Telefonica Moviles has announced better-than-expected Q1 results. Net profits for the period rocketed by 85%, as the company attracted customers in its core Spanish market. Pro forma net profits were E287 million in Q1, compared to E155 million for the same period in 2001.
The Spanish operator claims that its client base increased by 21%, to reach a total of 30.8 million users. It attracted 965,000 new clients, with 521,500 of these in Spain. The steep rise in clients is contrary to the experiences of other operators: rivals such as Vodafone, Orange and TIM have seen a slowdown in the growth of new customers.
Revenues also grew in Latin America by 8.7%, as heavy currency losses in Argentina and Brazil were compensated by new businesses in Mexico and Brazil. The collapse of the Argentine peso cost Telefonica Moviles E15.9 million in profits and E145.5 million from its reserves.