Telefonica Reports Solid Growth of 5.6% in Operating Revenues and
6.9% in EBITDA
* The annual impact of the Headcount Reduction Programme, which the company has
charged in full to 1H accounts, leaves net profit at 1,254.2 million euros
(-12%). Stripping out this effect, net profit growth would reach 15.9%.
MADRID, July 28 /PRNewswire-FirstCall/ -- Telefonica's (NYSE:TEF) 1H04 results
evidence the robust growth of its operations since the equivalent period last
year (operating revenues +5.6%, EBITDA +6.9%), hand in hand with rising
profitability (EBITDA margin 44.5% vs 43.9%), and free cash flow generation
(EBITDA-CapEx) 13.4% up vs January-June last year to 5,016.9 million euros.
The Group grew its total customer base by 12.6% to 103.8 million at the 1H04
close compared to 92.2 million and 101.7 million twelve and three months' back
respectively. Managed cellular business customers totalled 55.8 million at the
end of June, representing net adds of over 1.4 million in the second quarter
and 9.7 million in the past year.
The number of ADSL connections rose by 1.7 million net versus June 2003 to 3.7
million. The 2 million connections operative in Spain (+58,2% vs June 2003)
equate to an estimated 74% share of the overall broadband market, while
Telefonica Group's 1,6 million retail clients give it 58% of this ADSL segment. In Latin America, ADSL connections now number over one million (0.6 million one
year back), of which 0.6 million fall to Telesp (+58% year-on- year).
The Group's consolidated operating revenues reached 14,324.5 million euros at
the 1H04 close, an increase of 5.6% on the same period in 2003. The advance
extended to all business lines excepting content and media, affected by the
exit from consolidation of Antena3 TV. On a comparable currency and group
structure basis, revenues grew by 9.4% against 10.3% to March.
Telefonica de Espana operating revenues rose 2.2% year-on-year to 5,399.4
million euros at the 1H04 close. Worth noting is the clear spurt in revenue
growth in the second-quarter period, which owes in part to the rise in the
monthly fee effective as of 1 April.
The mobile business took in operating revenues of 5,458.1 million euros in the
first half of 2004, 14.1% up on the figure reported for January-June last year. Meantime, Telefonica Latinoamerica raised its revenues 4.6% in current euros
(3,276.1 million euros), increasing 10.3% in constant terms. This, it bears
mention, is the fourth consecutive quarter that Telefonica Latinoamerica has
grown its business in current euros.
A geographical breakdown shows Spain representing 61.6% of the Group's
consolidated revenues at the end of the second quarter, though its weight had
dropped 1.3 p.p. vs June 2003 with the slack taken up by Brazil (17.6% vs 16%). Latin America raised its share of total revenues by 0.9 p.p. to 33.1%.
Telefonica Group ended the first six months with operating expenses at 8,308.6
million euros, an increase of 4.3% vs 1H03 which is 0.7 p.p. down on the growth
rate to 1Q04. However the period's more negative exchange rate impact (-2.7
p.p. in January-June against -2 p.p. in January-March) translates as 7% growth
in constant terms (equalling the increase to March). On a comparable exchange
rate basis and excluding changes in the consolidation perimeter, the costs
would have risen 9.6% (+9.7% in the first quarter) due to the cellular and
Latin American business.
On the back of these performances in revenues and costs, consolidated EBITDA
rose 6.9% from the same period last year to 6,367.3 million euros, thanks to
the growth contributed by Telefonica de Espana and the mobile phone business
(+6.2% in both cases). Stripping out the impact of exchange rates and changes
in consolidation, the EBITDA advance comes to 8.2%. Exchange rates trimmed 1.2
p.p. off 1H04 growth compared to -0.1 p.p. in the first quarter.
The Group's operating profitability, as measured by the EBITDA margin, ended
the 1H04 period at 44.5% after year-on-year growth of 0.5 p.p.
Telefonica de Espana was again the largest contributor to EBITDA in absolute
and relative terms (39.1% of the total). Its 2,487,5 million EBITDA to June was
6.2% up vs January-June 2003, pulling ahead of the year-on-year growth rate of
the first quarter (+4.2%). Mobile telephony business, the second largest EBITDA
contributor (36.3% of the total), added 2,309.2 million euros in 1H04. Growth
of 6.2% versus June 2003 drew heavily on Telefonica Moviles Espana (+9.7%). Telefonica Latinoamerica (23% of the total) grew its EBITDA 2.8% year-on-year
in current euros (to 1,464 million euros), which translates into an increase of
7.8% in constant euros (+7.2% to March).
By geographical areas, Spain contributed 71.7% of the Group's consolidated
EBITDA as of 30 June 2004 (71.1% one year before) and Latin America 27.6%
(29.7% in June 2003).
Operating profit expanded 21.4% vs the 1H03 to 3,421 million euros. On a
comparable currency and group structure basis, growth was 21% to June vs 25.4%
to March.
Losses from companies carried by the equity method fell 80.3% to -26.2 million
euros (-132.5 million euros in June 2003). This vast improvement owed primarily
to the exit from consolidation of Via Digital (entry of Sogecable in July 2003)
and Audiovisual Sport, the lower losses attributable to Medi Telecom, IPSE 2000
and Infonet, and the better earnings performance of Pearson.
Total net financial expenses came to 486.9 million euros vs the 296.5 million
of January-June 2003. Stripping out the positive impacts of Argentine peso
appreciation in both semesters, and the pay-off of dollar-denominated debt in
the first half of 2003, like-for-like figures (488.8 million euros in 1H04 vs
802.4 million euros in 1H03) show a fall of 313.6 million euros (- 39.1%). These lower financial costs draw on a 12.2% reduction in average net debt and a
decrease in the average interest paid thanks to falling interest rates in euros
and Brazilian reals.
The Group's net debt amounted to 18,776.3 million euros in June 2004. This was
459 million euros down on the consolidated figure for end 2003 (19,235.3
million) due largely to the cash flow left over after financial investments and
dividends (544.7 million euros). Note also the 16.5 million euros added by
exchange losses on non-euro debt (owing mainly to dollar appreciation vs the
European currency), plus another 69.2 million euros for changes in the
consolidation perimeter and other impacts on financial accounts.
Extraordinary losses summed 726.2 million euros to June against the 39.8
million euro gains reported in the first six months of 2003. These red numbers
trace mainly to provisions made for the 2,362 applications for inclusion in the
2004 phase of the 2003-07 headcount reduction programme, whose final total cost
was 653.3 million euros. Remember part of this provision (185.7 million euros)
was already made in 1Q04 in respect of 672 redundancies. Other extraordinary
expenses booked in 1H04 derive from the restructuring at Grupo Terra Lycos
(-34.4 million euros).
Telefonica Group obtained a 1H04 net profit of 1,254.2 million, a 12% decrease
on the first half of 2003. However, excluding the charge booked for the
full-year 2004 impact of the headcount reduction programme 2003-07, the final
figure would stand 15.9% higher at 1,652.2 million euros.
Group CapEx in the first six months amounted to 1,350.4 million euros,
representing a year-on-year decrease of 11.9%. Note, however, that investment
has a strong cyclical component so the numbers to date cannot be extrapolated
to the full-year period.
FIXED LINE BUSINESS TELEFONICA DE ESPANA GROUP
During the first half of 2004, the Telefonica de Espana Group achieved growth
in both revenues and EBITDA of 2.2% and 6.2% respectively, compared to the same
period of 2003, presenting a clear acceleration of the rates registered in the
first quarter of the year (1.7% and 4.2%, respectively). This strong
performance was the result of the Group's increased commercial efforts and the
progress that is being made to enhance the efficiency and profitability of
operations. These initiatives are in line with the strategic priority of
transforming the Telefonica de Espana Group with a clear leadership of the
broadband market, based on a more agile and flexible company model, with a
greater commercial focus.
Telefonica de Espana revenues totaled 5,399.4 million euros at June 30, 2004,
representing a 2.2% growth in comparison with the same period of the previous
year and 0.5 percentage points higher than the 1.7% growth recorded during the
first quarter of 2004.
* The aggregate revenues from Traditional Services of 3,524.9 million
euros at June end were 3.8% lower than the figure for the same period
of 2003. Despite the appreciable decrease in the first half as a
whole, the rate of decline clearly slowed in the second quarter -- it
was 2.9% -- due mainly to the impact of the 4.35% rise in the monthly
fee which came into effect in April. * The Broadband Services recorded aggregate revenues of 530.5 million
euros in the first half of the year, representing year-on-year growth
of 33%. The important milestone of having reached 2 million ADSL lines
in service took place in the second quarter of 2004. Specifically, at
the end of June the plant in service amounted to 2,043,728 ADSL
connections. The ADSL net gain in the second quarter was 196,415
accesses, representing an increase of 24.7% on the same period of
2003. * The Data and Solutions Business recorded growth of 7.1% in the first
half and totaled 474.4 million euros at the end of June. The main item
of these revenues, comprising 53.6% of Data and Solutions revenues,
relates to the planning and operation of virtual private networks,
where its limited revenue growth of 0.5% is the result of the combined
effects of the increase in plant and the migration of data products to
IP technology. * Wholesale Business contributed with 645.6 million euros to consolidated
revenues, a 7.6% increase in relation to the same period of the
previous year. The 28.7% of these revenues came from domestic
interconnection services, which were increased by 5.7% due, basically,
to the 33.0% growth in the fixed-to-mobile interconnection revenues
and a slight decrease of fixed-to-fixed interconnection revenues. In
addition, it is important to highlight the substantial 48.0% growth in
the wholesale ADSL service with revenues totaling 110.7 million euros.
Telefonica de Espana Group's operating expenses experienced a year on year
decrease of 0.4% to 2,971.3 million euros. Among other items comprising
operating expenses, it should be noted the 9.8% reduction in personnel expenses
in comparison with the same period of 2003, which amounted to a total of
1,061.6 million euros, as a result of the staff joining the 2003-2007
Redundancy Program. Telefonica de Espana parent company headcount reaches
35,825 employees at June end, representing a reduction of 1,234 employees since
the beginning of the year. Up to the end of June 2004, 1,356 employees had left
Telefonica de Espana under the Redundancy Program. The remaining employees
included in the total figure of 2,310 redundancies accepted by the Company in
2004 will leave Telefonica de Espana in the remaining months of the year.
Contrary to personnel expenses evolution, the Company's increased commercial
activities aimed at revenue growth led to a 14.2% rise in external services &
others which totaled 578 million euros.
Telefonica de Espana Group EBITDA amounted to 2,487.5 million euros at, up 6,2%
year on year. The Group's EBITDA margin reached 46.1% (0.3 percentage points
higher than in the first quarter of 2004 and 1.7 percentage points higher than
in the first half of 2003).
Telefonica de Espana Group's operating profit amounted to 1,249.9 million euros
in the first half of 2004, up by 24.3% on that of the same period of the
previous year as a result of the positive evolution of the EBITDA and the 7.4%
decrease in amortization and depreciation.
CapEx by Telefonica de Espana Group dropped by 19.4% to 527.6 million euros to
reach a CapEx over Revenues ratio of 9.8%, reflecting Telefonica de Espana's
aim of taking forward the transformation process into a and less
capital-intensive company.
Operating free cash flow, defined as EBITDA minus CapEx, amounted to 1,959.9
million euros, up by 16.1% on the same period of 2003.
FIXED LINE BUSINESS TELEFONICA LATINOAMERICA GROUP
Results at Telefonica Latinoamerica continued to record positive growth for the
fourth consecutive quarter in current euros, both in terms of operating
revenues and EBITDA. In the second quarter of 2004 the Latin American
currencies fell slightly against the dollar (with the exception of the
Argentinean peso, which remained stable), although this was largely offset by
the rise in the average dollar/euro exchange rate. However, on a year-on- year
basis, these currencies continued to record levels of depreciation against the
dollar that were higher than those of the first quarter of 2004, implying an
increase in the negative impact of exchange rates on performance during the
first half.
Operating revenues amounted to 3,276.1 million euros, representing year-
on-year growth of 4.6%, which in constant euros becomes 10.3%, keeping the
growth rate recorded in the first quarter of 2004. The evolution of the
revenues in constant euros reflects the behavior of revenues at: * Telesp (up 20% in local currency), as a result of the positive progress
made by the traditional business (up 18.6%). * TASA (up 7.9% in local currency), due to the good performance of the
plant and traffic operating variables in comparison with 2003, despite
the tariff freeze in force since January 2002, which made it possible
to achieve growth of 6% in revenues from traditional services
* CTC recorded a fall in revenues of 9.4% in local currency, with a slow
down in the decreasing rate recorded in the first quarter (-10.2%). * TdP, with a 13.4% increase year on year in its plant of equivalent
lines, recorded revenue growth of 0.9% in local currency, since the
1.6% fall in Traditional Business revenues was offset by the 62.8%
rise in Internet revenues. * Telefonica Empresas America and TIWS, where the positive trend of the
previous quarter continued with growth of 17.2% and 19.2%,
respectively, in constant euros.
The total operating expenses of Telefonica Latinoamerica stood at 1,845.7
million euros at June 30, 2004, which was 5% more in current euros than in the
same period of 2003. In constant euros, these expenses rose by 11.4% (compared
with 13.3% in the first quarter) as a result of the increase in expenses in
local currency at the fixed-line operators, except for CTC.
EBITDA at the end of the first half stood at 1,464 million euros, representing
growth of 2.8% which rises to 7.8% in constant euros (7.2% in the first
quarter), achieving an EBITDA margin of 45% in the second quarter, compared to
44.3% in the first one. The decrease in amortization and depreciation (down by
1.5% in constant euros) made it possible to achieve an operating profit of
639.4 million euros, representing an improvement of 22.1% in constant euros.
In the first half, Telefonica Latinoamerica recorded extraordinary net income
of 10.4 million euros, of which 8.9 million euros arose in the first quarter,
compared with the previous year's figure of -47 million euros. In 2004 this
item includes lower extraordinary expenses at the operators relating to
workforce restructuring and the positive impact of CTC's sale of Publiguias.
The financial results stood at -157.1 million euros, compared with the previous
year's figure of +129.1 million euros, which was the result of the exchange
gains recorded by the Argentinean companies in 2003 (more than 190 million
euros), as well as the profit recorded in 2003 as a result of the cancellation
of the debt denominated in dollars (approximately 250 million euros). Excluding
the impact of the exchange rate differences, Telefonica Latinoamerica net
financial results were down by 64.1% as a result of the lower interest expenses
connected with the lower volume of debt and lower interest rates in Brazil and
in the Euro zone.
These results, together with a tax provision of 59.5 million euros, allowed to
record a net income of 322.5 million euros, with a year-on-year increase of
11.9%.
CapEx at Telefonica Latinoamerica amounted to 237.2 million euros, which was
12.1% less than in 2003 (-2.9% year on year in constant euros). This evolution
reflects the containment of investment at the fixed-line operators, at
Telefonica Empresas and TIWS.
The operating free cashflow (EBITDA-CapEx) generated at Telefonica
Latinoamerica in the first half of 2004 amounted to 1,226.8 million euros, with
year-on-year growth of 6.3% (10.3% in constant euros).
GRUPO TELEFONICA MOVILES Telefonica MOVILES obtained net income of 889.1 million euros in the first six
months of 2004, an increase of 14.2% compared to the first half of 2003.
Commercial activity remained strong in the second quarter of 2004 in the main
areas of operation, extending the trend of the first quarter of 2004. The Group
operators maintained their competitive positioning despite stiffer competition
from their main rivals.
Including the customers from BellSouth's Latin American operators(1), whose
acquisition was agreed in March, Telefonica MOVILES' would have over 68 million
managed customers, 47.5 million of which corresponding to Latin America.
Y-o-y growth of 14.1% in operating revenues to 5,287.9 million euros in the
first half of 2004. Assuming constant exchange rates and excluding the impact
of TCO's contribution to the consolidated results during the first four months
of 2004 and changes in the consolidation perimeter, revenues would have grown
14.7% in the first half of 2003 y-o-y. By companies, Telefonica MOVILES Espana
obtained operating revenues of 3,904 million euros in the first half of 2004
(+12.5% vs. the first half of 2003). Operating revenues from consolidated Latin
American operators showed absolute growth in euros of 19.3% and accounted for
26% of Group revenues in the first half of 2004. Excluding the impact of
exchange rates and TCO's contribution to the consolidated results during the
first four months of 2004, these revenues would have shown growth of 21.5% vs. the first half of 2003.
Increase of 6.8% in consolidated EBITDA vs. the first half of 2003 to 2,270.8
million euros. Excluding the impact of exchange rates, TCO's contribution to
the consolidated results during the first four months of 2004 and changes in
the Group's consolidation perimeter, consolidated EBITDA would have grown 4.6%
vs. the first half of 2003. Telefonica MOVILES Espana obtained EBITDA of
2,058.7 million euros in the first half of 2004, 9.7% higher than in the first
half of 2003, leaving an EBITDA margin of 52.7%. EBITDA for the Group's
consolidated Latin American subsidiaries in euros fell by 15.4% vs. the first
half of 2003, reflecting the Company's strategy to capture the growth potential
existing in our markets, despite the short term impact of commercial efforts in
EBITDA margins. Assuming constant exchange rates and excluding TCO's
contribution to the consolidated results during the first four months of 2004,
these companies' EBITDA would have declined 30.1% vs. the first half of 2003.
As for consolidated CapEx, it amounted to 483.8 million euros in the first half
of 2004, a 4% y-o-y increase, fuelled by the rollout of Telefonica MOVILES
Espana's UMTS network and the GSM network in Argentina.
OTHER BUSINESSES DIRECTORIES BUSINESS
During the first half of 2004 the TPI Group's operating revenues increased by
12.7% to 215.7 million euros, despite the negative performance of local
currencies against the euro in Latin America, in particular the Peruvian sol. The Group's EBITDA amounted to 59.3 million euros, 39.4% higher than the figure
for the same period of 2003. These results are explained by: * The progress made, within TPI Espana, by both the advertising revenues,
which rose by 11.1% to 140.7 million euros, and the telephony traffic
business line, whose revenues soared by more than three times fold
those of the previous year, reaching 20.6 million euros. * The good performance of advertising revenues at the Chilean subsidiary
(Publiguias), which in local currency rose by 7.5%. * The increase in total revenues at TPI Peru of 5.8% in local currency,
helped by the publication of the Lima book, and the significant
improvement in EBITDA, which rose by 35.1% in local currency, due to
the efforts deployed in reducing bad debt provisions. * The decrease in total revenues of TPI Brazil of 19.5% in local
currency, due to a more restrictive contract policy aiming at
improving bad debt levels.
TPI Espana, that includes the revenues of Goodman Business Press, contributed
79% of the Group's revenues, and made a positive contribution to the Group's
EBITDA of 54.8 million euros (92.4% of total). TPI Espana revenues rose by
19.7% to 170.4 million euros, triggered mainly by four main factors: the
organic growth, like for like, of 4.3% and 7.9% experienced by the Yellow Pages
directories and the White Pages directories, respectively; the publication of
an additional Yellow Pages directory in comparison with the same period in the
previous year; the variations in the publication calendar of guides; and the
strong performance, within TPI Spain, achieved by the telephony service 11888,
whose revenues climbed to 20.6 million euros vs. 6.6 million euros in the same
period of 2003 (+214.1%).
Latin America contributed the remaining 21% of revenues and 8% of EBITDA, with
TPI Peru being the biggest Latin American contributor to both revenues and
EBITDA thanks to the publication of the Lima directory in January 2004. During
this period, TPI Peru obtained revenues of 26.3 million euros and contributed
10.5 million euros to the Group's consolidated EBITDA.
In turn, the directories business of the Telefonica Group, which includes the
Argentinean company Telinver, recorded during the first half of 2004 an
increase in total revenues of 12.5% up to 220,2 million euros compared with the
first half of 2003, due primarily to an improvement in the economic situation
in Argentina. EBITDA amounted 59.9 million euros, representing a year-on-year
increase of 39.9%.
OTHER BUSINESSES TERRA LYCOS GROUP
In the first half of 2004, the operating revenues obtained by Terra Lycos
amounted 273.9 million euros, representing an increase of 8.3% over the same
period of the previous year. The strategic Alliance with Telefonica has
continued to progress during the second quarter, reaching an accumulated figure
of 59.2 million euros in June compared with 43.5 million euros obtained in the
same period of 2003.
The revenues breakdown by business line until June, which remained stable
compared with the first quarter, was as follows: 42.5% Access revenues (+11.9%
y-o-y), 25% Advertising and Online revenues (+14.6% y-o-y), 22.4% Communication
Services revenues (-1% y-o-y) and the remaining 10.1% Corporate Services
revenues (+2.4% y-o-y).
Regarding the geographical revenues breakdown, Spain, Brazil and USA
subsidiaries weighted 89% of total revenues, with a significant contribution
from the strategic Alliance with Telefonica both in Spain and Brazil.
During this semester, Spain experienced a year over year revenues growth of
28.9% to 115.5 million euros, representing 42% of total revenues (up from 35.3%
of total revenues in the same period of 2003). Brazil revenues stood at 70.2
million revenues, a decrease of 2.4% over the first half of 2003, representing
25.5% of total revenues (down 2.8 percentage points y-o-y), highlighting its
leadership in the broadband market, with 538,889 connections. Moreover,
important companies such as VISA, Johnson & Johnson, Nike and Dell are among
the main advertisers within Terra Brazil's client portfolio. USA revenues,
including those of One Travel, amounted 58.1 million euros (+1.5% y- o-y),
representing 21.1% of total revenues (1.4 p.p less than in the same period of
2003). Most of the revenues obtained this semester came from advertising
revenues.
EBITDA for this first half of 2004 stood at 2.4 million euros, representing an
EBITDA margin of 0.9% (vs. -14.5% in June 2003), compared with the negative
36.6 million euros reached in the first quarter of 2003. The Alliance with
Telefonica registered coverage of the value committed for the whole year (78.5
million euros) of 43%.
Regarding its client base, Terra Lycos reached this first half of 2004 5.7
million paying subscribers (+58.6% over the same period of 2003). Access
clients account 1.8 million at the end of June 2004, of which 841,651 are
broadband clients (+76.3% y-o-y).
It should be mentioned that 68% of the company's total paying customers had
signed up for OBP products, consisting of either communication or portal
products (CSPs or OBPs). These clients have increased 86.5% in the last twelve
months, largely due to the new Alliance with Telefonica.
OTHER BUSINESSES ATENTO GROUP
From a financial point of view, Atento Group operating revenues for the first
half of 2004 amounted to 279.4 million euros, 15.5% more than in the same
period of the previous year. This evolution is explained by the greater
contribution of Atento Spain, which revenues grew year on year by 20.8%, and of
Atento Brazil, which revenues grew year on year by 17.2% due to commercial
achievements over the period. Excluding the negative exchange rate effect,
revenues would have increased by 19.6%. It is important to highlight that,
during the second quarter of 2004, y-o-y revenues growth rate accelerated
versus the first quarter of the year (+21.7% vs. 9.4%).
In terms of revenues structure, the contribution of clients outside the
Telefonica Group continues its upward trend, reaching 41% of revenues as of
June 2004 compared with 38% in December 2003, as a result of the commercial
progress.
As a result of this evolution of revenues and expenses, EBITDA for the first
half of the year stood at 40.9 million euros, 61.3% higher than the figure for
the same period of the previous year (71.6% excluding the forex effect). During
the second quarter, the year on year increase of EBITDA reached 83.8%. EBITDA
margin rose to 14.6%, 4.2 percentage points above that registered twelve months
ago. During the period April-June 2004, EBITDA margin stood at 14,8% (+5
percentage points vs. 2Q03). This margin places the Company among the most
profitable companies in the "Contact Center" sector.
The operating profit for the first half amounted to 21.4 million euros with a
significant improvement compared with the 2.1 million euros loss registered
during the same period in 2003, mainly due to the increase in EBITDA and the
29.4% y-o-y decrease in depreciation as a result of the degree of maturity
achieved in operations.
Net income for the first half amounted to 2.2 million euros, as compared with a
net loss of 14.9 million euros in the first six months of 2003. It is important
to note this is the first semester the Company has recorded a positive net
result.
Accumulated CapEx in June amounted to 8.2 million euros, 25.8% more than in the
first half of 2003, mainly due to the investments made by Atento Brazil to
attend new services and clients and the implementation of the new call center
in Chile (Vicuña) and Mexico (Puebla).
Finally, operating free cash flow (EBITDA-CapEx) reached 32.7 million euros
compared with the 18.8 million euros generated in January-June 2003.
OTHER BUSINESSES CONTENT AND MEDIA BUSINESS
The Content and Media business obtained operating revenues of 571.1 million
euros at the end of the first half of 2004 compared with the 781.7 million
euros registered during the same period of the previous year, mainly due to the
consolidation by the global integration method of the results of Antena 3, Onda
Cero, its subsidiary, and Euroleague during the first half of 2003. These
companies being subsequently removed from the consolidation perimeter of the
Telefonica Group. Without taking into account these changes in the
consolidation perimeter, consolidated revenues would grow more than 12% vs. the
first half of 2003, mainly due to the positive performance of Endemol in its
English speaking markets, and of ATCO, in a context of recovery of the
advertising market in Argentina.
The consolidated EBITDA of the business during the first half of the year
amounted to 87.1 million euros, as compared with the 127.2 million euros
obtained during the same period of 2003. Excluding the contribution made to
consolidated EBITDA by Antena 3, Onda Cero and Euroleague during the first six
months of 2003, the EBITDA growth would be 5.8%.
ENDEMOL The Endemol Group generated revenues of 488.3 million euros during the first
half of 2004, which was 22.4% more than in the same period of the previous
year. In EBITDA terms, Endemol registered 83.4 million euros, 14.9% more than
in the first half of 2003.
ATCO During the first half of 2004, ATCO's (Telefe and Radio Continental) operating
revenues rose to 141.6 million pesos, 40% higher than the figure obtained
during the first half of 2003 and EBITDA climbed to 34.6 million pesos, as
compared with the 8.8 million pesos recorded in the same period of the previous
year.
OTHER BUSINESSES TELEFONICA DEUTSCHLAND GROUP
Telefonica Deutschland Group obtained revenues of 172.8 million euros in the
first six months of 2004, a decrease of 12.6% year on year, due primarily to
the reduction in revenues from narrowband services which has not yet been
offset by the increase in broadband business, which nearly accounted for 12% of
the total revenues.
With respect to the broadband business, it is important to highlight the
addition of 278,000 new ADSL users in the second quarter within Telefonica
Deutschland wholesale (T-ZISP) offer in the German market. As a result, the
total number of the company's ADSL users exceeded the figure of 597,000 (both
in the German and UK markets), providing services to 4 out of the 5 top main
ISPs in Germany.
EBITDA reached a total of 5.4 million euros in the first six months of 2004,
with an EBITDA margin of 3.1%, which compares with the 4.5 million euros
registered in the same period of the previous year.
(1) Figures for BellSouth's Latin American operators, whose acquisition was
agreed in March, at the end of the second quarter of 204, ended on May 04.
For further information:
Press Office
+34 91 584 09 20
DATASOURCE: Telefonica CONTACT: Press Office of Telefonica, +34 91 584 09 20, Web site: http://telefonica.es/saladeprensa
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