Latin America Unit Growth Boosts Telefonica

Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

On May 13, 2009, Telefonica(TEF Quote) reported that its Q1 FY09 earnings grew 9.9%, driven by impressive growth in its Latin America unit. Net income increased to EUR 1.69 billion or EUR 0.37 per basic share from EUR 1.54 billion or EUR 0.33 per basic share in Q1 FY08.

TEF's revenue fell 1.4% to EUR 13.70 billion, impacted by a 4.7% decline from foreign currency translations. Telefonica Espana revenue dropped 4.2% to EUR 4.91 billion, hurt by increased competition and reduced consumption of voice services from customers. Within the segment, Wireline business sales marginally declined to EUR 3.06 billion, while Wireless business revenue decreased 9.4% to EUR 2.17 billion. Telefonica Latin America revenue rose 4.7% to EUR 5.40 billion, fuelled by organic growth and an increase in bundled products, along with an improved portfolio of broadband, pay TV and data services. Telefonica Europe revenue dropped 6.5% to EUR 3.25 billion, driven by successful retention activities across markets. ...