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Telecom Argentina net income up sharply on cell phone and Internet growth(Associated Press WorldStream Via Thomson Dialog NewsEdge) BUENOS AIRES, Argentina_Telecom Argentina SA expects its revenue growth rate to slow as cellular telephone penetration of its markets increases, Chairman Carlos Felices said Friday in a conference call with analysts. But Felices added that markets for cell phones will not be saturated for at least two years. "There's still room for growth," he said. The comments came after Telecom Argentina reported late Thursday that its first half net income nearly tripled to 387 million Argentine pesos (US$123 million, 90.1 million) from 99 million pesos (US $31.5 million, 23 million) in the same period one year ago. Sales growth of 26 percent was driven mostly by its cell phone and Internet operations, Telecom's statement said. It noted demand for broadband internet services remained the main driver of growth. Broadband Internet subscribers virtually doubled to 602,000 in the period, while the company's cellular telephone customer base also increased by 47 percent to 11.3 million. It said fixed telephone lines in service also rose 4 percent to 4.1 million. Telecom Argentina stopped distributing dividends in 2001, when the country entered into a deep economic crisis. A robust recovery began four years ago and officials say the company's ability to resume dividend distribution now depends on the closing of debt restructuring. Felices said Telecom Argentina will continue to pair down its debt thanks to growing cash flow and said operations were not under any pressure as a result of its obligations. Net debt at the end of the half was 2.78 million pesos (US$883,000, 647,000), down 1.2 million pesos (US$389,000, 285,000) from the same period a year earlier. Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |