Telefonica full year profits increased by nearly 30%
Telefonica has reported that its full-year revenues rose by 7.1% to US$83.6 billion, spurred by a solid performance in this item in Latin America (+13.3%) and Europe (+12.7%) and the growing contribution of the mobile data business.
Net profit jumped by nearly a third 30.8% to US$14 billion.
The strong growth posted by Telefonica Latinoam©rica and Telefonica Europe drove Telefonica’s solid performance, offsetting the lower contribution of the core business in Spain.
In 2010, Telefonica Latinoamerica and Telefonica Europe accounted for 68% of consolidated revenues, whereas Telefonica Spain’s contribution stood below 31%.
The company added 19.2 million net new customers during 2010, a growth of 7.2% in organic terms (excluding acquisitions) to end the year with 287.6 million subscribers.
Telefonica invested over US$14.87 million in 2010, including the spectrum and license acquisitions carried out in Germany and Mexico. In Spain, despite the difficult economic climate, the company increased its investment by 8.4% to US$2.75 billion.
Net financial debt increased by US$16.52 billion to reach US$76.57 billion at the end of the year.
Telefonica Europe signs agreement to sell Manx Telecom
www.WirelessFederation.com/news: A definitive agreement has been signed by Telefonica Europe to sell Isle of Man-based operator Manx Telecom to HgCapital and CPS Partners for a total enterprise value of GBP 158.8 million.
The purchase price entails a multiple of 6.3 times OIBDA for the year ended December 31, 2009. Recently, Telefonica is following a policy of actively managing its business portfolio globally and underpins its commitment to maintain financial discipline and the sale of Manx Telecom is a continuation of that policy.
The deal will be consummated by end- June following the conclusion of the notice period given to the Isle of Man Government. Full-range of fixed-line, mobile and data services to consumer and business customers is offered by Manx Telecom consisting of 300 employees and reported revenue of GBP 69 million and OIBDA of GBP 25 million for the year ending 31 December 2009.
Telefonica Europe gets three new executive directors
www.WirelessFederation.com/news: In a bid to ease the convergence of fixed and mobile communications, three new executive directors have been appointed by Telefonica Europe.
According to Matthew Key, chairman and CEO of Telefonica Europe, the trio will help the firm grow as Web 2.0 technologies bring about a convergence of fixed and mobile communications.
As per the appointments, Luis Malvido becomes chairman and CEO of Telefonica O2 Czech Republic and earlier served as CEO at several of Telefonica’s fixed and mobile operations in Brazil. Kate Jarvis, legal director of Telefonica Europe, becomes director of Legal and Regulatory Affairs. Trevor Healy moves from CEO of JAJAH to Telefonica Europe’s Board of Directors.
Client division set up by Telefonica in Spain
www.WirelessFederation.com/news: A client division, independent of the business units has been set up by Telefonica for its Spain operations. The unit will bring together the departments of commercial information, market research, and commercial research, as well as the areas of quality and processes.
Besides, the unit will also cover areas of strategy, innovation, branding and marketing services. Fernando Herrera, who previously served as head of Telefonica’s residential customer division, is leading the newly created department.
Similar divisions, with the same functions and responsibilities are already present in other Telefonica group units, particularly Telefonica Europe. By the launch of this unit, the company aims to apply the best customer service practices at its new client division at Telefonica Spain.
Nokia Siemens Networks wins Germany Network Contracts
Nokia Siemen Networks has grabbed the three-year contract with Telefonica O2 Germany to enhance the capability of it’s 2G and 3G networks by upgrading some 200 base stations. The company revealed that it has also won a separate “modernization project” with O2.
Along with upgrading base station, NSN will also upgrade the 3G network with HSDPA software functionality to cover all Germany. EDGE software will be upgraded by Nokia Siemen Network in order to bring high-speed data capability to the GSM network.
For maximized network performance and maintainence services NSN will provide the NetAct network management and service management.Under the separate service contract, Nokia Siemens Networks Services Deutschland will provide O2 in Germany with on demand system repair and maintenance services at all operator’s locations.
We are very pleased to extend our long-term relationship with this agreement and by doing so, to strengthen O2′s competitive position in the market,†said Thomas Riedel, Customer Business Team Head for Telefonica Europe.
