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Telefonica's Second-Quarter Profit Doubles


Spanish telecom giant Telefonica said Monday its second-quarter net profit more than doubled, boosted by a 1.3 billion euros ($1.8 billion) capital gain from the sale of radio operator Airwave.

The Madrid-based company raised its revenue growth target for 2007 to between 8% and 10%.

Telefonica, the largest telecommunications company in Spain and Latin America, said net profit rose to 2.57 billion euros ($3.50 billion) from 1.14 billion euros ($ 1.55 billion) a year earlier.

Operational income before depreciation and amortization, or Oibda, stood at 6.16 billion euros ($8.40 billion) for the quarter, up 34.4% from 4.59 billion euros. Oibda is Telefonica's preferred measure of profitability.

Revenue rose 6.5% to 14.08 billion euros ($19.2 billion) from 13.22 billion euros in the same period last year.

Telefonica's shares were up 0.6% at 17.11 euros ($23.36) in morning trading in Madrid.

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