Corporate profile

Telefonica's global profile

Telefónica is one of the world leaders integrated operator in the telecommunication sector, providing communication, information and entertainment solutions, with presence in Europe, Africa and Latin America.

Telefónica has one of the most international profiles in the sector with more than 60% of its business outside its home market and a reference point in the Spanish and Portuguese speaking market.

In Spain, Telefónica has over 80 years experience since its constitution in 1924, providing services to more than 47.0 million customers at December 2011. In Latin America, Telefónica gives service to more than 201.4 million customers as of the end of December 2011 becoming the leader operator in Brazil, Argentina, Chile and Peru and has substantial operations in Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama, Puerto Rico, Uruguay and Venezuela. In Europe, on top of the Spanish operations, the Company has operating companies in the United Kingdom, Ireland, Germany, Czech Republic and Slovakia, providing services to more than 58.0 million customers as of the end of December 2011.

Telefónica stands in seventh position in the sector Telco worldwide in terms of market capitalisation the 1st as an European integrated operator and in seventh position in the Eurostoxx 50 ranking, composed of the major companies in Europe (December 31st 2011). Telefónica is listed on the main Spanish and foreign stock markets and has over 1.5 million direct shareholders according to separate records in favour of individuals and corporations.

As of December 2011, Telefónica’s total number of customers amounted to 306.6 millions.

View details of About Telefónica.

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)