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Telecom Argentina Profits Strengthened by Wireless

5:55 am on August 11, 2007 | Category: Business, Corporate, Telephone, Wireless

Argentina’s second-largest telephone company, Telecom Argentina SA, posted a huge increase in second-quarter profit, after selling its phone book business and adding more wireless subscribers.

Net income almost tripled to 252 million pesos ($80 million), compared to just 96 million pesos in the same period a year earlier. Quarterly revenue was up 23% to 2.1 billion pesos.

Ongoing expansion in Argentina’s economy has fueled massive growth in the country’s mobile phone sector in the past few years. Approximately 82% of Argentinians now own at least one cell phone, compared to just 53% a year ago, according to Tllaria Ledesma y Cia analyst, Guido Bizzozero.

â€œTelecom Argentina not only increased its subscriber base, but customers are also using their telephones more,â€ Bizzozero explained in a telephone interview before the Buenos Aires-based company’s results were released.

Telecom Argentina’s shares closed down 3.7% on the Buenos Aires stock exchange Thursday, but has gained 71% in the past year, compared with a 28% gain in the benchmark Merval stock index.

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