 Telefonica is keen to branch out from Spain and Latin America |
Spanish telecoms giant Telefonica has reported a surge in quarterly profit, boosted by acquisitions and income from its operations in Latin America. Net profits in the three months to September rose by 53.5% to 1.42bn euros ($1.66bn; �954m).
Telefonica said its profits had been supported by contributions from its recently acquired Czech operator Cesky.
Earlier this month, Telefonica put in a surprise �17.7bn takeover bid for British mobile phone operator O2.
The offer, which is backed by O2's board, would see the Spanish firm gain a foothold in two of Europe's largest mobile phone markets - the UK and Germany
O2 bid questioned
Stronger south American currencies also helped lift Telefonica's third-quarter profits when converted into euros, the company said.
The Brazilian real, Argentine peso and Chilean peso have all gained against the European currency in recent months.
Telefonica derives half of its income from Latin America.
On a nine-month basis, the company reported better-than-expected net profits of 3.25bn euros.
However, Telefonica's shares have fallen by about 5% since the company's announcement of its offer for 02, with some investors questioning the price being paid and the strategy behind the move.
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