Telefonica's Latin American profit 'may rise'
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Telefonica may announce a 24 per cent increase in first quarter income, totalling 1.56 billion euros (£1.23 billion), according to Bloomberg analysts.
Growth in the company's Latin American operations may result in sales reaching 13.95 billion euros, up from 13.75 billion euros last year, according to figures based on the opinions of seven experts.
Europe's second largest telephone operator expected revenue in Latin America to increase by 11 to 14 per cent in 2008 and its customer base in the region to expand to more than 150 million, the company reported.
The Madrid-based company saw an average growth of 16.9 per cent last year, bringing its total number of customers in Latin America to 134 million, largely thanks to the expansion of broadband and a strong wireless market.
A recent report by Research and Markets found that broadband in Latin America grew by 40 per cent in 2007, while mobile penetration was above the world average at 66 per cent.
"The increased demand for higher speed internet in South America is another indication of the burgeoning success of business, as well as increased affluence in the populace. These factors present South American markets as an even more viable investment market than the highly successful one that they have been," Matt Legg, Emerging Earth.
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