Wednesday, May 12, 2010

Telefónica Reaches 273 million accesses, Up 4.6% year-on-year

In its quarterly financial report, Telefónica said results fell within its expectations with higher
revenue growth (+1.7% year-on-year) and positive trends in all markets, particularly Europe. Telefónica's net
profit rose 2% to 1,656 million euros. Revenue growth has picked up and risen 1.7% in reported terms (-2.1% for full year 2009) putting net revenue at 13,932 million euros. In organic terms growth was 0.9% compared to the
same period in 2009 (+2.4%, stripping out regulatory impacts), with Latin America and Europe
contributing the most to this organic growth (2.1pp and 0.4pp, respectively).

As of 31-March-2010, Telefónica was serving 273 million accesses worldwide (+4.6%, 2.6 percentage points
more than at 31 December 2009).

The number of adds grew 16.9% year-on-year which, combined with customer loyalty initiatives, saw net adds nearly multiplying by 2.6 times the figure of the same period in 2009. Excluding accesses at Hansenet and Medi Telecom in both periods, net adds in the first quarter of 2010 totaled 4.3 million accesses in organic terms.

By regions, of particular note is the increase in the number of Telefónica Europa (+6.7% year-on-year organic growth) and Telefónica Latinoamérica (+8.1% year-on-year) customers. By segments, we would highlight the growth in wireless accesses (+8.7%), fixed broadband (+8.7% in organic terms) and pay-TV (+9.3% in organic terms).

The broadband businesses (wholesale+retail) totaled 35 million accesses at 31 March. The retail fixed broadband business increased 25.2% (+8.7% year-on-year in organic terms) while the mobile broadband business advanced 97.5%.

Telefónica Group wireless accesses advanced 4.4 million in the first quarter to 206 million. The contract segment increased to 2.3 million accesses, contributing 53% to total net adds in the 3
quarter and accounting for 30% of total wireless accesses at 31 March.

Also worth highlighting is the performance of wireless net adds in Spain (189,000 accesses in the quarter vs. 10,000 in the same period in 2009) and Latin America (+3.7M Accesses).

Mobile broadband accesses increased to 16 million in the quarter.

In Spain 89% of retail broadband accesses are bundled as part of either a dual or triple service package, while in Latin America 57% of broadband accesses are bundled as part of a dual or triple package.

Pay TV accesses stood at 2.6 million at 31 March 2010 (+9.3% year-on-year in organic terms). It is also worth mentioning that the company now has pay TV operations up and running in Spain, the Czech Republic, Germany, Peru, Chile, Colombia, Brazil, Venezuela and Argentina.

See also