February 24, 2006
Cantv expects 2006 profit to soar 46%

(Bloomberg News) - "C.A. Nacional Teléfonos de Venezuela, Cantv, the country's largest telephone company, expects its 2006 net income to rise by as much as 46 percent as the country's expanding economy buoys consumer demand.

Cantv expects net income to rise to between Bs.890 billion and Bs.980 billion ($414 million to $456 million), according to a company statement.Revenue will likely grow by as much as 32% to Bs.6.7 trillion while mobile phone subscribers will increase by more than 20 percent, the company said.

'Government programs are creating an inflow of cash to the lowest two economic classes,' Chief Financial Officer Armando Yánes said on a conference call. 'We're finding new pockets of people with better economic power than before.'

Record oil income helped fuel increased government spending and 9.3 percent economic growth last year. Central Bank President Gastón Parra said the economy will likely grow 7% this year. Cantv fourth-quarter net income rose to $64 million, or 58 cents per American depositary receipt, from $8 million, or 8 cents, a year earlier, the company said. Sales by the mobile service, Movil-net, jumped 88 percent to $315 million".