Telefónica | About Telefónica | Key figures

The most striking aspects of the Telefónica Group results at December 2011 are as follows:

In 2011, the Company posted record levels of free cash flow generation of 9,270 million euros, with a strong year-on-year growth of 9.5%, compatible with increased investment amid a difficult operating environment.
Telefónica surpassed the 306 million accesses mark at the end of 2011, setting the basis for the Company's future revenue growth:
- The commercial repositioning in the second half led to a significant increase in activity in the last months of the year and to a 7% year-on-year growth in accesses.
- Telefónica Latinoamérica, with a 10% year-on-year organic growth in accesses, consolidated its position as the main contributor to the expansion of Telefónica's accesses.
- Mobile net additions reached a record of 7.8 million accesses in the quarter, while mobile broadband accesses increased 1.6 times versus 2010 to 38 million. The contract segment already represents a third of the Group's total mobile accesses.
Consolidated revenue totalled 62,837 million euros in 2011, with a year-on-year growth of 3.5%, and of 4.8% excluding the impact of mobile termination rates cuts:
- Telefónica Latinoamérica was once again the Company’s growth driver, accounting for 47% of total revenues.
- Mobile data revenue grew 19.0% in organic terms year-on-year, accounting for more than 31% of mobile service revenue. This increase was driven by the rapid expansion of non-SMS data revenues, which now account for over 52% of total data revenues.
The Company kept a high profitability, with an underlying OIBDA margin of 36.1% despite the increased commercial activity:
- Underlying OIBDA totalled 22,697 million euros.
- Telefónica Latinoamérica continued to increase its contribution to the Group's underlying OIBDA, accounting for 48% of the consolidated figure in 2011 (+4 percentage points versus 2010).
- The negative impact from regulation dragged 188 million euros to 2011 OIBDA.
The Company met its 2011 revenues, OIBDA margin and CapEx targets. Telefónica announces its guidance for 2012 and reiterates the shareholder remuneration policy announced in December.
- Financial Guidance:
  - Net financial debt / OIBDA < 2.35x (equivalent to previous (Net Debt+Commitments) / OIBDA < 2.5x).
  - Shareholder remuneration of 1.50 euros per share, including the payment of a cash dividend of 1.30 euros per share and a share buyback for the remaining amount.
- Operating Guidance (considering constant perimeter):
  - Revenue growth >1% at current exchange rates.
  - Lower OIBDA margin decline than in 2011.
  - Similar CapEx/sales as in 2011.

2012 operating guidance criteria: Assumes current exchange rates (2012 average FX of € 1: US: 1.32x; € 1: BRL 2.30; € 1: £ 0.85) and constant perimeter of consolidation. At the OIBDA level, excludes write-offs, capital gains/losses from companies disposals and significant exceptionals. CapEx excludes spectrum licenses.

2011 Bases for 2012 targets:

Net financial debt / OIBDA: 2.46 x.
Revenues: 62,837 million euros.
OIBDA margin: 36.1%.
CapEx/Sales ex spectrum: 14.2%.

Accesses

Unaudited figures (thousands)

	December
	2011	2010	% Chg
Notes: '- Year-on year changes are affected by the inclusion of the customers of HanseNet since March 2010 and the exclusion of the customers of Manx since July 1st, 2010. (1) PSTN (including Public Use Telephony) x1; ISDN Basic access x1; ISDN Primary access; 2/6 Access x30. Company’s accesses for internal use and total fixed wireless included. Includes VoIP and Naked ADSL. (2) ADSL, satellite, optical fibre, cable modem and broadband circuits. (3) Retail circuits other than broadband. (4) Includes 153 thousand clients of TVA from June 2011. (5) Includes ULL rented by T. Germany and T. UK. (6) Circuits for other operators. Includes Wholesale Line Rental (WLR) in Spain.
Final Clients Accesses	301,311.8	282,994.9	6.5
Fixed telephony accesses (1)	40,119.2	41,355.7	(3.0)
Internet and data accesses	19,134.2	18,611.4	2.8
Narrowband	909.2	1,314.1	(30.8)
Broadband (2)	18,066.3	17,129.6	5.5
Other (3)	158.7	167.8	(5.4)
Mobile accesses	238,748.6	220,240.5	8.4
Prepay	162,246.9	151,273.9	7.3
Contract	76,501.7	68,966.6	10.9
Pay TV (4)	3,309.9	2,787.4	18.7
Wholesale Accesses	5,296.0	4,637.4	14.2
Unbundled loops	2,928.7	2,529.2	15.8
Shared ULL	205.0	264.0	(22.3)
Full ULL	2,723.7	2,265.3	20.2
Wholesale ADSL (5)	849.3	687.4	23.5
Other (6)	1,518.0	1,420.7	6.8
Total Accesses	306,607.8	287,632.3	6.6

These clients are distributed among the operations in Europe, Latinamerica.

Selected financial data

Unaudited figures (Euros in millions)

	January - December
	2011	% Chg
Notes: '-HanseNet and Jajah have been included in T. Europe's consolidation perimeter since mid February 2010 and January 2010, respectively. The perimeter of consolidation of T. España includes Tuenti since August of 2010 and Acens Technologies since August 2011. The perimeter of consolidation of T. Latinoamérica includes 100% of Vivo since October 2010. '- 2011 T. Latinoamérica results include from the second quarter of the year and retroactively from January 1st, 2011, the full consolidation of TVA, company that was already part of Telefónica’s perimeter since the fourth quarter of 2007. '- Telefónica International Wholesale Services (TIWS) and Telefónica North America (TNA) have been included in the consolidation perimeter of Telefónica Europe since 1st January 2011 (previously in the consolidation perimeter of Telefónica Latinoamérica). As a result, the results of Telefónica Europe and Telefónica Latinoamérica have been restated for the fiscal year 2010, to reflect the above mentioned new organization. Telefónica consolidated results for 2010 are not affected. '- Figures in million euros. 2011 figures were affected by the provision for workforce restructuring plan in Spain (-2,671; -1,870 net of taxes), the positive impact from the partial reduction of our economic exposure to Portugal Telecom (+184), Telco, S.p.A.'s writedown of its stake in Telecom Italia and operating synergies achieved (-662, -481 net of taxes), difference in market value of BBVA stake (-80 in net financial income; -56 net of taxes), tax asset reassessment (-30), deferred tax liability related with PPA on Vivo’s acquisition (+1,288, +952 net of taxes and minority interests) and PPAs (-1,119; -790 net of taxes and minorities). 2010 figures were affected by the positive impact from the revaluation of the previously-held stake in Vivo at its fair value at the date of acquisition of the 50% in Brasilcel owned by Portugal Telecom (+3,797; +3,476 net of tax), non-recurrent restructuring expenses (-1,262; -862 net of taxes), Manx Telecom’s capital gain (+61), write-down of T. Capital (-6), difference in market value of BBVA stake (-191 in net financial income; -133 net of taxes), tax asset reassessment in Colombia (-450 net of minorities), PPAs (-1,142; -847 net of taxes and minorities) and other adjustments (-55). '- For the basic earnings per share calculation purposes, the weighted average number of ordinary shares outstanding during the period have been obtained applying IAS rule 33 "Earnings per share". Thereby, there are not been taken into account as outstanding shares the weighted average number of shares held as treasury stock during the period. '- 2010 and 2011 reported figures include the hyperinflationary adjustments in Venezuela in both years.
Revenues	62,837	3.5
Operating income before D&A (OIBDA)	20,210	(21.6)
Operating income (OI)	10,064	(38.9)
Income before taxes	6,488	(53.3)
Net income	5,403	(46.9)
Basic earnings per share (euros)	1.2	(46.7)
Weighted average number of ordinary shares outstanding during the period (millions)	4,511	(0.2)

As of September 2011, Telefónica has published solid financial results.

More information

Results

Accesses

Selected financial data