Write-downs hit TM bottom line

19 Feb 2003

Telefónica Móviles™ has recorded a net loss of EUR3.7 billion for the full year 2002, primarily as a result of a EUR5.05 billion write-down of its assets in Germany, Austria, Switzerland and Italy. Excluding the net impact of these costs, accumulated consolidated net income would have amounted to EUR1.41 billion, a year-on-year increase of 46.9%. By geographical area, Telefónica Móviles España accounted for 74% of consolidated revenues in 2002, an increase of 18% on 2001. Latin American operations accounted for a further 25% of turnover. At the end of 2002 net consolidated financial debt stood at EUR6.97 billion, a decline of EUR2 billion compared to the end of 2001.

At the end of the year TM had 41.4 million managed customers, an increase of 39% in twelve months. Spain accounted for 18.4 million of the total, giving it an estimated domestic market share of 55%. Latin America added a further 21.4 million managed customers to the total, the largest portion coming from the group’s Brasilcel joint venture with Portugal Telecom, which boasted 13.74 million customers at the end of the year.

CIT's Yearbook of European Telecommunications 2003