About Telefónica España
With more than 85 years of experience since it was founded in 1924, Telefónica centres its activities in Spain mainly on the fixed and mobile telephony businesses, with broadband as the key tool for the development of both, and on IT services and solutions. The company is a driver of progress of Spanish society, accounting for an average of nearly 2% of Spanish GDP. Telefónica España is Spain’s leading national operator by accesses, with over 47 million including voice, data, TV and internet accesses.
The most striking aspects of the Telefónica España results in January-June 2013 are as follows:
Telefónica España's second quarter results of 2013 confirm the gradual recovery of the business, supported on the consolidation of the benefits from the transformation process, which is allowing the Company to strengthen its competitive positioning and to improve the year-on-year performance of revenues, and at the same time to improve efficiency and obtain a high and sustainable profitability level.
During the quarter, in a market environment with a highly intense competition in which convergence consolidated as the key lever in the sector, there was increased rationality in the mobile business, with commercial launches more focused on rates than on handset subsidies.
Against this backdrop, “Movistar Fusión” remained as the growth engine for Telefónica España's commercial activity, reaching 2.2 million customers at the end of June 2013, including “Movistar Fusión Cero” customers.
Noteworthy was the continued improvement in the capture of new customers, which generate new revenues for the Company. Thus, 56% of the gross additions for “Fusión” and “Fusión Cero” in the quarter corresponded to new customers or customers adding new services, which is 9 percentage points more than in the previous quarter. The number of additional mobile lines contracted continued to increase at a healthy pace. Furthermore, it should be highlighted that despite the launch of “Fusión Cero” customers continued to prefer the higher value offers, as more than 70% of convergent gross additions in the quarter corresponded to the “Movistar Fusión” modality of 49.90 euros or above.
Fibre accesses maintained a strong commercial traction, fostered by "Movistar Fusión” with a net gain in the quarter of 59 thousand accesses, in line with the previous quarter, totalling 431 thousand accesses as of June.
The success of the convergent offer “Movistar Fusión”, combined with the good market acceptance of the new tariffs launched at the beginning of April for mobile-only customers, “Movistar Cero” and "Movistar Total”, and along with the efforts made to improve service quality, have driven not only the capture of new customers but have also contributed to increase loyalty, as reflected in the higher customer satisfaction level and the sequential decrease in churn across services in fixed and mobile business.
As such, the acceptance of the new mobile-only tariffs translated into an improvement of the net loss of mobile contract (140 thousand accesses in the quarter) which was almost half the figure recorded in the first quarter of the year.
Total revenues (fixed + mobile) excluding handset sales, the main focus of the Company in a market that is trending towards convergence with an increasing weight of “Movistar Fusión” in the customer base, continued to gradually improve its year-on-year performance, mainly driven by the higher commercial traction of “Movistar Fusión”, whose revenue ”break-even” was reached last January.
At the end of June, Telefónica España managed a total of 42.3 million total accesses.
Luis Miguel Gilpérez
CEO, Telefónica España
Luis Miguel Gilpérez is 51 years old and holds a degree in industrial engineering, as well as an MA in business administration and planning. He began his career in an insurance company, working for six years in different departments of the business.
In 1981, he joined the Telefónica Group, where he has spent the rest of his professional life. He has focused especially on mobile telephony, an area where he has been working in an executive role since 1987. From 1993, when Telefónica Móviles was set up, he was placed in charge of the commercial activities of this service. Since then, he has filled different managerial positions in virtually all the areas of the company.
Between 2006 and the end of September 2010, he was the area head of the Mobile Business in Telefónica Latinoamérica. He then took over Telefónica Operations in Brazil until, in September 2011, he was appointed CEO of Telefónica España.