to 5.79 billion euros. Analysts had predicted Oibda of 5.52 billion euros on sales of 14.53 billion euros, according to the survey. Oibda as a percentage of sales fell to 38.3 percent from 40.1 percent.

Alierta wants to have full control of Vivo to integrate the wireless operator with Telefonica’s fixed-line unit Telecomunicacoes de Sao Paulo SA, or Telesp.

In local currency terms, Telesp posted a decline of 0.5 percent in second-quarter sales, with Oibda slumping 12 percent, while Vivo sales grew 10 percent, boosting Oibda 10 percent.

Source

Related posts:

  1. Telefonica First-Quarter Net Rises on European Growth
  2. Telefonica, Portugal Telecom Agree on Vivo Stake; Oi Deal Seen
  3. Portugal Telecom Falls as Telefonica Ends Vivo Bid
  4. Telefonica May Merge Telesp Into Vivo on Takeover, Valor
  5. Portugal Telecom Squeezes $2.3 Billion Out of Alierta

Tags: , , , , , , , , ,


This entry was posted on Thursday, July 29th, 2010 at 11:48 am and is filed under Stock & Bond Market News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Bradesco Net Rises 23% in Second Quarter on Lending

Banco Bradesco SA, Brazil’s second- biggest bank by market value, said second-quarter profit increased 23 percent as lending expanded in Latin America’s largest economy.

Adjusted net income, which excludes one-time events, rose to 2.46 billion reais ($1.39 billion), or 2.19 reais a share, from 2 billion reais, or 2.06 reais a share, a year earlier, the Osasco, Brazil-based bank said today in a regulatory filing. That exceeds the mean estimate of 2.26 billion reais in a Bloomberg survey of four analysts. Net income rose 4.7 percent to 2.41 billion reais.

Brazilian bank lending rose for the 16th straight month in June to a record of 1.53 trillion reais, led by loans made by the state development bank, BNDES, and mortgages, the central bank said yesterday. Bradesco’s loans expanded 15 percent to 244.8 billion reais in the quarter, while total assets increased 16 percent to 558.1 billion reais.

“Bradesco continues to enjoy a solid capital ratio,” Eduardo Nishio and Eduardo Rosman, analysts at Banco BTG Pactual SA, wrote in a July 21 note to clients. “Macroeconomic fundamentals are constructive, allowing the bank to comfortably accelerate growth in 2010-2011. We expect the bank to post the strongest loan growth among large banks, with 24 percent in 2010.”

Bradesco’s preferred stock has risen 2.5 percent this year. Itau Unibanco Holding SA, Brazil’s largest lender by market value, dropped 0.5 percent in the period while the benchmark Bovespa index lost 2.8 percent.

Source