2nd quarterly results- Part 2
Telefonica SA
29 July 2003
Telefonica Group
Market Size
Unaudited figures (Thousands)
June % Chg. 03/02 Weighted (*) % Chg. 03/02
2003 2002 2003 2002
Lines in service (1) 43,180.8 43,091.0 0.2 37,444.4 37,254.4 0.5
In Spain 18,850.7 18,771.6 0.4 18,850.7 18,771.6 0.4
In other countries 24,330.1 24,319.4 0.0 18,593.8 18,482.7 0.6
Cellular customer (2) 48,584.3 33,868.8 43.4 28,906.3 24,967.7 15.8
In Spain 18,877.2 17,623.6 7.1 17,450.1 16,337.1 6.8
In other countries 29,707.2 16,245.2 82.9 11,456.2 8,630.6 32.7
Pay TV Services (3) 1,054.1 1,151.0 (8.4) 679.7 724.5 (6.2)
In Spain 709.1 811.0 (12.6) 344.8 394.4 (12.6)
In other countries 345.0 340.1 1.5 334.9 330.1 1.5
Total 92,819.2 78,110.8 18.8 67,030.4 62,946.5 6.5
(*) Weighted by the equity interest of Telefonica in each of the companies.
(1) Lines in service: includes all lines in service for Telefonica de Espana, Telefonica CTC Chile,
Telefonica de Argentina, Telefonica del Peru, Telesp, CanTV, Telefonica Moviles El Salvador,
Telefonica Moviles Guatemala and Telefonica Deutschland.
(2) Cellular customers: includes all cellular customers of Telefonica Servicios Moviles Espana,
MediTelecom, Telefonica Movil Chile, TCP Argentina, Telefonica Moviles Peru, Brasilcel, NewCom
Wireless Puerto Rico, Telefonica Moviles Guatemala, Telefonica Moviles El Salvador, Telefonica Moviles
Mexico and CanTV Celular.
(3) Pay TV customers: includes all pay TV customers of Via Digital in Spain and Cable Magico in Peru.
Telefonica Group
Selected Financial Data
Unaudited figures (Euros in
millions)
January - June % Chg. 03/02
2003 2002
Operating revenues 13,563.3 14,635.5 (7.3)
EBITDA 5,956.0 6,075.8 (2.0)
Operating profit 2,818.0 2,515.0 12.0
Income before taxes 2,216.6 (5,849.3) c.s.
Net income 1,425.6 (5,574.2) c.s.
Net income per share 0.3 (1.1) c.s.
Avg. No. of shares, millions (1) 5,013.8 5,057.0 (0.9)
(1) Average number of shares in the period, considering the effect of free capital increases funded by
reserves that did not produce any variation of equity structure since January 1 of the first period
presented, and the capital reduction by amortization of trasury stock shares from April 11, 2003, when
the AGM was held. Including the shares corresponding to the capital increases funded by a charge on
freely disposable reserves, recorded with the Mercantile Register on February 18, 2003 and on April 24,
2003, and regarding the capital reduction mentioned, recorded with the Mercantile Register on June 10,
2003. Accordingly, there was an average number of shares outstanding at the end of the period of
5,013,802,534.
Telefonica Group
Results by Companies
Unaudited figures (Euros in
millions)
REVENUES EBITDA OPERATING PROFIT
January-June January-June January-June
2003 2002 % Chg. 2003 2002 % Chg. 2003 2002 % Chg.
Telefonica de Espana G. 5,054.9 5,131.2 (1.5) 2,241.8 2,285.5 (1.9) 937.8 932.2 0.6
Cellular Businesses 4,782.8 4,677.1 2.3 2,175.0 1,912.6 13.7 1,410.7 1,202.5 17.3
Telefonica 2,958.7 3,974.1 ##### 1,411.6 1,927.1 ##### 579.0 760.7 (23.9)
Latinoamerica G.
Telefonica Data Global 863.4 923.1 (6.5) 126.7 9.2 n.s 5.5 (150.5) c.s.
Terra-Lycos G. 252.8 320.5 ##### (36.6) (84.8) ##### (74.1) (161.4) (54.1)
Directories Business 195.7 196.7 (0.5) 42.8 30.6 40.2 30.0 15.3 95.3
Media and Content 781.7 478.7 63.3 127.2 60.7 ##### 95.1 26.6 257.2
Business
Atento G. 241.9 312.0 ##### 25.3 16.1 57.8 (2.1) (27.9) (92.3)
Others companies 257.1 423.6 ##### (107.0) (76.7) 39.5 (146.0) (115.1) 26.9
Eliminations (1,825.8) (1,801.5) 1.3 (50.8) (4.4) n.s (17.7) 32.5 c.s.
Group 13,563.3 14,635.5 (7.3) 5,956.0 6,075.8 (2.0) 2,818.0 2,515.0 12.0
Telefonica S.A.
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January-June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 13,563.3 14,635.5 (7.3) 7,104.3 7,216.9 (1.6)
Internal expend capitalized in fixed assets 225.9 233.6 (3.3) 123.7 131.2 (5.7)
(1)
Operating expenses (7,700.6) (8,543.0) (9.9) (4,005.1) (4,198.1) (4.6)
Supplies (2,973.7) (3,480.1) (14.6) (1,534.5) (1,705.3) (10.0)
Personnel expenses (2,344.8) (2,518.5) (6.9) (1,178.8) (1,245.6) (5.4)
Subcontracts (2,155.1) (2,319.1) (7.1) (1,169.9) (1,145.1) 2.2
Taxes (227.0) (225.2) 0.8 (122.0) (102.2) 19.4
Other net operating income (expense) (132.6) (250.3) (47.0) (86.0) (118.9) (27.6)
EBITDA 5,956.0 6,075.8 (2.0) 3,136.9 3,031.1 3.5
Depreciation and amortization (3,138.0) (3,560.8) (11.9) (1,577.0) (1,724.1) (8.5)
Operating profit 2,818.0 2,515.0 12.0 1,559.9 1,306.9 19.4
Profit from associated companies (132.5) (252.9) (47.6) (81.9) (126.2) (35.1)
Financial net income (expense) (296.5) (1,609.0) (81.6) (50.3) (752.8) (93.3)
Amortization of goodwill (212.2) (345.1) (38.5) (109.3) (175.1) (37.6)
Extraordinary net income (expense) 39.8 (6,157.3) c.s. 71.3 (5,959.1) c.s.
Income before taxes 2,216.6 (5,849.3) c.s. 1,389.7 (5,706.2) c.s.
Income taxes (715.7) 102.8 c.s. (452.0) (76.4) n.s
Net income before minority interests 1,500.9 (5,746.5) c.s. 937.7 (5,782.6) c.s.
Minority interests (75.3) 172.3 c.s. (55.5) 87.4 c.s.
Net income 1,425.6 (5,574.2) c.s. 882.2 (5,695.3) c.s.
Average shares (millions) (2) 5,013.8 5,057.0 (0.9) 4,973.8 5,057.0 (1.6)
Net income per share 0.3 (1.1) c.s. 0.2 (1.1) c.s.
(1) Including work in process.
(2) Average number of shares in the period, considering the effect of free capital increases funded by
reserves that did not produce any variation of equity structure since January 1 of the first period
presented, and the capital reduction by amortization of trasury stock shares from April 11, 2003, when
the AGM was held. Including the shares corresponding to the capital increases funded by a charge on
freely disposable reserves, recorded with the Mercantile Register on February 18, 2003 and on April 24,
2003, and regarding the capital reduction mentioned, recorded with the Mercantile Register on June 10,
2003. Accordingly, there was an average number of shares outstanding at the end of the period of
5,013,802,534.
Telefonica S.A.
Consolidated Balance Sheet
Unaudited figures (Euros in millions)
June % Chg. 03/02
2003 2002
Subscribed shares not paid-in 228.7 335.1 (31.7)
Long-term assets 47,634.7 56,537.4 (15.7)
Start up expenses 597.2 695.9 (14.2)
Intangible net assets 7,516.2 16,938.7 (55.6)
Fixed net assets 26,050.1 29,599.3 (12.0)
Investment 13,471.3 9,303.5 44.8
Goodwill on consolidation 6,345.6 7,708.6 (17.7)
Deferred expenses 615.5 648.8 (5.1)
Current assets 11,656.5 13,561.1 (14.0)
Inventories 422.6 714.2 (40.8)
Accounts receivable 6,167.9 9,223.5 (33.1)
Short-term investments 2,061.3 2,457.2 (16.1)
Cash and banks 2,652.9 616.7 330.2
Others 351.9 549.5 (36.0)
Assets = Liabilities 66,481.0 78,790.9 (15.6)
Shareholder's equity 16,878.9 18,061.6 (6.5)
Minority interests 5,642.7 9,643.0 (41.5)
Badwill on consolidation 10.5 12.6 (16.5)
Deferred income 873.0 1,296.5 (32.7)
Provisions for risks and expenses 6,867.0 10,278.4 (33.2)
Long-term debt 20,382.0 21,537.1 (5.4)
Accrued taxes payable 1,371.9 1,373.3 (0.1)
Short-term debt including current maturities 4,755.9 7,325.6 (35.1)
Interest payable 405.7 453.2 (10.5)
Other creditors 9,293.6 8,809.6 5.5
Financial Data
Consolidated net debt (1) 19,990.6 25,788.8 (22.5)
Consolidated debt ratio (2) 44.7% 45.9% (1.3) p.p.
(1) Net debt: Long-term debt (excluding debt with minority partners) + Short-term debt including current maturities
- Short-term and Long-term investments - Cash and banks.
(2) Debt ratio: Net debt / (Shareholders' equity + Minority interests + Deferred income + Accrued taxes payable +
Net debt)
Telefonica S.A.
Group
Change in Debt
Unaudited figures (Euros in
millions)
January - June
2003
I Cash flows from operations 5,753.6
II Other payment related to operating activities (443.7)
III Net interest payment (759.7)
IV Payment for income tax (114.4)
A= I+II+III+IV Net cash provided by operating activities 4,435.8
B Net payment for investment in fixed and intangible (1,429.4)
assets
C= A+B Net free cash flow before dividends 3,006.4
D Net payment for financial investment (663.1)
E Dividends paid (134.2)
F=C+D+E Free cash flow after dividends 2,209.1
G Effects of exchange rate changes on net debt (531.4)
H Effects on net debt of changes in consolidation and 198.0
others
I Net debt at beginning of period 22,533.1
J=I-F+G+H Net debt at end of period 19,990.6
Telefonica S.A. Group
Operating Cash Flow
Unaudited figures (Euros in millions)
January - June 2003
EBITDA 5,956.0
- CAPEX accrued during the period (EoP exchange rate) (1,532.9)
- Other payment related to operating activities (443.7)
- Net interest payment (759.7)
- Income tax payment (114.4)
- Investment in working capital (367.2)
+ Cash received from fixed assets 268.4
- Net payment for financial investment (663.1)
- Payment of Dividends (134.2)
= Free Cash Flow after dividends 2,209.1
Telefonica S.A.
Exchange Rates Applied
June
2003 2002
US Dolar / Euro 1.103 0.897
Argentinean Peso / Euro 3.306 2.423
Chilean Peso / Euro 771.080 617.150
Brasilian Real / Euro 3.549 2.191
Peruvian Sol / Euro 3.829 3.149
Mexican Peso / Euro 11.560 8.969
Note: These exchange rates are used to convert the P&L accounts of the Group foreign subsidiaries from local
currency to euros. P&L accounts for subsidiaries that use inflation adjusted accounting criteria (Mexico, Chile,
Peru, Colombia and Venezuela), are first converted to US dolars at the closing exchange rate, and then the
conversion into euros is made according at the average exchange rate.
Telefonica de Espana Group
Selected Operating Data
Unaudited figures (Thousands)
June % Chg. 03/02
2003 2002
Lines in service 18,850.7 18,771.6 0.4
PSTN lines 15,230.7 15,805.7 (3.6)
ISDN equivalent basic access 1,792.3 1,708.2 4.9
ISDN equivalent primary access 422.5 483.6 (12.6)
2/6 Accesses for PBX and Ibercom 111.7 113.2 (1.3)
ADSL connections 1,293.6 660.9 95.7
Employees (units) 40,595.0 40,908.0 (0.8)
Traffic (millions of minutes) 71,388.0 73,292.0 (2.6)
Note: PSTN (including Public Use Telephony) (x 1) - ISDN Basic accesss (x 2) - ISDN Primary accesss (x
30) - 2/6 Accesses (x 30) - ADSL Lines (x1).
Telefonica de Espana
Operating Revenues (Individual)
Unaudited figures (Euros in
millions)
January - June April-June
2003 2002 % Chg. 2003 2002 % Chg.
Traditional Services 3,786.6 3,919.1 (3.4) 1,905.8 1,989.1 (4.2)
Client network access (1) 1,493.5 1,436.6 4.0 753.5 720.4 4.6
Voice usage (Net total) (2) 1,718.2 1,882.4 (8.7) 863.2 948.7 (9.0)
Local 422.4 469.2 (10.0) 207.3 236.2 (12.2)
Provincial 137.7 146.6 (6.1) 67.9 73.9 (8.2)
Domestic long distance 234.9 264.0 (11.0) 116.2 130.9 (11.2)
International long distance 123.0 127.0 (3.1) 64.1 60.0 6.7
Fixed to mobile 621.5 693.1 (10.3) 317.6 358.8 (11.5)
IRIS and others (3) 178.5 182.4 (2.1) 90.2 88.9 1.5
Handsets sales and maintenance 353.8 353.9 (0.0) 178.9 185.0 (3.3)
Leased circuits and TV broadcasting 69.9 72.9 (4.2) 34.1 41.6 (18.0)
Other business lines (4) 151.3 173.3 (12.7) 76.1 93.5 (18.6)
Internet and Broadband Services 399.2 302.8 31.8 208.1 158.9 30.9
Narrowband 149.7 196.0 (23.6) 69.7 101.4 (31.3)
Broadband (retail) 249.5 106.9 133.4 138.4 57.5 140.7
Wholesale Services 692.4 739.5 (6.4) 357.8 370.9 (3.5)
National interconnection 179.4 182.8 (1.9) 93.5 94.8 (1.4)
Wholesale ADSL (Megabase and GigADSL) 75.1 40.0 87.7 39.8 18.0 120.5
International operators services 140.4 162.8 (13.8) 72.7 81.0 (10.2)
Other national operators services (5) 297.5 353.8 (15.9) 151.9 177.1 (14.2)
Total operating revenues 4,878.2 4,961.4 (1.7) 2,471.7 2,518.9 (1.9)
(1) Revenues derived from monthly and connection fees (PSTN, Public Use Telephony, ISDN and Corporate
Services), public telephone booths and network services.
(2) Voice usage net of discounts, foreign participation (international long distance) and payments to
Intelligent Network providers.
(3) Services included: Intelligent Network services, Special Valued Services and others.
(4) Special Projects, Services agency and others.
(5) Services included: Commercial wholesale services (access, carrier and maintenance), wholesale
leased circuits, other IP services and ULL.
Telefonica de Espana Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 5,054.9 5,131.2 (1.5) 2,568.5 2,612.5 (1.7)
Internal expend capitalized in fixed 75.4 82.0 (8.1) 40.0 41.0 (2.4)
assets (1)
Operating expenses (2,852.1) (2,877.5) (0.9) (1,452.9) (1,469.2) (1.1)
Other net operating income (expense) (36.5) (50.3) (27.4) (23.3) (25.7) (9.6)
EBITDA 2,241.8 2,285.5 (1.9) 1,132.3 1,158.6 (2.3)
Depreciation and amortization (1,304.0) (1,353.3) (3.6) (644.2) (674.5) (4.5)
Operating profit 937.8 932.2 0.6 488.1 484.1 0.8
Profit from associated companies (0.6) (0.9) (35.2) (0.1) (0.6) (78.6)
Financial net income (expense) (228.6) (201.4) 13.5 (111.7) (99.7) 12.0
Amortization of goodwill (0.2) (6.5) (97.6) (0.1) (5.3) (98.5)
Extraordinary net income (expense) 21.2 (148.0) c.s. 21.5 (81.9) c.s.
Income before taxes 729.7 575.4 26.8 397.7 296.7 34.1
Income taxes (201.7) (108.1) 86.6 (108.9) (61.9) 76.0
Net income before minority interests 528.0 467.3 13.0 288.9 234.8 23.0
Minority interests (0.1) (0.1) 13.0 (0.0) (0.0) (6.8)
Net income 527.9 467.3 13.0 288.8 234.8 23.0
(1) Including work in process
Telefonica Latinoamerica Group
Companies Financial Data
Unaudited figures (Euros in millions)
January-June
2003 2002 % Chg
Telesp
Operating revenues 1,568.3 2,186.1 (28.3)
EBITDA 740.1 1,116.7 (33.7)
EBITDA margin 47.2% 51.1% (3.9) p.p.
Telefonica de Argentina
Operating revenues 397.4 481.9 (17.6)
EBITDA 238.2 244.4 (2.5)
EBITDA margin (1) 60.0% 50.7% 9.3 p.p.
Telefonica CTC Chile
Operating revenues 450.2 623.6 (27.8)
EBITDA 195.5 258.1 (24.2)
EBITDA margin 43.4% 41.4% 2.0 p.p.
Telefonica del Peru
Operating revenues 549.9 659.1 (16.6)
EBITDA 241.2 308.0 (21.7)
EBITDA margin 43.9% 46.7% (2.9) p.p.
Note: EBITDA before management fees. Data for Telefonica de Argentina include the ISP business of Advance, while
those of Telefonica CTC Chile (January-June 2002) and Telefonica del Peru include Sonda and CableMagico,
respectively.
(1) Net of fixed to mobile interconnection.
Telefonica Latinoamerica Group
Selected Operating Data
Unaudited figures (Thousands)
June % Chg. 03/02
2003 2002
Telesp
Lines in Service (1) 12,785.5 12,793.8 (0.1)
PSTN Lines 11,212.0 11,173.7 0.3
ISDN equivalent accesses 33.1 43.3 (23.6)
2/6 Accesses for PBX and Ibercom 1,157.3 1,294.5 (10.6)
ADSL connections 383.2 282.3 35.7
Employees (units) (3) 8,281.0 10,065.0 (17.7)
Traffic (millions of minutes) (2) 41,509.2 39,074.4 6.2
Telefonica de Argentina
Lines in Service (1) 4,222.1 4,234.8 (0.3)
PSTN Lines 4,095.8 4,121.9 (0.6)
ISDN equivalent accesses 6.5 4.7 38.4
2/6 Accesses for PBX and Ibercom 74.2 79.5 (6.7)
ADSL connections 45.6 28.7 58.9
Employees (units) (3) 8,050.0 8,627.0 (6.7)
Traffic (millions of minutes) (2) 16,877.9 16,093.1 4.9
Telefonica CTC Chile
Lines in Service (1) 2,650.6 2,806.2 (5.5)
PSTN Lines 2,417.7 2,621.8 (7.8)
ISDN equivalent accesses 91.3 90.8 0.6
2/6 Accesses for PBX and Ibercom 57.4 63.4 (9.5)
ADSL connections 84.2 30.3 178.2
Employees (units) (3) * 3,243.0 6,265.0 (48.2)
Traffic (millions of minutes) (2) 11,965.6 12,833.9 (6.8)
Telefonica del Peru
Lines in Service (1) 1,926.4 1,786.1 7.9
PSTN Lines 1,837.7 1,736.1 5.9
ISDN equivalent accesses 34.3 34.2 0.3
2/6 Accesses for PBX and Ibercom - - n.d.
ADSL connections (3) 54.4 15.8 244.0
Employees (units) (1) 4,886.0 4,402.0 11.0
Traffic (millions of minutes) (2) 6,085.6 6,049.8 0.6
Telefonica Latinoamerica Group
Lines in Service (1) 21,584.6 21,620.9 (0.2)
PSTN Lines 19,563.1 19,653.5 (0.5)
ISDN equivalent accesses 165.1 172.9 (4.5)
2/6 Accesses for PBX and Ibercom 1,288.9 1,437.4 (10.3)
ADSL connections 567.4 357.1 58.9
Employees (units) (3) 24,460.0 29,359.0 (16.7)
Traffic (millions of minutes) (2) 76,438.3 74,051.2 3.2
(1) PSTN (including Public Use Telephony) (x 1) - ISDN Basic accesss (x 2) - ISDN Primary accesss (x 30) - 2/6
Accesses (x 30) - ADSL Lines (x1) and Cablemoden (in Peru).
(2) Including total invoiced incoming and outgoing traffic: Local, PUTs (except at Telesp), DLD and ILD.
(3) Calculated with the wireline company staff of the fixed telephone operator (OTF) and the subsidiaries that are
consolidated by the full integration method.
(*) Including 2.325 employees from Sonda in 2002, that in 2003 are consolidated by the equity method.
Telefonica Latinoamerica Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 2,958.7 3,974.1 (25.5) 1,536.9 1,818.9 (15.5)
Internal expend capitalized in fixed 22.0 42.8 (48.5) 11.7 16.4 (28.3)
assets (1)
Operating expenses (1,489.3) (1,914.9) (22.2) (779.5) (872.4) (10.6)
Other net operating income (expense) (79.9) (174.9) (54.3) (36.4) (85.8) (57.6)
EBITDA 1,411.6 1,927.1 (26.8) 732.7 877.1 (16.5)
Depreciation and amortization (832.5) (1,166.4) (28.6) (426.0) (535.4) (20.4)
Operating profit 579.0 760.7 (23.9) 306.7 341.7 (10.2)
Profit from associated companies 3.1 4.4 (30.8) (3.7) 3.5 c.s.
Financial net income (expense) 152.8 (1,032.2) c.s. 153.9 (457.4) c.s.
Amortization of goodwill (42.5) (45.2) (5.9) (21.3) (23.1) (7.7)
Extraordinary net income (expense) (47.2) (48.4) (2.5) (8.6) (35.7) (75.9)
Income before taxes 645.1 (360.7) c.s. 427.0 (170.9) c.s.
Income taxes (242.7) 154.3 c.s. (152.4) 21.7 c.s.
Net income before minority interests 402.4 (206.5) c.s. 274.6 (149.2) c.s.
Minority interests (37.7) (17.1) 120.2 (17.2) (1.7) n.s.
Net income 364.7 (223.6) c.s. 257.4 (151.0) c.s.
(1) Including work in process
Telefonica Moviles Group
Selected Operating Data
Unaudited figures (Thousands)
CELLULAR CUSTOMERS
June 2003 % Chg. 03/02 Weighted (1)
T Moviles Espana 18,877.2 7.1 18,877.2
Brasilcel 17,520.8 190.3 5,600.5
TCP Argentina 1,608.1 (3.2) 1,574.8
T Moviles Peru 1,303.8 10.5 1,277.5
TEM El Salvador 233.0 3.2 210.3
TEM Guatemala 125.6 (3.8) 125.6
NewCom Wireless Puerto Rico (2) 179.9 (4.3) (0.0)
Telefonica Moviles Mexico 2,538.8 98.2 2,335.9
Medi Telecom 1,762.6 33.4 552.4
Telefonica Movil Chile (3) 1,944.4 13.7 (0.0)
Total Managed (4) 46,094.0 47.0 30,554.4
(1) Number of lines weighted for the Telefonica Moviles Group's stake in each company.
(2) Managed by TEM.
(3) Managed by TEM and part-owned by the Telefonica Group.
(4) After halting UMTS operations in Europe, for comparison purposes, those costumers are not included in 2002.
Telefonica Moviles Espana
Selected Operating Data
Unaudited figures (Thousands)
January - June % Chg. 03/02
2003 2002
Cellular subscribers 18,877.2 17,623.6 7.1
Contract 7,113.0 5,801.9 22.6
Prepaid 11,764.0 11,821.7 (0.5)
Subscribers net adds in year to date (1) 465.1 830.1 (44.0)
Contract 638.0 502.4 27.0
Prepaid (172.9) 327.7 c.s.
Total airtime minutes (millions) (1) 17,788.0 14,997.0 18.6
SMS (millions) 4,412.0 3,928.0 12.3
Employees (units) 4,357.0 4,385.0 (0.6)
(1) January-June accumulated data.
Telefonica Moviles Group: Participated Companies
Selected Operating Data
Unaudited figures (Thousands)
January - June (1)
2003 2002 % Chg.
Spain and Mediterranean area customers 20,639.6 18,904.3 9.2
Contract 7,245.1 6,058.3 19.6
Prepaid 13,394.5 12,846.0 4.3
Latin America customers (2) 23,330.1 10,513.8 121.9
Contract 5,838.0 3,148.9 85.4
Prepaid 17,492.1 7,365.0 137.5
Total airtime minutes (millions) (3) 29,148.7 20,777.3 40.3
(1) Includes total customers from all operators in which Telefonica Moviles holds an economic
participation.
(2) In June 2003 Brasilcel costumers, the Joint Venture with Portugal Telecom in Brazil (from May 2003,
TCO is also incorporated), and Pegaso Telecomunicaciones Group are included. Chile and Puerto Rico are
excluded.
(3) January-June cumulative air minutes of TEM fully consolidated companies.
Telefonica Moviles Group
Selected Financial Data
Unaudited figures (Euros in millions)
January - June % Chg. 03/02
2003 2002
Telefonica Moviles Espana
Operating revenues 3,469.6 3,217.6 7.8
EBITDA 1,875.9 1,657.5 13.2
EBITDA margin 54.1% 51.5% 2.6 p.p.
Brazilian Companies (1)
Operating revenues 585.3 694.4 (15.7)
EBITDA 217.3 273.1 (20.4)
EBITDA margin 37.1% 39.3% (2.2) p.p.
Telefonica Moviles Mexico (2)
Operating revenues 266.0 196.5 35.3
EBITDA (16.7) 25.1 c.s.
EBITDA margin (6.3%) 12.8% (19.1) p.p.
TCP Argentina
Operating revenues 105.3 108.8 (3.2)
EBITDA 32.6 23.6 38.5
EBITDA margin 31.0% 21.7% 9.3 p.p.
Telefonica Moviles Peru
Operating revenues 121.3 145.2 (16.4)
EBITDA 44.4 48.1 (7.7)
EBITDA margin 36.6% 33.1% 3.5 p.p.
T. Moviles Guatemala and El Salvador
Operating revenues 81.1 98.8 (17.9)
EBITDA 13.3 20.5 (35.3)
EBITDA margin 16.4% 20.8% (4.4) p.p.
(1) In June 2003 includes the full integration figures for Brasilcel, the Joint Venture with Portugal Telecom (from
May 2003 TCO is incorporated), and in 2002 the figures from TeleSudeste Celular, TeleLeste Celular and CRT Celular.
(2) Due to the consolidation of Telefonica Moviles Mexico financial statements after the integration of the
northern Mexican operators and Pegaso Telecomunicaciones Group, 2002 and 2003 figures are after intragroup
adjustments between these operators. The annual change is affected by the global consolidation of Grupo Pegaso
Telecomunicaciones from September 2002.
Telefonica Moviles Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 4,635.9 4,516.7 2.6 2,506.2 2,255.1 11.1
Operating expenses (2,525.6) (2,706.5) (6.7) (1,373.6) (1,320.7) 4.0
Other net operating income 16.7 54.2 (69.2) 1.3 13.4 (90.3)
(expense)
EBITDA 2,127.0 1,864.4 14.1 1,133.8 947.7 19.6
Depreciation and amortization (724.8) (673.3) 7.7 (367.5) (332.5) 10.5
Operating profit 1,402.2 1,191.1 17.7 766.4 615.3 24.6
Profit from associated companies (47.7) (65.7) (27.4) (24.1) (32.2) (25.2)
Financial net income (expense) (157.0) (205.2) (23.5) (78.1) (127.3) (38.6)
Amortization of goodwill (46.5) (40.8) 13.9 (25.5) (20.2) 25.8
Extraordinary net income (expense) 6.0 (4,909.2) c.s. 1.0 (4,904.5) c.s.
Income before taxes 1,156.9 (4,029.8) c.s. 639.7 (4,469.0) c.s.
Income taxes (388.9) (343.9) 13.1 (217.7) (175.0) 24.4
Net income before minority 768.0 (4,373.7) c.s. 422.0 (4,644.0) c.s.
interests
Minority interests 10.8 40.5 (73.2) (2.1) 24.1 c.s.
Net income 778.9 (4,333.3) c.s. 419.8 (4,619.9) c.s.
Mobile Business of Telefonica Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 4,782.8 4,677.1 2.3 2,582.8 2,328.3 10.9
Internal expend capitalized in fixed 40.3 49.9 (19.1) 21.3 27.1 (21.5)
assets (1)
Operating expenses (2,611.2) (2,765.8) (5.6) (1,416.3) (1,354.4) 4.6
Other net operating income (expense) (37.0) (48.5) (23.9) (29.3) (29.3) 0.2
EBITDA 2,175.0 1,912.6 13.7 1,158.5 971.7 19.2
Depreciation and amortization (764.3) (710.1) 7.6 (388.4) (349.4) 11.2
Operating profit 1,410.7 1,202.5 17.3 770.1 622.3 23.8
Profit from associated companies (47.7) (65.7) (27.4) (24.1) (32.2) (25.2)
Financial net income (expense) (174.2) (231.6) (24.8) (86.6) (139.1) (37.7)
Amortization of goodwill (52.9) (48.5) 9.0 (28.7) (23.8) 20.6
Extraordinary net income (expense) 6.0 (4,910.2) c.s. 0.6 (4,904.7) c.s.
Income before taxes 1,141.8 (4,053.5) c.s. 631.3 (4,477.5) c.s.
Income taxes (385.2) (341.5) 12.8 (216.0) (174.1) 24.1
Net income before minority interests 756.6 (4,395.0) c.s. 415.2 (4,651.6) c.s.
Minority interests 17.3 52.5 (67.1) 1.6 28.4 (94.2)
Net income 773.9 (4,342.5) c.s. 416.9 (4,623.2) c.s.
(1) Including work in process
Telefonica Data Group
Selected Financial Data
Unaudited figures (Euros in millions)
January-June
2003 2002 % Chg
Telefonica Data Espana
Operating revenues 401.3 372.4 7.8
EBITDA 112.3 83.1 35.2
EBITDA margin 28.0% 22.3% 5.7 p.p.
Telefonica Data in Latin America Incumbent Market (1)
Operating revenues 160.9 184.7 (12.9)
EBITDA 29.5 21.4 38.1
EBITDA margin 18.4% 11.6% 6.8 p.p.
Telefonica Deutschland (2)
Operating revenues 197.6 206.4 (4.3)
EBITDA 4.5 10.0 (55.2)
EBITDA margin 2.3% 4.8% (2.6) p.p.
Telefonica Data in Latin America Expanding Market (3)
Operating revenues 30.3 21.6 40.1
EBITDA (7.7) (19.6) (60.7)
EBITDA margin (25.5%) (90.8%) 65.3 p.p.
Telefonica Data Group
Operating revenues 786.8 870.3 (9.6)
EBITDA 132.0 59.2 122.9
EBITDA margin 16.8% 6.8% 10.0 p.p.
(1) Brazil, Argentina, Peru and Chile
(2) Germany and United Kingdom
(3) Mexico, USA and Colombia. For 2002, Uruguay is also included.
Data, Solutions and International Services
Business
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 863.4 923.1 (6.5) 453.8 457.8 (0.9)
Internal expend capitalized in fixed assets 5.1 6.3 (18.4) 5.1 2.8 82.2
(1)
Operating expenses (742.1) (907.4) (18.2) (390.5) (447.3) (12.7)
Other net operating income (expense) 0.2 (12.8) c.s. 0.2 (5.9) c.s.
EBITDA 126.7 9.2 n.s. 68.5 7.4 n.s.
Depreciation and amortization (121.2) (159.7) (24.1) (61.2) (79.3) (22.8)
Operating profit 5.5 (150.5) c.s. 7.3 (71.9) c.s.
Profit from associated companies (1.6) (14.7) (88.9) (0.9) (9.2) (90.4)
Financial net income (expense) (25.5) (95.2) (73.2) (11.4) (43.9) (73.9)
Amortization of goodwill (24.8) (45.5) (45.5) (12.3) (25.1) (51.1)
Extraordinary net income (expense) (4.0) (701.1) (99.4) (0.4) (695.5) (99.9)
Income before taxes (50.4) (1,007.0) (95.0) (17.7) (845.6) (97.9)
Income taxes (11.0) 76.2 c.s. (3.4) 42.8 c.s.
Net income before minority interests (61.4) (930.8) (93.4) (21.1) (802.8) (97.4)
Minority interests (2.8) 35.9 c.s. (1.3) 21.1 c.s.
Net income (64.3) (894.9) (92.8) (22.4) (781.8) (97.1)
(1) Including work in process
Admira Media Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 781.7 478.7 63.3 409.5 260.9 57.0
Internal expend capitalized in fixed assets 0.0 0.3 n.s. 0.0 0.1 n.s
(1)
Operating expenses (670.4) (424.1) 58.1 (328.1) (210.8) 55.6
Other net operating income (expense) 15.8 5.7 176.1 9.1 3.8 140.7
EBITDA 127.2 60.7 109.7 90.5 53.9 68.0
Depreciation and amortization (32.1) (34.1) (5.6) (17.5) (18.3) (4.4)
Operating profit 95.1 26.6 257.2 73.0 35.6 105.1
Profit from associated companies (58.7) (116.4) (49.6) (31.6) (51.2) (38.3)
Antena 3 TV (2) - (9.3) n.d. - (9.2) n.d.
Via Digital (55.4) (66.6) (16.8) (27.8) (35.2) (21.0)
Others (3.3) (40.5) (91.9) (3.8) (6.8) (44.1)
Financial net income (expense) (21.7) (74.6) (70.9) (10.8) (37.5) (71.2)
Amortization of goodwill (41.5) (45.5) (8.6) (21.5) (23.4) (8.1)
Extraordinary net income (expense) (44.9) (192.3) (76.6) (30.8) (148.9) (79.3)
Income before taxes (71.8) (402.1) (82.1) (21.6) (225.3) (90.4)
Income taxes (9.6) 97.9 c.s. (22.6) 53.6 c.s.
Net income before minority interests (81.5) (304.2) (73.2) (44.2) (171.7) (74.2)
Minority interests (3.9) (1.4) 176.5 (7.9) 0.4 c.s.
Net income (85.4) (305.6) (72.1) (52.1) (171.3) (69.6)
(1) Including work in process.
(2) Antena 3, and its subsidiary Onda Cero, is consolidated by the full consolidation method from the
first quarter of 2003.
Note: For the presentation of these figures, the results individually obtained by both Telefonica de
Contenidos and Admira Media Corporation for the Antena 3 TV transmission to Telefonica S.A. are not
included. These results will be materialized with the effective de-consolidation of Antena 3 TV.
Terra-Lycos Group
Selected Operating Data
Unaudited figures (Thousands)
June
2003 2002 % Chg
Total Pay Subscribers 3,610.1 2,268.8 59.1
Access 1,522.3 1,349.1 12.8
Narrowband 1,044.9 1,048.3 (0.3)
Broadband 477.4 300.7 58.8
OBP (CSP/Portal) 2,087.8 919.7 127.0
Broadband Access Subscribers by Country 477.4 300.7 58.8
Spain 135.3 122.7 10.2
Latin-America 342.2 178.0 92.2
Employees (units) 2,285.0 2,853.0 (19.9)
Terra-Lycos Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 252.8 320.5 (21.1) 138.3 161.0 (14.1)
Internal expend capitalized in fixed 0.6 0.6 (0.9) 0.4 0.3 52.1
assets (1)
Operating expenses (286.2) (392.7) (27.1) (154.1) (191.8) (19.7)
Other net operating income (expense) (3.8) (13.2) (71.3) (1.7) (7.8) (78.6)
EBITDA (36.6) (84.8) (56.8) (17.1) (38.3) (55.5)
Depreciation and amortization (37.5) (76.6) (51.1) (18.0) (36.2) (50.2)
Operating profit (74.1) (161.4) (54.1) (35.1) (74.6) (52.9)
Profit from associated companies (8.6) (39.1) (78.0) 2.6 (18.1) c.s.
Financial net income (expense) 21.4 33.7 (36.5) 9.1 19.3 (52.6)
Amortization of goodwill (42.2) (128.9) (67.3) (22.0) (63.2) (65.1)
Extraordinary net income (expense) 5.8 (2.9) c.s. 3.3 (1.6) c.s.
Income before taxes (97.7) (298.6) (67.3) (42.2) (138.2) (69.5)
Income taxes (0.2) 62.3 c.s. (0.0) 32.2 c.s.
Net income before minority interests (97.9) (236.3) (58.6) (42.2) (105.9) (60.2)
Minority interests 0.0 2.8 n.s. (0.0) 2.2 c.s.
Net income (97.9) (233.5) (58.1) (42.2) (103.7) (59.3)
(1) Including work in process
TPI - Paginas Amarillas Group
Operating figures in Spain
Unaudited figures
January - June
2003 2002 % Chg
Books Published
Yellow Pages* 40 29
White Pages 26 24
(Euros in million)
Revenue Breakdown (1) 141.3 125.6 12.5
Advertising 126.6 118.3 7.0
Publishing 112.1 105.1 6.7
Yellow Pages 87.4 85.4 2.3
White Pages 24.7 19.6 25.9
Internet 12.1 11.4 5.5
Operator Assisted Yellow Pages 1.9 1.8 6.8
Others 0.5 (0.0) n.s.
Telephony Traffic 6.6 0.6 919.6
Operator 6.9 5.7 20.5
Others 1.2 0.9 30.6
* Includes a breakdown by residential/business services.
(1) TPI Espana includes the revenues both from Telefonica Publicidad e Informacion S.A. and 11888 Servicio de
Consulta Telefonica S.A.U. Goodman Business Press not included.
TPI-Paginas Amarillas Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 192.5 191.0 0.8 125.9 128.1 (1.7)
Operating expenses (150.0) (160.5) (6.5) (94.1) (105.2) (10.5)
EBITDA 42.5 30.5 39.6 31.8 22.9 38.6
Depreciation and amortization (12.4) (14.2) (12.6) (6.2) (7.3) (15.2)
Operating profit 30.1 16.2 85.4 25.6 15.6 63.6
Profit from associated companies (0.7) (0.7) 0.5 (0.2) (0.4) (62.7)
Financial net income (expense) (1.7) (5.8) (70.2) (0.7) (3.4) (79.5)
Amortization of goodwill (1.5) (1.5) (1.3) (0.8) (0.8) (1.3)
Consolidation adjustments 0.6 0.7 (19.7) 0.2 0.4 (63.4)
Extraordinary net income (expense) (0.1) (0.2) (50.8) 0.3 (0.3) c.s.
Income before taxes 26.6 8.7 205.6 24.3 11.2 116.6
Income taxes (11.5) (8.1) 42.0 (10.8) (9.8) 10.1
Net income before minority 15.1 0.6 n.s 13.5 1.4 n.s.
interests
Minority interests 5.6 12.6 (55.6) 3.9 9.3 (58.3)
Net income 20.6 13.1 57.0 17.4 10.7 62.6
Directories Business of Telefonica Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 195.7 196.7 (0.5) 129.0 128.7 0.2
Internal expend capitalized in fixed (0.0) (0.0) n.s. (0.0) (0.0) n.s.
assets (1)
Operating expenses (141.9) (152.4) (6.9) (89.6) (96.2) (6.9)
Other net operating income (expense) (10.9) (13.7) (20.2) (6.6) (8.9) (25.9)
EBITDA 42.8 30.6 40.2 32.8 23.6 38.7
Depreciation and amortization (12.9) (15.2) (15.4) (6.4) (7.8) (17.7)
Operating profit 30.0 15.3 95.3 26.4 15.9 66.4
Profit from associated companies (0.7) (0.7) 0.5 (0.2) (0.4) (62.7)
Financial net income (expense) (4.3) (4.9) (12.8) (1.8) 1.5 c.s.
Amortization of goodwill (1.0) (0.8) 14.4 (0.7) (0.4) 106.3
Extraordinary net income (expense) (0.4) (0.5) (26.2) (0.0) (0.5) (97.8)
Income before taxes 23.7 8.4 181.6 23.7 16.1 46.6
Income taxes (11.5) (8.1) 42.0 (10.8) (9.8) 10.1
Net income before minority interests 12.1 0.3 n.s. 12.9 6.3 102.9
Minority interests 5.5 12.6 (56.3) 3.8 9.3 (58.6)
Net income 17.6 12.9 37.1 16.7 15.6 7.1
(1) Including work in process.
Atento Group
Consolidated Income Statement
Unaudited figures (Euros in
millions)
January - June April - June
2003 2002 % Chg. 2003 2002 % Chg.
Operating revenues 241.9 312.0 (22.5) 119.4 155.6 (23.3)
Operating expenses (218.1) (292.0) (25.3) (109.1) (146.1) (25.3)
Other net operating income (expense) 1.6 (4.0) c.s. 1.4 (3.9) c.s.
EBITDA 25.3 16.1 57.8 11.7 5.7 107.1
Depreciation and amortization (27.5) (43.9) (37.5) (13.6) (20.6) (33.9)
Operating profit (2.1) (27.9) (92.3) (1.9) (14.9) (87.2)
Financial net income (expense) (17.1) (45.7) (62.5) (8.7) (28.4) (69.5)
Amortization of goodwill (3.5) (4.4) (19.3) (1.7) (2.1) (19.7)
Extraordinary net income (expense) 1.2 (2.9) c.s. 0.8 (1.7) c.s.
Income before taxes (21.6) (80.7) (73.3) (11.5) (47.2) (75.7)
Income taxes 6.8 13.9 (50.9) 3.1 7.9 (61.3)
Net income before minority interests (14.8) (66.9) (77.9) (8.4) (39.3) (78.6)
Minority interests (0.1) 0.7 c.s. (0.1) 0.3 c.s.
Net income (14.9) (66.2) (77.6) (8.5) (39.0) (78.2)
Telefonica, S.A.
% PART.
TELEFONICA DE ESPANA 100.00%
TELEFONICA MOVILES 92.44%
TELEFONICA DATA GLOBAL 100.00%
TELEFONICA LATINOAMERICA 100.00%
TPI 59.90%
TERRA LYCOS 38.95%
TELEFONICA DE CONTENIDOS 100.00%
CORPORACION ADMIRA MEDIA 100.00%
EMERGIA 100.00%
ATENTO 100.00%
Telefonica Moviles, S.A.
% PART.
TELEFONICA MOVILES ESPANA 100.00%
BRASILCEL (1) 50.00%
TCP ARGENTINA 97.93%
TEM PERU 97.97%
T. MOVILES MEXICO (2) 92.00%
TEM EL SALVADOR 90.26%
TEM GUATEMALA 100.00%
GROUP 3G (GERMANY) 57.20%
IPSE 2000 (ITALY) 45.59%
3G MOBILE (AUSTRIA) 100.00%
3G MOBILE AG (SWITZERLAND) 100.00%
MEDI TELECOM (MOROCCO) 31.34%
TERRA MOBILE 100.00%
MOBIPAY ESPANA 13.33%
MOBIPAY INTERNACIONAL 36.00%
T. MOV. APLIC. Y SOLUCIONES (CHILE) 100.00%
(1) Joint Venture which consolidated TeleSudeste Celular, Celular CRT, TeleLeste Celular and Telesp Celular
Participacoes. From May 2003, Telesp Celular Participacoes includes the stake acquired in TeleCentro Oeste.
(2) Company which consolidated the North Mexican operators (Norcel, Bajacel, Movitel y Cedetel) and Grupo Pegaso
PCS.
Telefonica Data Global
% PART.
TELEFONICA DATA ESPANA 100.00%
TELEFONICA SISTEMAS 100.00%
TELEFONICA DATA MEXICO 100.00%
TELEFONICA DATA COLOMBIA 65.00%
TELEFONICA EMPRESAS BRASIL 100.00%
TELEFONICA DATOS DE VENEZUELA 100.00%
TELEFONICA DATA PERU 97.07%
TELEFONICA DATA ARGENTINA 97.92%
TELEFONICA DATA CANADA 100.00%
TELEFONICA DATA USA 100.00%
KATALYX ESPANA 100.00%
TIWS (1) 100.00%
ATLANET 34.00%
FACTORIA DE CONTENIDOS DIGITALES (ART MEDIA) 100.00%
TELEFONICA MOBILE SOLUTIONS 100.00%
TELEFONICA DEUTSCHLAND 100.00%
Telefonica Publicidad e Informacion (TPI)
% PART.
GOODMAN BUSINESS PRESS 100.00%
TPI INTERNACIONAL 100.00%
PUBLIGUIAS (CHILE) 51.00%
TPI BRASIL 100.00%
TPI PERU 100.00%
11888 SERVICIOS CONSULTA TELEFONICA 100.00%
BUILDNET 97.59%
Telefonica Latinoamerica
% PART.
TELESP 87.35%
TELEFONICA DEL PERU 97.15%
TELEFONICA ARGENTINA 98.03%
TLD 98.00%
TELEFONICA CTC CHILE 43.64%
INFONET SERVICES CORPORATION 14.47%
CAN TELEFONOS VENEZUELA (CANTV) 6.92%
Grupo Admira Media
% PART.
ANTENA 3 TV 34.14%
TELEFE 100.00%
ENDEMOL 99.47%
PATAGONIK FILM GROUP 30.00%
LOLA FILMS 70.00%
TORNEOS Y COMPETENCIAS 20.00%
SERVICIOS DE TELEDISTRIBUCION 100.00%
RODVEN 51.00%
EUROLEAGUE 70.00%
AUDIOVISUAL SPORT 40.00%
TELEFONICA SPORT 100.00%
VIA DIGITAL 96.64%
TELEFONICA SERVICIOS AUDIOVISUALES 100.00%
PEARSON 4.85%
MEDIA PARK 7.40%
TICK TACK TICKET 47.50%
HISPASAT 13.23%
Terra Lycos
% PART.
LYCOS, INC 100.00%
TERRA NETWORKS PERU 99.99%
TERRA NETWORKS MEXICO 99.99%
TERRA NETWORKS USA 100.00%
TERRA NETWORKS GUATEMALA 100.00%
TERRA NETWORKS EL SALVADOR 99.99%
TERRA NETWORKS VENEZUELA 100.00%
TERRA NETWORKS BRASIL 100.00%
TERRA NETWORKS ARGENTINA 100.00%
TERRA NETWORKS ESPANA 100.00%
TERRA NETWORKS CHILE 100.00%
TERRA NETWORKS MAROCS 100.00%
TERRA NETWORKS HONDURAS 99.99%
TERRA NETWORKS COSTA RICA 99.99%
TERRA NETWORKS NICARAGUA 99.99%
TERRA NETWORKS CARIBE 99.98%
TERRA NETWORKS COLOMBIA 68.30%
IFIGENIA PLUS 100.00%
EDUCATERRA 100.00%
A TU HORA 50.00%
AZELER AUTOMOCION 50.00%
R.U.M.B.O. 50.00%
UNO-E BANK 33.00%
ONE TRAVEL .COM 52.07%
AREMATE.COM 29.50%
Grupo Atento
% PART.
ATENTO TELESERVICIOS ESPANA, S.A. 100.00%
ATENTO BRASIL, S.A. 100.00%
ATENTO DE GUATEMALA, S.A. 100.00%
ATENTO MEXICANA 100.00%
ATENTO PERU, S.A.C. 100.00%
ATENTO CHILE, S.A. 83.08%
ATENTO MAROC, S.A. 100.00%
ATENTO EL SALVADOR, S.A. DE C.V. 100.00%
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