Huge Profits Forecasted for Telefonica
February 25th, 2010
According to forecasts by analysts, Telefonica, the Spanish telecommunications group, is expected to announce net profits tomorrow of nearly 8,000 million euros for 2009, representing an increase of 2.7% over last year’s results.
These results will include the devaluation of the bolivar in Venezuela which, as announced on the 5th of February by Telefonica, will have a negative impact of 548 million euros. Venezuela is Telefonica’s second-largest revenue generator in South America, accounting for almost 7 percent of their revenue in the first nine months of 2009.
However, the effect of the bolivar’s devaluation is mostly counteracted by Telefonica’s reduction of 591 million in taxes through the amortization of “goodwill tax” due to recent purchases of foreign companies.
Analysts from the Ahorro Corporación have raised their profit forecast for Telefonica to 7905 million euros, while BBVA estimates were said to be 7,793 million and BNP Fortis expects figures of 7,746 million euros.
Related Posts
- Huge Profits in Christmas Text Messages
- Telefonica: Google Should Pay Us Network Fees
- “3D” Boosting Spanish Cinema Revenue
