Telefonica Moviles reports improved profits

Spanish mobile service providers Telefonica Moviles have reported a 13.4-percent rise in net profits in 2005 over 2004. The profits have now risen to an impressive 1.91 billion euros (2.27 billion dollars).

However, this is below the market expectations of profits of 1.92-2.03 billion euros. The company added that they had included in the results an 89.0-million-euro provision to cover the withdrawal by the Italian government of a third generation UMTS mobile license.

If we excluded this, the profits would have broken the 2.0 billion euros market, which would have exceeded the market expectations and company’s earlier predictions. The company is the market leaders in Spain and also dominates the Latin American region

They provide services in as many as 15 countries on three continents with 94.4 million clients in total.