Telefonica 1Q06 results

Telefonica announced strong 1Q06 results with net income growing 40% to €1.3bn, on revenues soaring 45% to €12bn, as reported. Telefonica added in the fiscal year two companies: Cesky Telecom (Czech Rep.) and O2 (UK). Its OIBDA jumped 37% to €4.7bn. Revenues are coming 36% from Telefonica Moviles, 20% from Telefonica O2 Europe, 19% from Telefonica Latinoamerica, and 24.5% from Telefonica de Espana. The geographical split gives: Spain 41%; rest of Europe 22%; Latam 37%.

Telefonica Moviles reported a 18% revenue growth to €4.3bn (of which 50% in Latam), driven by the growth in customers (+21%) in Latin America. OIBDA increased by 11.7% to €1.5bn, and net income grew 3.5% to €447m. Telefonica de Espana reported a mere 3% increase in sales, with a fall of 3% in the fixed line unit and a growth of 35% in broadband revenues.

Telefonica reported 184m customers as of March 31, of which 131.5m are mobile users (almost 74m in Latam, 20m in Spain, 33m in Europe outside Spain), 6.3m are broadband fixed internet users.