Spanish cell phone operator, Telefonica Moviles has reported a 51% rise in net profits for 2001. Net profit increased from E591 million in 2000 to E893 million for 2001. The operator has achieved the growth despite incurring losses from the devaluation of Argentina’s currency.
The company’s performance in the Spanish market was better than expected. Earnings from Telefonica Moviles’ domestic market grew by 57% to E2.8 million. However, its Latin American interests performed lower than expected. Earnings fell by 1.9% mainly due to exchange rate differences. The devaluation of Argentina’s Peso hit Moviles’ figures, it cost the company E297 million.
Moviles, part of Spain’s Telefonica group, has adjusted its accounts to aid comparisons. The company restated its 2000 figures to include companies that formed part of the group at the end of 2001, but not in the previous year.