Telefonica to focus on investment in Brazil
Date added: 15th April, 2011 at 10:00
(view all articles from April, 2011)
Categories: Economy
Spanish telecommunications company Telefonica may cut jobs in its homeland to focus on investment in Brazil.
The firm hopes to increase the number of mobile high-speed internet customers in the Latin American country to 5.5 million by the end of 2013, but may decrease its workforce in Spain by 20 per cent in that time.
However, chairman of Telefonica Espana Guillermo Ansaldo said no decision had been set in stone when it comes to laying off staff.
At the end of 2010, the firm had around 200,000 Brazilian mobile internet customers and it is in this country that the company continues to see growth, while a decline in consumption is being seen in its homeland.
"The evolution (of the Spanish unit) has been worse than we expected," Mr Ansaldo stated.
Brazil is currently Telefonica's largest market and accounts for nearly a fifth of its revenue, although it also operates in 24 other countries including six nations in Europe and 13 elsewhere in the world.
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Numbers of hotels for sale in Brazil to rise?
Hotel Interactive reported on the comments of senior vice-president of Lodging Econometrics Bruce Ford, who explained at the BITAC luxury event that the World Cup and the Olympic Games, which are soon to be hosted by the nation, will give the industry a boost.
"They have some tremendous events coming up in Brazil over the next several years … and they will need to build hotels and they will need to become more branded," he said.
In 2014, the World Cup will be played over 12 cities in the country, while the Olympics will be held in Rio de Janeiro in 2016.
Mr Ford said that developers' plans are "largely unannounced" at the moment but he predicted that 30,000 rooms could be under construction by the end of next year.
"The more branded that they become the more that banks are going to get interested, the more that international investors are going to get interested," he asserted.
Currently, there are around 11,000 rooms being built, the news provider noted, with another 15,000 more announced as part of new projects this year.
Hotel Interactive stated that changes in the Brazilian population may also be positive news for the sector.
Indeed, the Brazilian Institute of Geography and Statistics (IBGE) recently revealed that usual real income among its people had reached R$1,540.30 (£588.57) in February compared with R$1,485.94 at the same point a year earlier, representing a 3.7 per cent annual increase.
This may reflect the increasing number of individuals in work in the country, as the figures also showed the unemployment rate dropped to 6.4 per cent last month, compared with 7.4 per cent 12 months previously.
In February, there were around 10.7 million people with jobs with formal contracts – a 6.9 per cent rise on statistics from a year earlier, or an extra 687,000 roles.
Other positive changes in Brazil reflected in statistics from the IBGE include a 1.2 per cent increase in retail sales in January compared with the month before, the ninth hike seen in as many months.
Meanwhile, nominal revenue in the sector grew by 1.1 per cent, rising for the 13th consecutive month....
Date added: 31st March, 2011 at 10:03
(view all articles from March, 2011)