Spanish Telco Giant Telefonica Q3 2009 profit falls!

Clearly giant Telco’s too have a bigger challenge as the L-Shaped recovery will take years and mere M&A is not going to boost the market share as smarter, nimbler, Cloud-aware Telco’s will penetrate the market and go after the much bigger attained market-share from these ailing giants.

Telefonica SA, Europe’s second- largest phone company, said third-quarter profit dropped 0.6 percent amid the worst Spanish recession in six decades.

Net income fell to 1.99 billion euros ($2.98 billion) from 2 billion euros a year earlier, Madrid-based Telefonica said today in a regulatory filing. Sales fell 5.7 percent to 14.13 billion euros. Analysts had predicted profit of 2.01 billion euros on sales of 14.23 billion euros, the average estimates compiled by Bloomberg.

Chairman and Chief Executive Officer Cesar Alierta last week agreed to spend 3.6 billion euros to buy companies in Brazil and Germany to increase growth outside of Spain. Last month he boosted the company’s 2010 dividend by 22 percent and pledged a higher payment for 2012.

Source

Disclosure: I am advising many Telco operators in emerging and established markets on Niche Cloud Computing projects

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