3rd Quarter Results - Part 2

Telefonica SA
14 November 2002

PART 2

  Telefonica Group
  Market Size

  Unaudited figures                                                                                        (Thousands)
                                           September            % Chg. 02/01      Weigthed (*)         % Chg. 02/01
                                     2002            2001                       2002        2001
  Lines in service                     45.306,4        45.159,9       0,3       39.542,5    39.213,0   0,8
  In Spain                             21.118,8        20.885,7       1,1       21.118,8    20.885,7   1,1
  In other countries(1)                24.187,6        24.274,2     (0,4)       18.423,7    18.327,3   0,5

  Cellular customer                    35.980,2        29.959,1      20,1       26.576,3    22.295,3  19,2
  In Spain                             18.127,0        15.620,6      16,0       16.754,8    14.558,4  15,1
  In other countries(2)                17.853,2        14.338,5      24,5        9.821,6     7.736,9  26,9

  Pay TV Services (3)                   1.149,3         1.104,4       4,1          725,9       693,6   4,7
  In Spain                                811,0           752,7       7,7          394,4       365,8   7,8
  In other countries                      338,2           351,7     (3,8)          331,5       327,8   1,1

  Total                                82.435,8        76.223,4       8,2       66.844,7    62.201,9   7,5


  (*) Weighted by the equity interest of Telefonica in each of the companies.
  (1) Lines in service: includes all in service for Telefonica de Espana, Telefonica CTC Chile, Telefonica
  de Argentina, Telefonica del Peru, Telesp and CanTV.
  (2) Cellular customers: includes all cellular customers of Telefonica Servicios Moviles Espana,
  MediTelecom, Telefonica Movil Chile, TCP Argentina, Telefonica Moviles Peru, CRT Celular, TeleSudeste
  Celular, NewCom Wireless Puerto Rico, Telefonica Moviles Guatemala, Telefonica Moviles El Salvador,
  Telefonica Moviles Mexico, Quam 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-September                    % Chg. 02/01
                                                       2002             2001
  Operating revenues                                 21.467,0         23.083,4      (7,0)
  EBITDA                                              8.928,9          9.641,2      (7,4)
  Operating profit                                    3.805,5          4.157,4      (8,5)
  Income before taxes                               (5.480,1)          1.979,8       c.s.
  Net income                                        (5.036,1)          1.591,0       c.s.
  Net income per share                                 (1,04)             0,33       c.s.

  Avg. No of shares, millions (1)                     4.860,7          4.775,4        1,8


  (1) Average number of shares of the period. It includes the issuance of new shares with respect to convertible
  bonds, weighted for the number of days listed. Bonus capital increases charged to reserves, which do not involve
  any change in the ownership structure, are considered as of 1st of January
  The total number of shares at the end of the period is 4,860,661,286 shares.

  Telefonica Group
  Results by Companies

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                   REVENUES                    EBITDA                     OPERATING PROFIT
                              January-September          January-September               January-September
                           2002      2001     % Chg.   2002    2001    % Chg.   2002    2001           % Chg.
  Telefonica de Espana     7.684,9   7.670,6    0,2   3.370,1 3.483,3  (3,3)   1.333,4 1.368,6  (2,6)
  G.
  Cellular Businesses      7.048,1   6.387,3   10,3   2.905,5 2.590,7   12,2   1.862,9 1.594,0   16,9
  Telefonica               5.434,2   7.605,7 (28,6)   2.635,1 3.856,4 (31,7)   1.055,6 1.913,2 (44,8)
  Latinoamerica G.
  Telefonica Data G.       1.300,4   1.365,4  (4,8)     110,8    32,8  237,7    (43,5) (102,1) (57,4)
  Terra-Lycos G.             465,4     526,5 (11,6)   (116,3) (211,9) (45,1)   (226,8) (321,3) (29,4)
  Directories Businesses     415,6     421,4  (1,4)     116,6    82,6   41,1      95,4    63,1   51,1
  Admira Media G.            724,2   1.005,8 (28,0)      77,6    82,2  (5,5)      37,9    24,1   56,9
  Atento G.                  435,6     471,5  (7,6)      30,5    36,9 (17,3)    (29,7)  (22,7)   30,9
  Others affiliates          737,1     446,5   65,1   (160,9) (189,1) (14,9)   (291,3) (291,8)  (0,2)
  Eliminations           (2.778,6) (2.817,6)  (1,4)    (40,2) (122,7) (67,3)      11,7  (67,8)  c.s.

  Group                   21.467,0  23.083,4  (7,0)   8.928,9 9.641,2  (7,4)   3.805,5 4.157,4  (8,5)





  Telefonica S.A.
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                      January-September                    July-September
                                                  2002       2001     % Chg.     2002      2001          % Chg.
  Operating revenues                             21.467,0   23.083,4   (7,0)     6.831,5   7.780,7  (12,2)
  Internal expend capitalized in fixed assets       397,7      483,8  (17,8)       164,2     160,2     2,5
  (1)
  Operating expenses                           (12.588,4) (13.326,6)   (5,5)   (4.045,5) (4.411,8)   (8,3)
  Supplies                                      (5.206,7)  (5.116,5)     1,8   (1.726,5) (1.663,5)     3,8
  Personnel expenses                            (3.641,6)  (3.969,0)   (8,2)   (1.123,1) (1.282,5)  (12,4)
  Subcontracts                                  (3.426,4)  (3.841,4)  (10,8)   (1.107,2) (1.319,6)  (16,1)
  Taxes                                           (313,8)    (399,8)  (21,5)      (88,6)   (146,2)  (39,4)
  Other operating income (expense) net            (347,3)    (599,4)  (42,1)      (97,0)   (244,5)  (60,3)

  EBITDA                                          8.928,9    9.641,2   (7,4)     2.853,2   3.284,6  (13,1)

  Depreciation and amortization                 (5.123,4)  (5.483,8)   (6,6)   (1.562,7) (1.865,1)  (16,2)

  Operating profit                                3.805,5    4.157,4   (8,5)     1.290,5   1.419,4   (9,1)

  Profit from associated companies                (415,5)    (278,1)    49,4     (162,5)    (97,8)    66,3
  Financial income (expense) net                (2.010,9)  (1.346,8)    49,3     (401,9)   (420,0)   (4,3)
  Amortization of goofwill                        (503,0)    (645,7)  (22,1)     (157,9)   (162,5)   (2,8)
  Extraordinary income (expense) net            (6.356,3)       92,9  c.s.       (199,0)   (110,4)    80,2

  Income before taxes                           (5.480,1)    1.979,8  c.s.         369,2     628,8  (41,3)

  Income taxes                                      206,3    (655,0)  c.s.         103,5   (195,9)  c.s.

  Net income before minority interests          (5.273,8)    1.324,8  c.s.         472,7     432,9     9,2

  Minority interests                                237,8      266,2  (10,7)        65,5       9,5   586,5

  Net income                                    (5.036,1)    1.591,0  c.s.         538,1     442,4    21,6

  Average shares (millions) (2)                   4.860,7    4.775,4     1,8     4.860,7   4.860,7     0,0
  Net income per share                             (1,04)       0,33  c.s.          0,11      0,09    21,6


  (1) Including work in process.
  (2) Average number of shares of the period. It includes the issuance of new shares with respect to
  convertible bonds, weighted for the number of days listed. Bonus capital increases charged to reserves,
  which do not involve any change in the ownership structure, are considered as of 1st of January
  The total number of shares at the end of the period is 4,860,661,286
  Telefonica S.A.

  Consolidated Balance Sheet

  Unaudited figures                                                                               (Euros in millions)
                                                                September                    % Chg. 02/01
                                                            2002        2001
  Subscribed shares not paid-in                              327,2       391,8        (16,5)
  Long-term assets                                        56.091,6    65.224,8        (14,0)
  Start up expenses                                          626,4       654,5         (4,3)
  Intangible net assets                                   16.637,3    20.409,5        (18,5)
  Fixed net assets                                        26.843,8    36.520,6        (26,5)
  Investment                                              11.984,1     7.640,2          56,9

  Goodwill on consolidation                                7.488,5     9.320,2        (19,7)
  Deferred expenses                                          632,3       829,8        (23,8)

  Current assets                                          10.798,6    15.798,8        (31,6)
  Inventories                                                610,9       824,8        (25,9)
  Accounts receivable                                      6.862,1    10.139,6        (32,3)
  Short-term investments                                   2.279,8     3.043,3        (25,1)
  Cash and banks                                             514,6       580,0        (11,3)
  Others                                                     531,1     1.211,1        (56,1)

  Assets = Liabilities                                    75.338,2    91.565,4        (17,7)

  Shareholder's equity                                    17.184,8    26.208,7        (34,4)
  Minority interests                                       9.198,6     8.214,2          12,0
  Badwill on consolidation                                    12,6        23,5        (46,2)
  Deferred income                                          1.301,8     1.252,6           3,9
  Provisions for risks and expenses                       10.026,1     6.386,1          57,0
  Long-term debt                                          20.782,6    22.526,4         (7,7)
  Accrued taxes payable                                    1.794,7     2.470,3        (27,3)
  Short-term debt including current maturities             6.777,1    10.827,4        (37,4)
  Interest payable                                           318,5       332,1         (4,1)
  Other creditors                                          7.941,3    13.324,2        (40,4)

  Financial Data
  Consolidated net debt (1)                               24.575,0    29.730,5        (17,3)
  Consolidated debt ratio (2)                                45,5%       43,9%       1,6p.p.


  (1) Net debt: Long-term debt (excluding debt with minority partners) + Short-term debt including current maturities
  - Short-term investments - Cash and banks.
  (2) Debt ratio: Net debt /(Shareholders' equity + Minority interests + Deferred income + Accrued taxes payable +
  Net debt)
  Telefonica de Espana Group
  Selected Operating Data

  Unaudited figures
                                                                           September                  % Chg. 02/01
                                                                   2002                2001
  Lines in service (thousands) (1)                                  21.118,8            20.885,7                1,1
  PSTN lines                                                        15.627,1            16.188,3              (3,5)
  ISDN basic access                                                  868.734             773.985               12,2
  ISDN primary access                                                 16.281              15.493                5,1
  ADSL connections                                                   747.019             223.158              234,7
  Employees                                                           40.851              40.948              (0,2)
  Lines/employees (1)                                                  517,0               510,1                1,4
  Traffic (millions of minutes)                                      108.040             102.306                5,7
  % ADSL coverage (2)                                                  82,0%               81,1%           0,9 p.p.


  (1) Basic telephony lines (including public telephones, Ibercom, ISDN -basic access-, ADSL connections and
  connections lines with PABX)
  (2) Degree of effective ADSL coverage for Basic Service.

  Telefonica de Espana Group
  Operating Revenues (Individual)

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                 January-September                     July-September
                                              2002     2001    % Chg.     2002     2001             % Chg.
  Revenue derived from usage                 3.891,1  4.372,4  (11,0)    1.288,3  1.405,3    (8,3)
  Local                                      1.185,8  1.360,3  (12,8)      347,5    403,0   (13,8)
  Provincial                                   361,4    423,7  (14,7)      116,2    140,4   (17,2)
  Domestic long distance                       499,8    700,1  (28,6)      151,6    222,0   (31,7)
  International long distance (outgoing)       287,7    509,4  (43,5)       92,3    172,2   (46,4)
  (1)
  Fixed to mobile                            1.122,2  1.117,5     0,4      385,7    375,7      2,7
  Interconnection International (Incoming)     218,1    224,1   (2,7)       73,8     83,8   (12,0)
  Interconnection National Operators (1)       322,4    374,8  (14,0)      118,7    128,9    (7,9)
  Others (2)                                 (106,4)  (337,6)  (68,5)        2,5  (120,7)  (102,1)

  Monthly fee                                2.845,4  2.461,3    15,6      955,5    822,8     16,1
  Connection fee                               197,2    200,0   (1,4)       59,1     69,4   (14,8)
  Customer equipments                          236,8    200,6    18,0       72,6     64,5     12,5
  Others                                       183,6    164,3    11,7       48,3     51,0    (5,3)

  Total operating revenues                   7.354,0  7.398,6   (0,6)    2.423,8  2.413,0      0,4


  (1) Net of foreign participation
  (2) Including discounts, special services, IRIS services and others.
  Note: 2001 local revenues include Internet revenues billed at destination.


  Telefonica de Espana Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                 January-September                      July-September
                                              2002      2001     % Chg.    2002      2001             % Chg.
  Operating revenues                          7.684,9   7.670,6    0,2     2.553,7   2.510,8    1,7
  Telefonica de Espana                        7.354,0   7.398,6  (0,6)     2.423,8   2.413,0    0,4
  Others and eliminations                       330,9     272,0   21,6       129,9      97,8   32,8
  Internal expend capitalized in fixed          125,0     130,3  (4,1)        42,9      41,4    3,8
  assets (1)
  Operating expenses                        (4.375,1) (4.183,1)    4,6   (1.497,7) (1.432,4)    4,6
  Other operating income (expense) net         (64,6)   (134,6) (52,0)      (14,4)    (76,7) (81,2)

  EBITDA                                      3.370,1   3.483,3  (3,3)     1.084,6   1.043,1    4,0

  Depreciation and amortization             (2.036,7) (2.114,7)  (3,7)     (683,4)   (733,3)  (6,8)

  Operating profit                            1.333,4   1.368,6  (2,6)       401,2     309,8   29,5

  Profit from associated companies              (1,3)     (1,3)  (0,1)       (0,4)     (0,7) (42,6)
  Financial income (expense) net              (291,6)   (299,7)  (2,7)      (90,2)    (95,6)  (5,6)
  Amortization of goodwill                      (7,3)     (0,5)  n.s.        (0,8)     (0,4)  135,4
  Extraordinary income (expense) net          (247,1)     164,8  c.s.       (99,1)      35,2  c.s.

  Income before taxes                           786,1   1.231,9 (36,2)       210,6     248,4 (15,2)

  Income taxes                                (165,8)   (330,4) (49,8)      (57,7)    (67,3) (14,3)

  Net income before minority interests          620,3     901,6 (31,2)       153,0     181,1 (15,5)

  Minority interests                            (0,1)     (0,0)  n.s.        (0,0)     (0,0)  n.s.

  Net income                                    620,2     901,5 (31,2)       152,9     181,0 (15,6)


  (1) Including works in process

  Telefonica Latinoamerica Group
  Companies Financial Data

  Unaudited figures                                                                               (Euros in millions)
                                                                        January-September
                                                2002          2001                          % Chg
  Telesp
  Operating revenues                          2.998,3         3.273,1               (8,4)
  EBITDA                                      1.540,9         1.701,6               (9,4)
  EBITDA margin                                 51,4%           52,0%          (0,6 p.p.)

  Telefonica de Argentina
  Operating revenues                            624,3         2.272,5              (72,5)
  EBITDA                                        312,6         1.239,1              (74,8)
  EBITDA margin                                 50,1%           54,5%          (4,5 p.p.)

  Telefonica CTC Chile
  Operating revenues                            837,1           988,2              (15,3)
  EBITDA                                        346,0           425,3              (18,6)
  EBITDA margin                                 41,3%           43,0%          (1,7 p.p.)

  Telefonica del Peru
  Operating revenues                            937,7         1.009,5               (7,1)
  EBITDA                                        437,6           510,2              (14,2)
  EBITDA margin                                 46,7%           50,5%          (3,9 p.p.)


  Note: EBITDA before management fees. Data for Telefonica de Argentina include the ISP business of Advance, while
  those of Telefonica CTC Chile and Telefonica del Peru include Sonda and CableMagico, respective
  Note: TASA modified its fiscal year, therefore, the data are for the January-September '01 and January-September
  '02 periods

  Telefonica Latinoamerica Group
  Selected Operating Data

  Unaudited figures
                                                                                  January-September
                                                                         2002              2001           % Chg.
  Lines in service (thousands)                                            21.491            21.611            (0,6)
  Telesp                                                                  12.561            12.612            (0,4)
  Telefonica de Argentina                                                  4.423             4.521            (2,2)
  Telefonica CTC Chile                                                     2.721             2.752            (1,1)
  Telefonica del Peru                                                      1.785             1.725              3,5

  ADSL connections                                                       404.065           170.845            136,5
  Telesp                                                                 306.539           142.271            115,5
  Telefonica de Argentina                                                 31.522            15.196            107,4
  Telefonica CTC Chile                                                    41.270             8.432            389,4
  Telefonica del Peru (1)                                                 24.734             4.946            400,1

  % ADSL coverage
  Telesp                                                                     78%               66%        12,3 p.p.
  Telefonica de Argentina                                                    57%               57%         0,0 p.p.
  Telefonica CTC Chile                                                       63%               46%        17,0 p.p.
  Telefonica del Peru                                                        48%               44%         4,0 p.p.

  Total traffic (million of minutes) (2)                                 112.323           112.822            (0,4)
  Telesp                                                                  61.183            58.064              5,4
  Telefonica de Argentina                                                 24.675            26.725            (7,7)
  Telefonica CTC Chile                                                    19.439            20.139            (3,5)
  Telefonica del Peru                                                      7.026             7.894           (11,0)

  Employees (3)                                                           27.388            32.517           (15,8)
  Telesp                                                                  10.015            12.495           (19,8)
  Telefonica de Argentina                                                  8.418             8.800            (4,3)
  Telefonica CTC Chile                                                     3.934             6.182           (36,4)
  Telefonica del Peru                                                      5.021             5.040            (0,4)

  Lines/Employees (4)                                                        785               665             18,1
  Telesp                                                                   1.254             1.009             24,3
  Telefonica de Argentina                                                    525               514              2,3
  Telefonica CTC Chile                                                       805               799              0,8
  Telefonica del Peru                                                        591               468             26,3


  Note: The data for Telefonica CTC Chile are for Fixed Telephony (FTO) and Sonda. TdP data include FTO and
  Cablemagico. TASA modified its fiscal year, therefore, the data are for the January-September '01 and
  January-September '02 periods
  (1) For TdP, includes CABLENET lines in service.
  (2) Includes total outgoing and incoming traffic billed: local, DLD and ILD and public telephones, except in
  Telesp
  (3) Telesp includes effective endowment made by Telesp, Assist and long distance in both September 2002 and
  September 2001. TASA includes effective endowment made by including Interactiva, a criterion adopted
  retroactively. In CTC, the number of employees as of September 2001 includes employees assigned to CSC for the
  current fiscal year.
  (4) Ratio calculated with wireline company staff

  Telefonica Latinoamerica Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                   January-September                     July-September
                                                2002      2001     % Chg.   2002     2001             % Chg.
  Operating revenues                            5.434,2   7.605,7 (28,6)   1.460,2   2.427,7 (39,9)
  Internal expend capitalized in fixed assets      52,5     143,4 (63,4)       9,7      54,8 (82,3)
  (1)
  Operating expenses                          (2.636,4) (3.575,5) (26,3)   (721,5) (1.098,2) (34,3)
  Other operating income (expense) net          (215,2)   (317,2) (32,1)    (40,4)   (107,7) (62,5)

  EBITDA                                        2.635,1   3.856,4 (31,7)     708,0   1.276,6 (44,5)

  Depreciation and amortization               (1.579,5) (1.943,2) (18,7)   (413,2)   (648,0) (36,2)

  Operating profit                              1.055,6   1.913,2 (44,8)     294,9     628,6 (53,1)

  Profit from associated companies                (4,6)       7,5  c.s       (9,1)       6,2  c.s.
  Financial income (expense) net              (1.101,6)   (597,0)   84,5    (69,3)   (173,4) (60,0)
  Amortization of goodwill                       (67,3)    (59,6)   12,9    (22,1)    (19,4)   13,8
  Extraordinary income (expense) net            (109,5)      13,9  c.s      (61,1)    (78,2) (21,9)

  Income before taxes                           (227,4)   1.277,9  c.s.      133,4     363,8 (63,3)

  Income taxes                                     52,6   (319,6)  c.s     (101,7)   (118,5) (14,2)

  Net income before minority interests          (174,8)     958,3  c.s.       31,7     245,3 (87,1)

  Minority interests                             (20,8)   (107,0) (80,6)     (3,7)    (47,2) (92,2)

  Net income                                    (195,6)     851,3  c.s.       28,0     198,1 (85,9)


  (1) Including works in process

     Telefonica Moviles Group
     Selected Operating Data

     Unaudited figures                                                                                 (Thousands)
                                                                         CELLULAR CUSTOMERS
                                                       September - 2002       % Chg. 02/01        Weighted(1)
     T Moviles Espana                                         18.127                 16,0     16.755
     Celular CRT                                               1.981                 19,3        749
     TeleSudeste Celular                                       3.296                 15,2      2.546
     TeleLeste Celular                                           932                 20,2        239
     TCP Argentina                                             1.642               (12,2)      1.486
     T Moviles Peru                                            1.228                 19,5      1.112
     TEM El Salvador                                             218                (8,9)        182
     TEM Guatemala                                               113               (27,4)        105
     NewCom Wireless Puerto Rico (2)                             175                (5,9)
     Telefonica Moviles Mexico                                 2.254                104,3      1.917
     Medi Telecom                                              1.511                 69,4        426
     Telefonica Movil Chile (3)                                1.761                 19,0        769
     Quam                                                        223                 n.s.        118

     Total Managed                                            33.462                 20,1     26.403


     (1) Number of lines weighted for the Telefonica Group's stake in each company.
     (2) Managed by TEM
     (3) Managed by TEM and part-owned by the Telefonica Group.

    Telefonica Moviles Espana
    Selected Operating Data

    Unaudited figures                                                                                  (Thousands)
                                                                                January-September
                                                                   2002          2001              % Chg.
    Cellular subscribers                                         18.127         15.621         16,0
    Contract                                                      6.130          5.098         20,2
    Prepaid                                                      11.997         10.523         14,0

    Subscribers net adds in year to date (a)                      2.506          1.952         28,4
    Contract                                                      1.032            331        211,8
    Prepaid                                                       1.474          1.621        (9,1)

    TME Penetration (b)                                           43,3%          38,6%          4,7
    Total airtime minutes, in millions (a)                       23.475         19.744         18,9
    SMS                                                           6.213          4.351         42,8
    Employees                                                     4.373          4.140          5,6


    (a) January-September accumulated data.
    (b) Telefonica Moviles Espana cellular lines / 100 inhabitants

    Telefonica Moviles Group: Participated Companies
    Selected Operating Data

    Unaudited figures                                                                                   (Thousands)
                                                                           January-September
                                                           2002            2001                  % Chg.
    Europe and Mediterranean area customers                19.861          16.513      20,3
    Contract                                                6.326           5.153      22,8
    Prepaid                                                13.536          11.359      19,2

    Latin America customers (1)                            11.665           9.694      20,3
    Contract                                                3.176           3.232     (1,7)
    Prepaid                                                 8.490           6.462      31,4

    Total airtime minutes (2)                            33.018,2        29.254,7      12,9


    (1) Includes only Telefonica Moviles participations
    (2) January-September accumulated air minutes of TEM fully consolidated companies

   Telefonica Moviles Group
   Selected Financial Data

   Unaudited figures                                                                            (Euros in millions)
                                                                           January - September
                                                            2002           2001                  % Chg
   Telefonica Moviles Espana
   Operating Revenues                                       5.028,1       4.217,3          19,2
   EBITDA                                                   2.607,2       2.098,9          24,2
   EBITDA Margin                                              51,9%         49,8%      2,1 p.p.

   Brazilian Companies (1)
   Operating Revenues                                         944,2         911,0           3,6
   EBITDA                                                     366,2         359,4           1,9
   EBITDA Margin                                              38,8%         39,5%    (0,7 p.p.)

   Telefonica Moviles Mexico (2)
   Operating Revenues                                         376,7         124,0          n.s.
   EBITDA                                                      34,8          14,1          n.s.
   EBITDA Margin                                               9,2%         11,4%          n.s.

   TCP Argentina
   Operating Revenues                                         149,6         533,1        (71,9)
   EBITDA                                                      36,2          90,7        (60,1)
   EBITDA Margin                                              24,2%         17,0%        7 p.p.

   Telefonica Moviles Peru
   Operating Revenues                                         208,0         211,7         (1,7)
   EBITDA                                                      69,3          67,2           3,1
   EBITDA Margin                                              33,3%         31,7%      1,6 p.p.

   T. Moviles Guatemala and El Salvador
   Operating Revenues                                         142,8         141,7           0,8
   EBITDA                                                      27,8          15,6          78,2
   EBITDA Margin                                              19,5%         11,0%      8,5 p.p.


   (1) TeleSudeste Celular, CRT Celular and TeleLeste.
   (2) Telefonica Mexico includes Pegaso in 2002

  Mobile Business of Telefonica Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                 January-September                      July-September
                                              2002      2001     % Chg.    2002      2001             % Chg.
  Operating revenues                          7.048,1   6.387,3   10,3     2.371,1   2.291,9    3,5
  Internal expend capitalized in fixed           65,8      83,6 (21,3)        15,9      28,2 (43,6)
  assets (1)
  Operating expenses                        (4.142,1) (3.751,9)   10,4   (1.376,3) (1.293,7)    6,4
  Other operating income (expense) net         (66,3)   (128,3) (48,3)      (17,8)    (26,3) (32,4)

  EBITDA                                      2.905,5   2.590,7   12,2       992,9   1.000,1  (0,7)

  Depreciation and amortization             (1.042,6)   (996,7)    4,6     (332,5)   (332,3)    0,1

  Operating profit                            1.862,9   1.594,0   16,9       660,4     667,8  (1,1)

  Profit from associated companies            (118,1)    (96,0)   23,1      (52,4)    (25,2)  107,7
  Financial income (expense) net              (237,4)   (281,9) (15,8)       (5,8)    (68,3) (91,5)
  Amortization of goodwill                     (71,6)    (44,0)   62,8      (23,1)    (18,0)   28,2
  Extraordinary income (expense) net        (4.888,8)    (88,0)  n.s.         21,4    (53,0)  c.s.

  Income before taxes                       (3.453,0)   1.084,1  c.s.        600,5     503,3   19,3

  Income taxes                                (604,0)   (495,5)   21,9     (262,5)   (234,8)   11,8

  Net income before minority interests      (4.057,0)     588,6  c.s.        338,0     268,5   25,9

  Minority interests                            120,5      55,8  115,8        68,0      15,1  351,3

  Net income                                (3.936,5)     644,5  c.s.        406,1     283,5   43,2


  (1) Including wotks in progress.

  Telefonica Moviles Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                 January-September                      July-September
                                              2002      2001     % Chg.    2002      2001             % Chg.
  Operating revenues                          6.828,3   6.168,5   10,7     2.312,6   2.234,6    3,5
  Internal expend capitalized in fixed           65,8      83,6 (21,3)        15,9      28,2 (43,6)
  assets (1)
  Operating expenses                        (3.994,9) (3.605,2)   10,8   (1.337,8) (1.261,0)    6,1
  Other operating income (expense) net         (60,3)   (117,6) (48,8)      (16,2)    (24,0) (32,7)

  EBITDA                                      2.838,9   2.529,3   12,2       974,5     977,7  (0,3)

  Depreciation and amortization               (988,9)   (945,5)    4,6     (315,6)   (317,4)  (0,6)

  Operating profit                            1.850,0   1.583,7   16,8       659,0     660,3  (0,2)

  Profit from associated companies            (118,1)    (96,0)   23,1      (52,4)    (25,2)  107,7
  Financial income (expense) net              (201,2)   (236,5) (14,9)         3,9    (51,4)  c.s.
  Amortization of goodwill                     (61,2)    (30,4)  101,1      (20,3)    (14,3)   42,2
  Extraordinary income (expense) net        (4.888,4)    (77,9)  n.s.         20,8    (50,4)  c.s.

  Income before taxes                       (3.418,8)   1.142,9  c.s.        611,0     519,0   17,7

  Income taxes                                (607,4)   (495,4)   22,6     (263,5)   (232,6)   13,3

  Net income before minority interests      (4.026,2)     647,5  c.s.        347,5     286,4   21,3

  Minority interests                            103,2      22,7  354,9        62,7       5,0  n.s.

  Net income                                (3.923,0)     670,2  c.s.        410,2     291,4   40,8


  (1) Including works in process


  Telefonica Data Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                    January-September                    July-September
                                                2002      2001     % Chg.    2002    2001            % Chg.
  Operating revenues                            1.300,4   1.365,4   (4,8)     389,1   442,8  (12,1)
  Internal expend capitalized in fixed assets       6,3       8,9  (29,1)       0,0   (1,4)  n.s.
  (1)
  Operating expenses                          (1.188,2) (1.337,5)  (11,2)   (327,6) (428,3)  (23,5)
  Other operating income (expense) net            (7,7)     (4,0)    89,5       5,2   (2,5)  c.s.

  EBITDA                                          110,8      32,8   237,7      66,7    10,6   526,7

  Depreciation and amortization                 (154,3)   (134,9)    14,4    (44,1)  (49,5)  (10,9)

  Operating profit                               (43,5)   (102,1)  (57,4)      22,6  (38,9)  c.s.

  Profit from associated companies               (26,7)       0,6  c.s.      (12,2)     1,4  c.s.
  Financial income (expense) net                 (65,1)    (36,3)    79,5    (17,6)  (12,8)    36,8
  Amortization of goodwill                       (60,4)    (63,4)   (4,7)    (15,5)  (22,7)  (31,9)
  Extraordinary income (expense) net            (741,3)     (0,7)  n.s.      (33,1)   (0,1)  n.s.

  Income before taxes                           (937,0)   (201,9)   364,1    (55,8)  (73,1)  (23,6)

  Income taxes                                    419,6      10,6  n.s.       339,3    13,8  n.s.

  Net income before minority interests          (517,5)   (191,3)   170,6     283,5  (59,3)  c.s.

  Minority interests                               37,4      44,3  (15,7)     (0,6)    16,4  c.s.

  Net income                                    (480,1)   (146,9)   226,8     282,9  (42,9)  c.s.


  (1) Including works in process

  Admira Media Group
  Consolidated Income Statement

  Unaudited figures                                                                                       (Euros in
                                                                                                          millions)
                                                   January-September                   July-September
                                                2002    2001    % Chg.    2002    2001             % Chg.
  Operating revenues                             724,2 1.005,8  (28,0)     245,5   322,2  (23,8)
  Internal expend capitalized in fixed assets      0,3     0,2   110,8       0,0   (0,4)  n.s.
  (1)
  Operating expenses                           (648,3) (924,6)  (29,9)   (224,2) (307,9)  (27,2)
  Other operating income (expense) net             1,4     0,8    70,8     (4,4)   (0,9)   396,1

  EBITDA                                          77,6    82,2   (5,5)      16,9    13,0    30,4

  Depreciation and amortization                 (39,7)  (58,0)  (31,5)     (5,7)  (18,5)  (69,3)

  Operating profit                                37,9    24,1    56,9      11,3   (5,5)  c.s.

  Profit from associated companies             (178,3) (112,4)    58,6    (62,0)  (55,5)    11,6
  Antena 3 TV                                   (32,9)    16,4  c.s.      (23,6)   (5,1)   366,8
  Via Digital                                  (100,4) (102,8)   (2,3)    (33,8)  (34,1)   (0,9)
  Others                                        (45,0)  (26,1)    72,4     (4,5)  (16,4)  (72,3)
  Financial income (expense) net               (114,0)  (73,1)    55,8    (39,4)  (24,3)    62,3
  Amortization of goodwill                      (69,5)  (81,9)  (15,2)    (24,0)  (18,3)    31,2
  Extraordinary income (expense) net           (168,3)  (59,3)   183,9      24,0  (16,6)  c.s.

  Income before taxes                          (492,2) (302,7)    62,6    (90,1) (120,2)  (25,0)

  Income taxes                                   119,7    31,2   283,3      21,8    15,1    44,8

  Net income before minority interests         (372,5) (271,4)    37,2    (68,3) (105,1)  (35,0)

  Minority interests                             (1,7)    11,6  c.s.       (0,3)     1,8  c.s.

  Net income                                   (374,2) (259,8)    44,0    (68,5) (103,4)  (33,7)


  (1) Including works in process
  Note: Onda Cero consolidated within Antena 3 in 2002.

    Terra-Lycos Group
    Selected Operating Data

    Unaudited figures
                                                                         September 2002  September 2001    % Chg
    Total Subscribers (million)                                                  5,3            n.s.        n.s.
    Access Subscribers (million)                                                 4,2             4,3       (2,3)
    % Pay                                                                        33%             30%         3,0
    % Free                                                                       67%             70%       (3,0)
    ADSL (thousand)                                                              342             174        96,6
    Spain                                                                        125              91        37,4
    Latam                                                                        217              83       163,0

    Comm. Services+Portal Subscribers (million)                                  1,1            n.s.        n.s.

    Total Pay Subscribers (million)                                              2,5            n.s.        n.s.
    Access                                                                       55%            n.s.        n.s.
    Communication Services+Portal                                                45%            n.s.        n.s.

    Average daily page views (million)                                           390             481      (18,9)
    Unique users (million)                                                       118             109         8,3




  Terra-Lycos Group
  Consolidated Income Statement

  Unaudited figures                                                                                       (Euros in
                                                                                                          millions)
                                                   January-September                   July-September
                                                2002    2001    % Chg.    2002    2001             % Chg.
  Operating revenues                             465,4   526,5  (11,6)     144,9   169,9  (14,7)
  Internal expend capitalized in fixed assets      0,8     0,4   108,0       0,2     0,1   121,5
  (1)
  Operating expenses                           (567,1) (721,6)  (21,4)   (174,5) (219,6)  (20,6)
  Other operating income (expense) net          (15,4)  (17,2)  (10,5)     (2,2)   (6,6)  (66,8)

  EBITDA                                       (116,3) (211,9)  (45,1)    (31,5)  (56,3)  (44,0)

  Depreciation and amortization                (110,4) (109,4)     1,0    (33,8)  (35,7)   (5,2)

  Operating profit                             (226,8) (321,3)  (29,4)    (65,4)  (91,9)  (28,9)

  Profit from associated companies              (60,3) (173,0)  (65,2)    (21,2)  (46,7)  (54,6)
  Financial income (expense) net                  49,3    96,6  (48,9)      15,6    27,7  (43,6)
  Amortization of goodwill                     (191,1) (320,3)  (40,3)    (62,2)  (49,2)    26,3
  Extraordinary income (expense) net               0,9  (31,4)  c.s.         3,8  (24,7)  c.s.

  Income before taxes                          (427,9) (749,4)  (42,9)   (129,3) (185,0)  (30,1)

  Income taxes                                    92,7   275,0  (66,3)      30,4   101,7  (70,1)

  Net income before minority interests         (335,2) (474,4)  (29,4)    (98,9)  (83,3)    18,7

  Minority interests                               3,0     1,1   170,2       0,2     0,4  (60,0)

  Net income                                   (332,2) (473,3)  (29,8)    (98,7)  (82,9)    19,1


  (1) Including works in process

     TPI Group - Yellow Pages
     Operating figures in Spain

     Unadited figures
                                                                                             September
                                                                                    2002       2001        % Chg
     Books Published
     Yellow Pages                                                                      56 *       48,0
     White Pages                                                                       46         46,0

     (Euro million)
     Revenue Breakdown
     Advertising                                                                    271,6        259,1       4,8
     Publishing                                                                     252,9        243,9       3,7
     Yellow Pages                                                                   206,7        200,7       3,0
     White Pages                                                                     45,2         42,2       7,2
     Others                                                                           1,0          1,1     (2,7)
     Internet                                                                        16,2         12,8      27,0
     Operator Assisted Yellow Pages                                                   2,5          2,4       1,4
     Operator                                                                        18,9         20,3     (7,1)
     Other                                                                            3,3          3,1       4,7


     * Includes business/residential splits

  Directories Business of Telefonica Group
  Consolidated Income Statement

  Unaudited figures                                                                                       (Euros in
                                                                                                          millions)
                                                   January-September                   July-September
                                                2002    2001    % Chg.    2002    2001             % Chg.
  Operating revenues                             415,6   421,4   (1,4)     218,9   228,6   (4,3)
  Internal expend capitalized in fixed assets      0,0    13,5  n.s.         0,0    13,2  n.s.
  (1)
  Operating expenses                           (270,1) (327,7)  (17,6)   (117,7) (154,8)  (24,0)
  Other operating income (expense) net          (28,8)  (24,6)    16,9    (15,1)  (13,6)    11,3

  EBITDA                                         116,6    82,6    41,1      86,1    73,4    17,2

  Depreciation and amortization                 (21,3)  (19,6)     8,8     (6,1)   (9,7)  (37,4)

  Operating profit                                95,4    63,1    51,1      80,0    63,7    25,5

  Profit from associated companies               (1,1)   (0,8)    30,4     (0,4)   (0,6)  (40,4)
  Financial income (expense) net                   4,1  (12,4)  c.s.         9,0   (3,9)  c.s.
  Amortization of goodwill                       (1,3)   (1,8)  (29,2)     (0,4)   (0,7)  (38,3)
  Extraordinary income (expense) net             (0,8)     0,2  c.s.       (0,3)   (1,9)  (85,5)

  Income before taxes                             96,3    48,3    99,5      87,9    56,6    55,2

  Income taxes                                  (32,0)  (24,3)    31,8    (23,9)  (25,0)   (4,7)

  Net income before minority interests            64,3    24,0   167,9      64,1    31,6   102,7

  Minority interests                             (1,4)     6,3  c.s.      (14,0)   (3,0)   372,4

  Net income                                      62,9    30,4   107,3      50,1    28,6    74,9


  (1) Including works in process
  Note: Includes all directory businesses of Telefonica Group from January 1, 2001

   TPI-Paginas Amarillas Group
   Consolidated Income Statement

   Unaudited figures                                                                             (Euros in millions)
                                              January-September                       July-September
                                           2002       2001    % Chg.    2002     2001              % Chg.
   Operating revenues                        408,9      375,3   8,9      217,9    222,5   (2,1)
   Operating expenses                      (291,9)    (282,7)   3,3    (131,4)  (142,0)   (7,5)

   EBITDA                                    117,0       92,6  26,3       86,5     80,6     7,4

   Depreciation and amortization            (20,4)     (16,2)  25,7      (6,1)    (8,1)  (24,0)

   Operating profit                           96,6       76,4  26,4       80,4     72,5    10,9

   Profit from associated companies          (1,1)      (0,8)  30,5      (0,3)    (0,4)   (3,6)
   Financial income (expense) net              4,1      (8,6) c.s.         9,8    (2,9)  c.s.
   Amortization of goodwill                  (2,3)      (1,6)  41,8      (0,8)    (0,5)    42,9
   Consolidation adjustments                   1,1        0,0 n.s.         0,4      0,0  n.s.
   Extraordinary income (expense) net        (0,5)        0,3 c.s.       (0,3)    (0,5)  (34,1)

   Income before taxes                        97,9       65,7  48,9       89,2     68,3    30,7

   Income taxes                             (32,0)     (24,2)  32,4     (23,9)   (25,7)   (7,1)

   Net income before minority interests       65,9       41,6  58,5       65,3     42,7    53,1

   Minority interests                        (1,7)        4,9 c.s.      (14,2)    (3,9)   264,9

   Net income                                 64,3       46,5  38,3       51,1     38,7    32,0




    Atento Group
    Consolidated Income Statement

    Unaudited figures                                                                           (Euros in millions)
                                              January-September                      July-September
                                           2002     2001    % Chg.     2002     2001              % Chg.
    Operating revenues                      435,6    471,5   (7,6)      123,6    154,5  (20,0)
    Operating expenses                    (401,5)  (432,7)   (7,2)    (109,4)  (141,6)  (22,7)
    Other operating income (expense) net    (3,6)    (1,9)    91,7        0,3    (1,5)  c.s.

    EBITDA                                   30,5     36,9  (17,3)       14,5     11,4    27,3

    Depreciation and amortization          (60,2)   (59,6)     1,0     (16,3)   (23,2)  (30,0)

    Operating profit                       (29,7)   (22,7)    30,9      (1,8)   (11,9)  (84,9)

    Financial income (expense) net         (67,7)   (43,7)    55,0     (22,0)   (15,6)    41,3
    Amortization of goodwill                (6,3)    (6,3)     0,3      (2,0)    (2,1)   (6,5)
    Extraordinary income (expense) net      (1,0)   (18,6)  (94,7)        1,9   (17,8)  c.s.

    Income before taxes                   (104,7)   (91,2)    14,7     (23,9)   (47,4)  (49,5)

    Income taxes                             21,0     16,2    29,8        7,2      9,8  (26,7)

    Net income before minority interests   (83,7)   (75,0)    11,5     (16,8)   (37,6)  (55,4)

    Minority interests                        0,6      1,7  (63,7)      (0,1)      0,6  c.s.

    Net income                             (83,0)   (73,4)    13,2     (16,9)   (37,0)  (54,4)






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