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 and Latin America.

Telefónica has one of the most international profiles in the sector with 76% of its business outside its home market and a reference point in the Spanish and Portuguese speaking market.

In Latin America, Telefónica gives service to more than 211.9 million customers as of the end of December 2012 becoming the leader operator in Brazil, Argentina, Chile and Peru and has substantial operations in Colombia, Costa Rica, 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 103.1 million customers as of the end of December 2012.

Telefónica stands in seventh position in the sector Telco worldwide in terms of market capitalisation the 1st as an European integrated operator and in eighteenth position in the Eurostoxx 50 ranking, composed of the major companies in Europe (December 31st 2012). Telefónica is listed on the main Spanish and foreign stock markets and has 1.5 million direct shareholders according to separate records in favour of individuals and corporations.

As of December 2012, Telefónica’s total number of customers amounted to 315.7 millions.

View details of About Telefónica.

Accesses

Unaudited figures (thousands)

	December
	2012	2011	% Chg
Notes: (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. Since the first quarter of 2012, fixed telephony (2) Fixed telephony accesses include the reclassification in the fourth quarter of 2012 in Argentina of 157 thousand "fixed wireless" accesses previously recognized as mobile accesses of the contract segment. (3) ADSL, satellite, optical fiber, cable modem and broadband circuits. (4) Retail circuits other than broadband. (5) First quarter of 2012 includes the disconnection of 2.0 million inactive accesses in Spain. (6) First quarter of 2012 includes the disconnection of 1.2 million inactive accesses in Spain. Additionally, 360 thousand inactive accesses were disconnected in Chile in the third quarter of 2011. In Brazil, 1.0 million inactive accesses were disconnecte (7) First quarter of 2012 includes the disconnection of 800 thousand inactive accesses in Spain. (8) Includes ULL rented by T. Germany and T. UK. (9) Circuits for other operators. Includes Wholesale Line Rental (WLR) in Spain.
Final Clients Accesses	310,010.8	301,311.8	2.9
Fixed telephony accesses (1) (2)	40,002.6	40,119.2	(0.3)
Internet and data accesses	19,402.6	19,134.2	1.4
Narrowband	653.2	909.2	(28.2)
Broadband (3)	18,596.2	18,066.3	2.9
Other (4)	153.1	158.7	(3.5)
Mobile accesses (5)	247,269.5	238,748.6	3.6
Prepay (6)	165,759.7	162,246.9	2.2
Contract (2) (7)	81,509.8	76,501.7	6.5
Pay TV	3,336.2	3,309.9	0.8
Wholesale Accesses	5,731.3	5,296.0	8.2
Unbundled loops	3,308.8	2,928.7	13.0
Shared ULL	183.5	205.0	(10.5)
Full ULL	3,125.3	2,723.7	14.7
Wholesale ADSL (8)	800.6	849.3	(5.7)
Other (9)	1,621.8	1,518.0	6.8
Total Accesses	315,742.1	306,607.8	3.0

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

Mobile Accesses

Unaudited figures (thousands)

	December
	2012	2011	% Chg
Notes: (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. Since the first quarter of 2012, fixed telephony (2) Fixed telephony accesses include the reclassification in the fourth quarter of 2012 in Argentina of 157 thousand "fixed wireless" accesses previously recognized as mobile accesses of the contract segment. (3) ADSL, satellite, optical fiber, cable modem and broadband circuits. (4) Retail circuits other than broadband. (5) First quarter of 2012 includes the disconnection of 2.0 million inactive accesses in Spain. (6) First quarter of 2012 includes the disconnection of 1.2 million inactive accesses in Spain. Additionally, 360 thousand inactive accesses were disconnected in Chile in the third quarter of 2011. In Brazil, 1.0 million inactive accesses were disconnecte (7) First quarter of 2012 includes the disconnection of 800 thousand inactive accesses in Spain. (8) Includes ULL rented by T. Germany and T. UK. (9) Circuits for other operators. Includes Wholesale Line Rental (WLR) in Spain.
Prepay percentage (%)	67.0%	68.0%	(0.9 p.p.)
Contract percentage (%)	33.0%	32.0%	0.9 p.p.
MBB accesses ('000)	52,774.9	38.218.1	38.1%
MBB penetration (%)	21%	16%	5.3 p.p.
Smartphone penetration (%)	19%	13%	6.2 p.p.

Selected financial data

Unaudited figures (Euros in millions)

	January - December
	2012	% Chg
Notes: - For the basic earnings per share calculation purposes, the weighted average number of ordinary shares outstanding during the period has been obtained applying IAS rule 33 "Earnings per Share". Thereby, the weighted average number of shares held as trea - In accordance with IAS 33, "Earnings per Share", the weighted average number of ordinary shares outstanding during the period have been restated for 2011 and 2012 to reflect the bonus share issue due to the scrip dividend. As a consequence basic earning - 2011 and 2012 reported figures include the hyperinflationary adjustments in Venezuela in both years. - 2012 reported figures include the results of Atento until November 30th.
Revenues	62,356	(0.8)
Operating income before D&A (OIBDA)	21,231	5.1
Operating income (OI)	10,798	7.3
Income before taxes	5,864	(9.6)
Net income	3,928	(27.3)
Basic earnings per share (euros)	0.87	(25.9)
Weighted average number of ordinary shares outstanding during the period (millions)	4,496	(1.9)