Telefónica Móviles puts annus horribilis behind it

20 Feb 2004

Having recorded a net loss of EUR3.72 billion last year after it wrote off the cost of its failed 3G ventures in Italy, Austria, Switzerland and Germany, Telefónica Móviles is celebrating a return to black, recording a 2003 net profit of EUR1.61 billion. Operating revenue rose 10% to EUR10.07 billion, while EBITDA climbed 19.5% to EUR4.46 billion. At the end of the year the group claimed 52 million managed customers, an increase of 10.6 million in twelve months. In its domestic market Telefónica Móviles saw its customer base rise 7% to 19.6 million, giving it an estimated market share of 52.4%. Of the total 40.3% were contract customers, up more than five percentage points on the previous year reflecting the company’s attempts to capture more of Spain’s higher spending customers. In Latin America the company claimed 27.85 million customers, up over 43% year on year. Of this total more than 20.66 million were accounted for by its Brazilian joint venture with Portugal Telecom, Vivo. Telefónica Móviles Mexico added almost a million new customers over the year to take its total to 3.45 million, representing a market share of 11%.