Telefonica (NYSE: TEF), Europe’s second largest telco, reported fourth quarter profit surged 89 percent, boosted once again by the strong performance of its Latin American unit which continued to add new customers. Net income climbed to 2 billion euros ($2.54 billion) up from 1.06 billion euros($1.36 billion) a year ago. According to a Bloomberg survey, analysts had predicted a 1.98 billion euro ($2.53 billion) profit. Revenues were up slightly, moving up 2.6 percent to 14.8 billion euros ($18.9 billion).

In Spain, Telefonica’s home country, the operator saw its wireless subscriber base grow 6.8 percent year on year. Revenues, however, fell 1 percent in Q4 to 2.38 billion euros ($3.05 billion). In Latin America, or what Telefonica calls its “growth engine,” sales climbed 8.5 percent in Q4, boosted by strong customer growth in Uruguay, Venezuela and Argentina. European sales, in which Telefonica runs its O2 network in Britian, Ireland, Germany, and the Czech Republic, dipped 1.7 percent, to 3.68 billion euros ($4.7 billion). In the UK, however, where O2 is the only operator to sell the iPhone, revenues rose 10.4 percent in the quarter, boosted by “increased activity” around the gadget at the end of the year. By comparison, sales in Germany were flat, while Ireland declined 2.8 percent.

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