3rd Quarter Results- Part 2

Telefonica SA
13 November 2003


  Telefonica Group
  Market Size

  Unaudited figures                                                     September                (Thousands)
                                                  Total                         Weighted (*)
                                           2003           2002      % Chg.    2003        2002          % Chg.
  Lines in service (1)                      43,411.1       43,127.4    0.7    37,696.2    37,303.0   1.1
  In Spain                                  18,875.3       18,712.0    0.9    18,875.3    18,712.0   0.9
  In other countries                        24,535.8       24,415.4    0.5    18,820.9    18,591.0   1.2
  Cellular customers (2)                    50,262.0       35,757.8   40.6    29,751.4    26,459.2  12.4
  In Spain                                  19,107.9       18,127.0    5.4    17,663.4    16,754.8   5.4
  In other countries                        31,154.0       17,630.7   76.7    12,088.0     9,704.4  24.6
  Total (3)                                 94,028.1       79,223.4   18.7    67,792.5    64,090.5   5.8


  (*) Weighted by the equity interest of Telefonica in each of the companies. After the Via
  Digital-Sogecable merger, for comparison purposes, the costumers from the platform TV are not included
  in 2002.
  (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 (the Joint
  Venture with Portugal Telecom in Brazil), NewCom Wireless Puerto Rico, Telefonica Moviles Guatemala,
  Telefonica Moviles El Salvador, Telefonica Moviles Mexico and CanTV Celular.
  (3) Includes Pay TV customers of Cable Magico in Peru.












  Telefonica Group
  Selected Financial Data

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                                                             January - September
                                                                          2003                 2002    %Chg.
  Operating revenues                                                  20,833.2             21,467.0   (3.0)
  EBITDA                                                               9,294.1              8,928.9     4.1
  Operating profit                                                     4,591.4              3,805.5    20.7
  Income before taxes                                                  3,301.1            (5,480.1)     c.s
  Net income                                                           2,014.4            (5,036.1)     c.s
  Net income per share                                                     0.4                (1.0)     c.s
  Avg. No of shares, millions (1)                                      4,993.9              5,057.0   (1.2)


  (1) Weighted average number of shares in the period adjusted by free capital increases funded by
  reserves, that mean a change in the number of shares that did not produce any variation of equity
  structure, as if they were done at the beginning of the first period presented. That relates the two
  capital increases funded by a charge on freely disposable reserves, recorded with the Mercantile Register
  on February 18, 2003 and on April 24, 2003. Moreover, the number of shares in 2003 is affected by the
  capital reduction by amortization of treasury stock shares, from April 11, 2003, when the AGM was held,
  and that was recorded with the Mercantile Register on September 10, 2003. Accordingly, there was an
  average number of shares outstanding at the end of the period of 4,993,885,993.




  Telefonica Group
  Results by Companies

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                   REVENUES                    EBITDA                     OPERATING PROFIT
                             January - September        January - September             January - September
                           2003      2002     % Chg.   2003    2002    % Chg.   2003    2002           % Chg.
  Telefonica de Espana     7,593.3   7,684.9  (1.2)   3,347.7 3,370.1  (0.7)   1,405.6 1,333.4    5.4
  Group
  Telefonica               4,649.9   5,434.2 (14.4)   2,231.3 2,635.1 (15.3)     959.3 1,055.6  (9.1)
  Latinoamerica G.
  Telefonica Empresas      1,308.4   1,318.0  (0.7)     199.5    67.4  196.1      17.0 (159.0)    c.s
  Mobile Business          7,539.4   7,048.1    7.0   3,451.3 2,905.5   18.8   2,315.4 1,862.9   24.3
  Directories Business       425.8     415.6    2.5     138.4   116.6   18.7     118.8    95.4   24.6
  Terra-Lycos Group          390.1     465.4 (16.2)    (47.1) (116.3) (59.5)   (104.3) (226.8) (54.0)
  Atento Grupo               356.6     435.6 (18.1)      41.0    30.5   34.2       0.2  (29.7)    c.s
  Content and Media        1,036.7     724.2   43.2     160.8    77.6  107.2     121.4    37.9  220.4
  Business
  Other companies            316.2     719.5 (56.1)   (158.1) (117.4)   34.7   (213.1) (175.8)   21.2
  Eliminations           (2,783.2) (2,778.6)    0.2    (70.6)  (40.2)   75.9    (28.8)    11.7    c.s
  Group                   20,833.2  21,467.0  (3.0)   9,294.1 8,928.9    4.1   4,591.4 3,805.5   20.7







  Telefonica Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                          January-September                      July -
                                                                               September
                                                2003           2002    % Chg.     2003       2002         % Chg.
  Operating revenues                               20,833.2   21,467.0  (3.0)      7,269.9   6,831.5    6.4
  Internal expend capitalized in fixed                357.0      397.7 (10.2)        131.1     164.2 (20.1)
  assets (1)
  Operating expenses                             (11,694.2) (12,588.4)  (7.1)    (3,993.6) (4,045.5)  (1.3)
  Supplies                                        (4,570.9)  (5,206.7) (12.2)    (1,597.3) (1,726.5)  (7.5)
  Personnel expenses                              (3,470.6)  (3,641.6)  (4.7)    (1,125.9) (1,123.1)    0.2
  Subcontracts                                    (3,273.1)  (3,426.4)  (4.5)    (1,117.9) (1,107.2)    1.0
  Taxes                                             (379.5)    (313.8)   21.0      (152.5)    (88.6)   72.1
  Other net operating income (expense)              (201.9)    (347.3) (41.9)       (69.3)    (97.0) (28.6)
  EBITDA                                            9,294.1    8,928.9    4.1      3,338.1   2,853.2   17.0
  Depreciation and amortization                   (4,702.7)  (5,123.4)  (8.2)    (1,564.8) (1,562.7)    0.1
  Operating profit                                  4,591.4    3,805.5   20.7      1,773.4   1,290.5   37.4
  Profit from associated companies                  (161.4)    (415.5) (61.1)       (28.9)   (162.5) (82.2)
  Financial net income (expense)                    (750.6)  (2,010.9) (62.7)      (454.1)   (401.9)   13.0
  Amortization of goodwill                          (326.0)    (503.0) (35.2)      (113.8)   (157.9) (27.9)
  Extraordinary net income (expense)                 (52.3)  (6,356.3) (99.2)       (92.1)   (199.0) (53.7)
  Income before taxes                               3,301.1  (5,480.1)    c.s      1,084.4     369.2  193.8
  Income taxes                                    (1,118.2)      206.3    c.s      (402.4)     103.5    c.s
  Net income before minority interests              2,182.9  (5,273.8)    c.s        682.0     472.7   44.3
  Minority interests                                (168.5)      237.8    c.s       (93.2)      65.5    c.s
  Net income                                        2,014.4  (5,036.1)    c.s        588.7     538.1    9.4
  Average shares (millions) (2)                     4,993.9    5,057.0  (1.2)      4,955.9   5,057.0  (2.0)
  Net income per share                                  0.4      (1.0)    c.s          0.1       0.1   11.6


  (1) Including work in process.
  (2) Weighted average number of shares in the period adjusted by free capital increases funded by
  reserves, that mean a change in the number of shares that did not produce any variation of equity
  structure, as if they were done at the beginning of the first period presented. That relates the two
  capital increases funded by a charge on freely disposable reserves, recorded with the Mercantile Register
  on February 18, 2003 and on April 24, 2003. Moreover, the number of shares in 2003 is affected by the
  capital reduction by amortization of treasury stock shares, from April 11, 2003, when the AGM was held,
  and that was recorded with the Mercantile Register on September 10, 2003. Accordingly, there was an
  average number of shares outstanding at the end of the period of 4,993,885,993.




  Telefonica Group
  Consolidated Balance Sheet

  Unaudited figures                                                               (Euros in millions)
                                                               September
                                                            2003      2002                    % Chg.
  Subscribed shares not paid-in                               223.6     327.2        (31.7)
  Long-term assets                                         45,346.1  56,091.6        (19.2)
  Start up expenses                                           566.2     626.4         (9.6)
  Intangible net assets                                     7,311.5  16,637.3        (56.1)
  Fixed net assets                                         25,034.7  26,843.8         (6.7)
  Investment                                               12,433.7  11,984.1           3.8
  Goodwill on consolidation                                 6,628.7   7,488.5        (11.5)
  Deferred expenses                                           562.1     632.3        (11.1)
  Current assets                                           10,508.1  10,798.6         (2.7)
  Inventories                                                 393.2     610.9        (35.6)
  Accounts receivable                                       6,515.0   6,862.1         (5.1)
  Short-term investments                                    2,708.8   2,279.8          18.8
  Cash and banks                                              558.3     514.6           8.5
  Others                                                      332.7     531.1        (37.4)
  Assets = Liabilities                                     63,268.6  75,338.2        (16.0)
  Shareholder's equity                                     17,178.3  17,184.8         (0.0)
  Minority interests                                        4,718.6   9,198.6        (48.7)
  Badwill on consolidation                                     10.1      12.6        (19.7)
  Deferred income                                             772.4   1,301.8        (40.7)
  Provisions for risks and expenses                         6,548.8  10,026.1        (34.7)
  Long-term debt                                           19,306.4  20,782.6         (7.1)
  Accrued taxes payable                                     1,300.4   1,794.7        (27.5)
  Short-term debt including current maturities              4,806.4   6,777.1        (29.1)
  Interest payable                                            271.9     318.5        (14.6)
  Other creditors                                           8,355.4   7,941.3           5.2
  Financial Data
  Consolidated net debt (1)                                20,462.8  24,575.0        (16.7)
  Consolidated debt ratio (2)                                 46.1%     45.5%      0.6 p.p.


  (1) Net debt: Long-term debt + 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 Group
    Change in Debt

    Unaudited figures                                                                           (Euros in millions)
                                                                                        January - September 2003
    I                    Cash flows from operations                                     8,853.2
    II                   Other payment related to operating activities                  (697.4)
    III                  Net interest payment                                         (1,314.3)
    IV                   Payment for income tax                                         (167.8)
    A= I+II+III+IV       Net cash provided by operating activities                      6,673.7
    B                    Net payment for investment in fixed and intangible assets    (2,264.3)
    C= A+B               Net free cash flow after CAPEX                                 4,409.4
    D                    Net payment for financial investment                         (1,936.5)
    E                    Dividends paid                                                 (821.1)
    F=C+D+E              Free cash flow after dividends                                 1,651.8
    G                    Effects of exchange rate changes on net debt                   (586.8)
    H                    Effects on net debt of changes in consolidation and others       168.3
    I                    Net debt at beginning of period                               22,533.1
    J=I-F+G+H            Net debt at end of period                                     20,462.8






    Telefonica Group
    Operating Cash Flow

    Unaudited figures                                                                           (Euros in millions)
                                                                                       January - September 2003
    EBITDA                                                                             9,294.1
    - CAPEX accrued during the period (EoP exchange rate)                            (2,356.9)
    - Other payment related to operating activities                                    (697.4)
    - Net interest payment                                                           (1,314.3)
    - Payment for income tax                                                           (167.8)
    - Investment in working capital                                                    (678.9)
    + Cash received from fixed assets                                                    330.6
    - Net payment for financial investment                                           (1,936.5)
    -Dividends paid                                                                    (821.1)
    = Free Cash Flow after dividends                                                   1,651.8






  Telefonica Group
  Average Exchange Rates Applied


                                                                                                 September
                                                                                          2003                2002
  US Dollar / Euro                                                                       1.110               0.924
  Argentinean Peso / Euro                                                                3.287               2.799
  Chilean Peso / Euro                                                                  733.787             691.878
  Brasilian Real / Euro                                                                  3.457               2.469
  Peruvian Sol / Euro                                                                    3.867               3.367
  Mexican Peso / Euro                                                                   12.131               9.395


  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 dollars 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)
                                                                             September
                                                                             2003            2002     % Chg.
  Lines in service                                                       18,875.3        18,712.0       0.9
  PSTN lines                                                             15,123.6        15,627.1     (3.2)
  ISDN equivalent basic access                                            1,800.8         1,737.5       3.6
  ISDN equivalent primary access                                            420.2           488.4    (14.0)
  2/6 Accesses for PBX and Ibercom                                          110.3           111.9     (1.4)
  ADSL connections                                                        1,420.5           747.0      90.2
  Employees (units)                                                      40,357.0        40,851.0     (1.2)
  Traffic (millions of minutes)                                         103,297.0       107,134.0     (3.6)


  Note: PSTN (including Public Use Telephony) (x 1) - ISDN Basic access (x 2) - ISDN Primary access (x 30)
  - 2/6 Accesses (x 30) - ADSL Lines (x1).





  Telefonica de Espana
  Operating Revenues (Individual)

  Unaudited figures                                                                                          (Euros in
                                                                                                             millions)
                                          January -                      July-September
                                          September
                                             2003         2002   % Chg.       2003       2002   % Chg.
  Traditional Services                           5,637.0 5,825.3   (3.2)        1,850.5 1,906.3   (2.9)
  Client network access (1)                      2,229.5 2,155.5     3.4          736.0   718.9     2.4
  Voice usage (Net total) (2)                    2,551.5 2,775.6   (8.1)          833.4   893.2   (6.7)
  Local                                            606.1   667.0   (9.1)          183.7   197.8   (7.1)
  Provincial                                       202.2   218.5   (7.5)           64.4    71.9  (10.4)
  Domestic long distance                           344.2   386.1  (10.9)          109.3   122.1  (10.5)
  International long distance                      190.9   188.1     1.5           67.8    61.0    11.2
  Fixed to mobile                                  943.8 1,053.4  (10.4)          322.3   360.3  (10.6)
  IRIS and others (3)                              264.3   262.5     0.7           85.8    80.1     7.2
  Handsets sales and maintenance                   523.5   531.9   (1.6)          169.7   178.0   (4.7)
  Leased circuits and TV broadcasting              107.9   119.3   (9.6)           38.0    46.4  (18.1)
  Other business lines (4)                         224.6   243.0   (7.5)           73.4    69.7     5.3
  Internet and Broadband Services                  611.0   456.8    33.7          211.8   154.0    37.5
  Narrowband                                       216.5   286.0  (24.3)           66.8    90.0  (25.8)
  Broadband (retail)                               394.5   170.8   130.9          145.0    64.0   126.6
  Wholesale Services                             1,057.0 1,121.5   (5.7)          364.6   382.0   (4.6)
  National interconnection                         266.8   296.5  (10.0)           87.4   113.7  (23.1)
  Wholesale ADSL (Megabase and                     117.4    65.2    80.1           42.2    25.2    67.9
  GigADSL)
  International operators services                 219.9   247.7  (11.2)           79.4    84.9   (6.4)
  Other national operators services                453.0   512.1  (11.5)          155.5   158.3   (1.8)
  (5)
  Total operating revenues                       7,305.0 7,403.7   (1.3)        2,426.8 2,442.2   (0.6)


  (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 -                        July -
                                          September                      September
                                            2003         2002    % Chg.     2003       2002    % Chg.
  Operating revenues                           7,593.3   7,684.9  (1.2)      2,538.4   2,553.7  (0.6)
  Internal expend capitalized in fixed           107.6     125.0 (13.9)         32.2      42.9 (25.0)
  assets (1)
  Operating expenses                         (4,303.4) (4,375.1)  (1.6)    (1,451.4) (1,497.7)  (3.1)
  Other net operating income (expense)          (49.8)    (64.6) (22.9)       (13.3)    (14.4)  (7.5)
  EBITDA                                       3,347.7   3,370.1  (0.7)      1,105.9   1,084.6    2.0
  Depreciation and amortization              (1,942.1) (2,036.7)  (4.6)      (638.1)   (683.4)  (6.6)
  Operating profit                             1,405.6   1,333.4    5.4        467.8     401.2   16.6
  Profit from associated companies               (0.7)     (1.3) (41.8)        (0.2)     (0.4) (56.4)
  Financial net income (expense)               (340.2)   (291.6)   16.7      (111.6)    (90.2)   23.7
  Amortization of goodwill                       (0.2)     (7.3) (96.8)        (0.1)     (0.8) (90.8)
  Extraordinary net income (expense)              23.1   (247.1)    c.s          1.9    (99.1)    c.s
  Income before taxes                          1,087.5     786.1   38.4        357.8     210.6   69.9
  Income taxes                                 (301.7)   (165.8)   82.0      (100.0)    (57.7)   73.3
  Net income before minority interests           785.8     620.3   26.7        257.8     153.0   68.6
  Minority interests                             (0.0)     (0.1) (52.9)          0.0     (0.0)    c.s
  Net income                                     785.8     620.2   26.7        257.9     152.9   68.6


  (1) Including work in process






  Telefonica Latinoamerica Group
  Companies Financial Data

  Unaudited figures                                                                              (Euros in millions)
                                                                        January-September
                                                       2003          2002           % Chg
  Telesp
  Operating revenues                                2,543.2       2,998.3          (15.2)
  EBITDA                                            1,210.0       1,540.9          (21.5)
  EBITDA margin                                       47.6%         51.4%      (3.8) p.p.
  Telefonica de Argentina
  Operating revenues                                  601.9         624.3           (3.6)
  EBITDA                                              359.1         312.6            14.9
  EBITDA margin (1)                                   59.7%         50.1%        9.6 p.p.
  Telefonica CTC Chile
  Operating revenues                                  706.0         837.1          (15.7)
  EBITDA                                              306.2         346.0          (11.5)
  EBITDA margin                                       43.4%         41.3%        2.0 p.p.
  Telefonica del Peru
  Operating revenues                                  815.6         937.7          (13.0)
  EBITDA                                              359.4         437.6          (17.9)
  EBITDA margin                                       44.1%         46.7%      (2.6) p.p.


  Note: EBITDA before management fees. Data for Telefonica de Argentina include the ISP business of Advance, while
  those of Telefonica CTC Chile (in 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)
                                                                      September
                                                                    2003             2002  % Chg.
  Telesp
  Lines in Service (1)                                          12,776.9         12,867.4   (0.7)
  PSTN Lines                                                    11,191.9         11,246.5   (0.5)
  ISDN equivalent accesses                                          31.4             40.1  (21.8)
  2/6 Accesses for PBX and Ibercom                               1,130.0          1,274.2  (11.3)
  ADSL connections                                                 423.5            306.5    38.2
  Employees (units) (3)                                            8,229           10,015  (17.8)
  Traffic (millions of minutes) (2)                             63,612.0         59,321.4     7.2
  Telefonica de Argentina
  Lines in Service (1)                                           4,222.7          4,216.4     0.1
  PSTN Lines                                                     4,086.5          4,101.9   (0.4)
  ISDN equivalent accesses                                           6.4              5.3    19.8
  2/6 Accesses for PBX and Ibercom                                  74.0             77.4   (4.5)
  ADSL connections                                                  55.9             31.7    76.1
  Employees (units) (3)                                            7,990            8,418   (5.1)
  Traffic (millions of minutes) (2)                             26,357.0         24,375.2     8.1
  Telefonica CTC Chile
  Lines in Service (1)                                           2,594.5          2,762.7   (6.1)
  PSTN Lines                                                     2,336.4          2,579.7   (9.4)
  ISDN equivalent accesses                                          93.3             87.8     6.4
  2/6 Accesses for PBX and Ibercom                                  57.2             53.9     6.0
  ADSL connections                                                 107.6             41.3   160.7
  Employees (units) (3)                                            3,236            3,934  (17.7)
  Traffic (millions of minutes) (2)                             18,106.7         19,420.4   (6.8)
  Telefonica del Peru
  Lines in Service (1)                                           1,989.0          1,816.6     9.5
  PSTN Lines                                                     1,886.0          1,757.2     7.3
  ISDN equivalent accesses                                          34.8             34.6     0.7
  2/6 Accesses for PBX and Ibercom                                     -                -       -
  ADSL connections                                                  68.2             24.8   174.5
  Employees (units) (3)                                            4,843            4,400    10.1
  Traffic (millions of minutes) (2)                              9,876.2          9,746.7     1.3

  Telefonica Latinoamerica Group
  Lines in Service (1)                                          21,583.1         21,663.0   (0.4)
  PSTN Lines                                                    19,500.7         19,685.3   (0.9)
  ISDN equivalent accesses                                         165.9            167.8   (1.1)
  2/6 Accesses for PBX and Ibercom                               1,261.2          1,405.6  (10.3)
  ADSL connections                                                 655.2            404.4    62.0
  Employees (units) (3)                                           24,298           26,767   (9.2)
  Traffic (millions of minutes) (2)                            117,951.8        112,863.8     4.5


  (1) PSTN (including Public Use Telephony) (x 1) - ISDN Basic access (x 2) - ISDN Primary access (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 in 2002, not available),
  DLD and ILD. January-September accumulated data.
  (3) Calculated with the wireline company staff of the fixed telephone operator (OTF) and the subsidiaries that are
  consolidated by the full integration method.






  Telefonica Latinoamerica Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                           January -                        July -
                                           September                       September
                                             2003         2002    % Chg.     2003       2002   % Chg.
  Operating revenues                            4,649.9   5,434.2 (14.4)       1,691.1 1,460.2   15.8
  Internal expend capitalized in fixed             33.1      52.5 (37.1)          11.0     9.7   13.4
  assets (1)
  Operating expenses                          (2,332.2) (2,636.4) (11.5)       (842.9) (721.5)   16.8
  Other net operating income (expense)          (119.4)   (215.3) (44.5)        (39.5)  (40.4)  (2.0)
  EBITDA                                        2,231.3   2,635.1 (15.3)         819.7   708.0   15.8
  Depreciation and amortization               (1,272.0) (1,579.5) (19.5)       (439.5) (413.2)    6.4
  Operating profit                                959.3   1,055.6  (9.1)         380.2   294.9   28.9
  Profit from associated companies                  2.0     (4.6)   c.s.         (1.0)   (9.1) (88.8)
  Financial net income (expense)                 (36.3) (1,101.6) (96.7)       (189.0)  (69.3)  172.6
  Amortization of goodwill                       (62.8)    (67.3)  (6.7)        (20.2)  (22.1)  (8.3)
  Extraordinary net income (expense)             (99.5)   (109.5)  (9.2)        (52.2)  (61.1) (14.5)
  Income before taxes                             762.8   (227.4)   c.s.         117.7   133.4 (11.7)
  Income taxes                                  (271.2)      52.6   c.s.        (28.5) (101.7) (72.0)
  Net income before minority interests            491.6   (174.8)   c.s.          89.2    31.7  181.7
  Minority interests                             (57.4)    (20.8)  176.0        (19.7)   (3.7)  435.2
  Net income                                      434.2   (195.6)   c.s.          69.5    28.0  148.4


  (1) Including work in process




   Telefonica Data Group
   Selected Financial Data

   Unaudited figures                                                                             (Euros in millions)
                                                                                 January-September
                                                                     2003       2002       % Chg
   Telefonica Data Espana
   Operating revenues                                               605.7      568.9         6.5
   EBITDA                                                           172.0      136.8        25.7
   EBITDA margin                                                    28.4%      24.0%    4.3 p.p.
   Telefonica Data in Latin America Incumbent Market (1)
   Operating revenues                                               256.8      260.0       (1.2)
   EBITDA                                                            45.9       40.1        14.5
   EBITDA margin                                                    17.9%      15.4%    2.5 p.p.
   Telefonica Deutschland & Telefonica UK (2)
   Operating revenues                                               288.4      297.0       (2.9)
   EBITDA                                                            11.1       18.5      (39.9)
   EBITDA margin                                                     3.9%       6.2%  (2.4) p.p.
   Telefonica Data in Latin America Expanding Market (3)
   Operating revenues                                                46.6       30.7        51.7
   EBITDA                                                          (11.1)     (26.9)      (58.9)
   EBITDA margin                                                  (23.8%)    (87.7%)   63.9 p.p.

   Telefonica Data Group
   Operating revenues                                             1,193.0    1,240.9       (3.9)
   EBITDA                                                           205.3      130.0        57.9
   EBITDA margin                                                    17.2%      10.5%    6.7 p.p.


   (1) Brazil, Argentina, Peru and Chile
   (2) Germany and United Kingdom
   (3) Mexico, USA and Colombia. For 2002, Uruguay is also included.




  Telefonica Empresas
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                           January -                        July -
                                           September                       September
                                                 2003         2002    % Chg.      2003    2002   % Chg.
  Operating revenues                            1,308.4   1,318.0  (0.7)         445.0   394.8   12.7
  Internal expend capitalized in fixed              7.7       6.3   21.5           2.5     0.0    n.s
  assets (1)
  Operating expenses                          (1,116.7) (1,248.6) (10.6)       (374.6) (341.2)    9.8
  Other net operating income (expense)              0.1     (8.3)    c.s         (0.1)     4.5    c.s
  EBITDA                                          199.5      67.4  196.1          72.7    58.1   25.1
  Depreciation and amortization                 (182.4)   (226.4) (19.4)        (61.2)  (66.7)  (8.2)
  Operating profit                                 17.0   (159.0)    c.s          11.5   (8.5)    c.s
  Profit from associated companies                (1.6)    (28.2) (94.4)           0.1  (13.5)    c.s
  Financial net income (expense)                 (37.3)   (129.3) (71.2)        (11.8)  (34.1) (65.5)
  Amortization of goodwill                       (37.3)    (61.3) (39.1)        (12.5)  (15.7) (20.6)
  Extraordinary net income (expense)             (34.1)   (733.9) (95.4)        (30.1)  (32.8)  (8.2)
  Income before taxes                            (93.2) (1,111.6) (91.6)        (42.8) (104.6) (59.1)
  Income taxes                                      4.8     415.6 (98.8)          15.8   339.3 (95.3)
  Net income before minority interests           (88.4)   (696.1) (87.3)        (27.0)   234.7    c.s
  Minority interests                              (3.7)      37.4    c.s         (0.8)     1.5    c.s
  Net income                                     (92.1)   (658.7) (86.0)        (27.8)   236.2    c.s


  (1) Including work in process



   Telefonica Moviles Group
   Selected Operating Data

   Unaudited figures                                                                                     (Thousands)
                                                                        CELLULAR CUSTOMERS
                                                   September 2003        % Chg. 03/02            Weighted (1)
   T Moviles Espana                                          19,107.9                 5.4    19,107.9
   Brasilcel                                                 18,470.2                n.c.     5,898.4
   TCP Argentina                                              1,689.3                 2.9     1,654.0
   T Moviles Peru                                             1,367.3                11.3     1,339.2
   TEM El Salvador                                              233.4                 7.1       210.6
   TEM Guatemala                                                137.5                21.5       137.5
   NewCom Wireless Puerto Rico (2)                              176.1                 0.7         0.0
   Telefonica Moviles Mexico                                  2,729.7                21.1     2,511.6
   Medi Telecom                                               1,865.6                23.4       600.3
   Telefonica Movil Chile (3)                                 2,030.8                15.3         0.0
   Total Managed (4)                                         47,807.8                43.8    31,459.8


   (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 - September
                                                                           2003            2002   % Chg.
   Cellular subscribers                                                19,107.9        18,127.0     5.4
   Contract                                                             7,503.4         6,130.1    22.4
   Prepaid                                                             11,604.5        11,996.9   (3.3)
   Subscribers net adds in year to date (1)                               695.8         1,333.6  (47.8)
   Contract                                                             1,028.0           830.7    23.7
   Prepaid                                                              (332.1)           502.9    c.s.
   Total airtime minutes (millions) (1)                                27,808.0        23,475.0    18.5
   SMS (millions)                                                       6,897.0         6,249.0    10.4
   Employees (units)                                                      4,433           4,373     1.4


   (1) January-September accumulated data.



  Telefonica Moviles Group: Participated Companies
  Selected Operating Data

  Unaudited figures                                                                                       (Thousands)
                                                                                    January - September (1)
                                                                              2003        2002           % Chg.
  Spain and Mediterranean area customers                                      20,973.5    19,638.3    6.8
  Contract                                                                     7,638.3     6,235.6   22.5
  Prepaid                                                                     13,335.2    13,402.7  (0.5)
  Latin America customers (2)                                                 24,627.0    11,666.0  111.1
  Contract                                                                     5,917.0     3,176.0   86.3
  Prepaid                                                                     18,710.0     8,490.0  120.4
  Total airtime minutes (millions) (3)                                        47,271.6    33,018.2   43.2


  (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-September cumulative air minutes of TEM fully consolidated companies.



  Telefonica Moviles Group
  Selected Financial Data

  Unaudited figures                                                                               (Euros in millions)
                                                           January - September
                                                           2003          2002                    % Chg.
  Telefonica Moviles Espana
  Operating revenues                                         5,467.2       5,028.1         8.7
  EBITDA                                                     2,966.9       2,607.2        13.8
  EBITDA margin                                                54.3%         51.9%    2.4 p.p.
  Brazilian Companies (1)
  Operating revenues                                           973.3         944.2         3.1
  EBITDA                                                       373.2         366.2         1.9
  EBITDA margin                                                38.3%         38.8%  (0.4) p.p.
  Telefonica Moviles Mexico (2)
  Operating revenues                                           380.8         294.3        29.4
  EBITDA                                                      (50.4)          34.8         c.s
  EBITDA margin                                              (13.2%)         11.8%         c.s
  TCP Argentina
  Operating revenues                                           169.7         149.6        13.4
  EBITDA                                                        50.6          36.2        39.8
  EBITDA margin                                                29.8%         24.2%    5.6 p.p.
  Telefonica Moviles Peru
  Operating revenues                                           182.7         208.0      (12.2)
  EBITDA                                                        66.1          69.3       (4.6)
  EBITDA margin                                                36.2%         33.3%    2.9 p.p.
  T. Moviles Guatemala and El Salvador
  Operating revenues                                           123.1         142.8      (13.8)
  EBITDA                                                        21.9          27.8      (21.2)
  EBITDA margin                                                17.8%         19.5%  (1.7) p.p.


  (1) In September 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)In 2003 is included the financial data of Grupo Pegaso Telecomunicaciones. Even the operator was acquired in
  September 2002, financial statements are incorporated at cost in 3Q02. 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.



  Telefonica Moviles Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                      January -                          July -
                                      September                        September
                                         2003         2002    % Chg.      2003        2002    % Chg.
  Operating revenues                        7,303.8   6,829.1    7.0        2,667.9   2,312.5   15.4
  Operating expenses                      (3,953.5) (4,037.3)  (2.1)      (1,427.9) (1,330.7)    7.3
  Other net operating income                   18.4      47.1 (60.9)            1.7     (7.1)    c.s
  (expense)
  EBITDA                                    3,368.7   2,838.9   18.7        1,241.7     974.6   27.4
  Depreciation and amortization           (1,072.2)   (988.9)    8.4        (347.4)   (315.6)   10.1
  Operating profit                          2,296.4   1,850.0   24.1          894.2     659.0   35.7
  Profit from associated companies           (56.8)   (118.1) (51.9)          (9.1)    (52.4) (82.7)
  Financial net income (expense)            (259.0)   (201.2)   28.7        (101.9)       3.9    c.s
  Amortization of goodwill                   (74.3)    (61.2)   21.5         (27.8)    (20.3)   36.8
  Extraordinary net income                      5.8 (4,888.4)    c.s          (0.2)      20.8    c.s
  (expense)
  Income before taxes                       1,912.2 (3,418.8)    c.s          755.3     611.0   23.6
  Income taxes                              (666.7)   (607.4)    9.8        (277.8)   (263.5)    5.4
  Net income before minority                1,245.5 (4,026.2)    c.s          477.5     347.5   37.4
  interests
  Minority interests                           12.0     103.2 (88.4)            1.2      62.7 (98.2)
  Net income                                1,257.5 (3,923.0)    c.s          478.7     410.2   16.7





  Mobile Business
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                          January -                        July -
                                          September                      September
                                            2003         2002    % Chg.     2003       2002    % Chg.
  Operating revenues                           7,539.4   7,048.1    7.0      2,756.7   2,371.1   16.3
  Internal expend capitalized in fixed            55.8      65.8 (15.2)         15.5      15.9  (2.8)
  assets (1)
  Operating expenses                         (4,095.7) (4,142.1)  (1.1)    (1,484.5) (1,376.3)    7.9
  Other net operating income (expense)          (48.3)    (66.3) (27.2)       (11.3)    (17.8) (36.3)
  EBITDA                                       3,451.3   2,905.5   18.8      1,276.3     992.9   28.5
  Depreciation and amortization              (1,135.9) (1,042.6)    9.0      (371.6)   (332.5)   11.8
  Operating profit                             2,315.4   1,862.9   24.3        904.7     660.4   37.0
  Profit from associated companies              (56.8)   (118.1) (51.9)        (9.1)    (52.4) (82.7)
  Financial net income (expense)               (286.0)   (237.4)   20.5      (111.8)     (5.8)    n.s
  Amortization of goodwill                      (84.4)    (71.6)   17.9       (31.5)    (23.1)   36.4
  Extraordinary net income (expense)               5.5 (4,888.8)    c.s        (0.5)      21.4    c.s
  Income before taxes                          1,893.6 (3,453.0)    c.s        751.8     600.5   25.2
  Income taxes                                 (666.7)   (604.0)   10.4      (281.5)   (262.5)    7.2
  Net income before minority interests         1,227.0 (4,057.0)    c.s        470.3     338.0   39.1
  Minority interests                              22.5     120.5 (81.4)          5.2      68.0 (92.4)
  Net income                                   1,249.4 (3,936.5)    c.s        475.5     406.1   17.1


  (1) Including work in process


  TPI - Paginas Amarillas Group
  Operating figures in Spain

  Unaudited figures
                                                                                   January - September
                                                                           2003          2002            % Chg
  Books Published
  Yellow Pages*                                                                   77            56
  White Pages                                                                     46            46

  (Euros in million)
  Revenue Breakdown (1)                                                        314.3         293.7              7.0
  Advertising                                                                  279.8         271.6              3.0
  Publishing                                                                   257.2         252.9              1.7
  Yellow Pages                                                                 207.4         206.7              0.4
  White Pages                                                                   48.9          45.2              8.1
  Europages                                                                      0.9           1.0           (17.1)
  Internet                                                                      19.0          16.2             17.2
  Operator Assisted Yellow Pages                                                 2.8           2.5             11.6
  Others                                                                         0.9           0.0              n.s
  Telephony Traffic                                                             13.9           1.3            955.5
  Operator                                                                      18.8          18.9            (0.2)
  Others                                                                         1.8           2.0            (7.5)


  * Includes a breakdown by residential/business services and pocket guides.
  (1) TPI Espana includes Telefonica Publicidad e Informacion S.A. and 11888 Servicio de Consulta Telefonica S.A.U.
  results. Goodman Business Press is not included.



  TPI-Paginas Amarillas Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                        January -                        July -
                                        September                       September
                                          2003         2002   % Chg.      2003        2002   % Chg.
  Operating revenues                            421.7   408.9    3.1           229.2   217.9    5.2
  Operating expenses                          (283.6) (291.9)  (2.8)         (133.6) (131.4)    1.7
  EBITDA                                        138.1   117.0   18.0            95.6    86.5   10.4
  Depreciation and amortization                (19.0)  (20.4)  (6.6)           (6.6)   (6.1)    7.5
  Operating profit                              119.1    96.6   23.2            89.0    80.4   10.7
  Profit from associated companies              (1.0)   (1.1)  (7.2)           (0.3)   (0.4) (22.6)
  Financial net income (expense)                (2.7)     4.1    c.s           (1.0)     9.8    c.s
  Amortization of goodwill                      (2.3)   (2.3)  (1.3)           (1.3)   (0.8)   61.7
  Consolidation adjustments                       0.6     1.1 (46.3)             0.6     0.4 (19.5)
  Extraordinary net income                      (1.1)   (0.5)  124.2           (1.0)   (0.3)  238.4
  (expense)
  Income before taxes                           112.5    97.9   15.0            85.9    89.2  (3.6)
  Income taxes                                 (38.0)  (32.0)   18.7          (26.4)  (23.9)   10.7
  Net income before minority                     74.6    65.9   13.2            59.5    65.3  (8.9)
  interests
  Minority interests                            (3.5)   (1.7)  111.2           (9.1)  (14.2) (36.3)
  Net income                                     71.1    64.3   10.7            50.4    51.1  (1.3)



  Directories Business
  Consolidated Income Statement

  Unaudited figures                                                                                        (Euros in
                                                                                                           millions)
                                            January -                      July -
                                            September                     September
                                              2003        2002   % Chg.     2003       2002   % Chg.
  Operating revenues                               425.8   415.6    2.5         230.1   218.9    5.1
  Internal expend capitalized in fixed             (0.0)   (0.0)    n.s         (0.0)   (0.0)    n.s
  assets (1)
  Operating expenses                             (264.5) (270.1)  (2.1)       (122.6) (117.7)    4.2
  Other net operating income (expense)            (22.8)  (28.8) (20.7)        (11.9)  (15.1) (21.2)
  EBITDA                                           138.4   116.6   18.7          95.6    86.1   11.1
  Depreciation and amortization                   (19.7)  (21.3)  (7.5)         (6.8)   (6.1)   12.2
  Operating profit                                 118.8    95.4   24.6          88.8    80.0   11.0
  Profit from associated companies                 (1.0)   (1.1)  (7.2)         (0.3)   (0.4) (22.6)
  Financial net income (expense)                   (6.0)     4.1    c.s         (1.7)     9.0    c.s
  Amortization of goodwill                         (1.7)   (1.3)   36.5         (0.8)   (0.4)   79.9
  Extraordinary net income (expense)               (1.9)   (0.8)  137.0         (1.5)   (0.3)  447.2
  Income before taxes                              108.3    96.3   12.4          84.6    87.9  (3.8)
  Income taxes                                    (38.0)  (32.0)   18.7        (26.4)  (23.9)   10.7
  Net income before minority interests              70.3    64.3    9.3          58.2    64.1  (9.2)
  Minority interests                               (3.5)   (1.4)  152.5         (9.0)  (14.0) (35.5)
  Net income                                        66.8    62.9    6.1          49.1    50.1  (1.9)


  (1) Including work in process.


    Terra Lycos Group
    Selected Operating Data

    Unaudited figures                                                                                   (Thousands)
                                                                                          September
                                                                             2003      2002           % Chg
    Total Pay Subscribers                                                    4,602.4   2,529.9    81.9
    Access                                                                   1,578.5   1,392.9    13.3
    Narrowband                                                               1,035.3   1,051.1   (1.5)
    Broadband                                                                  543.2     341.9    58.9
    OBP (CSP/Portal)                                                         3,024.0   1,136.9   166.0
    Broadband Access Subscribers by Country                                    543.2     341.9    58.9
    Spain                                                                      142.9     124.6    14.7
    Latin-America                                                              400.3     217.3    84.2
    Employees (units)                                                          2,232     2,751  (18.9)



  Terra Lycos Group
  Consolidated Income Statement

  Unaudited figures                                                                                        (Euros in
                                                                                                           millions)
                                            January -                      July -
                                            September                     September
                                              2003        2002   % Chg.     2003       2002   % Chg.
  Operating revenues                               390.1   465.4 (16.2)         137.3   144.9  (5.3)
  Internal expend capitalized in fixed               0.7     0.8 (13.4)           0.1     0.2 (47.9)
  assets (1)
  Operating expenses                             (432.0) (567.1) (23.8)       (145.8) (174.5) (16.4)
  Other net operating income (expense)             (5.8)  (15.4) (62.3)         (2.0)   (2.2)  (8.2)
  EBITDA                                          (47.1) (116.3) (59.5)        (10.5)  (31.5) (66.8)
  Depreciation and amortization                   (57.2) (110.4) (48.2)        (19.7)  (33.8) (41.8)
  Operating profit                               (104.3) (226.8) (54.0)        (30.1)  (65.4) (53.9)
  Profit from associated companies                (15.0)  (60.3) (75.1)         (6.4)  (21.2) (69.8)
  Financial net income (expense)                    27.1    49.3 (45.1)           5.6    15.6 (63.8)
  Amortization of goodwill                        (62.4) (191.1) (67.3)        (20.2)  (62.2) (67.5)
  Extraordinary net income (expense)                17.4     0.9    n.s          11.6     3.8  204.6
  Income before taxes                            (137.2) (427.9) (67.9)        (39.5) (129.3) (69.5)
  Income taxes                                     (0.2)    92.7    c.s         (0.1)    30.4    c.s
  Net income before minority interests           (137.4) (335.2) (59.0)        (39.6)  (98.9) (60.0)
  Minority interests                                 0.4     3.0 (85.0)           0.4     0.2  162.7
  Net income                                     (137.0) (332.2) (58.8)        (39.1)  (98.7) (60.4)


  (1) Including work in process


  Atento Group
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                        January -                        July -
                                        September                       September
                                          2003         2002   % Chg.      2003        2002   % Chg.
  Operating revenues                            356.6   435.6 (18.1)           114.8   123.6  (7.1)
  Operating expenses                          (317.1) (401.5) (21.0)          (99.0) (109.4)  (9.5)
  Other net operating income                      1.5   (3.6)    c.s           (0.1)     0.3    c.s
  (expense)
  EBITDA                                         41.0    30.5   34.2            15.6    14.5    8.0
  Depreciation and amortization                (40.7)  (60.2) (32.3)          (13.3)  (16.3) (18.4)
  Operating profit                                0.2  (29.7)    c.s             2.4   (1.8)    c.s
  Financial net income (expense)               (24.1)  (67.7) (64.3)           (7.0)  (22.0) (68.1)
  Amortization of goodwill                      (5.2)   (6.3) (17.3)           (1.7)   (2.0) (12.8)
  Extraordinary net income                        2.0   (1.0)    c.s             0.8     1.9 (58.7)
  (expense)
  Income before taxes                          (27.2) (104.7) (74.0)           (5.6)  (23.9) (76.6)
  Income taxes                                    8.3    21.0 (60.6)             1.5     7.2 (79.3)
  Net income before minority                   (18.9)  (83.7) (77.4)           (4.1)  (16.8) (75.4)
  interests
  Minority interests                            (0.4)     0.6    c.s           (0.3)   (0.1)  255.3
  Net income                                   (19.2)  (83.0) (76.8)           (4.4)  (16.9) (74.0)



  Content and Media Business
  Consolidated Income Statement

  Unaudited figures                                                                                         (Euros in
                                                                                                            millions)
                                               January -                        July -
                                               September                      September
                                                  2003        2002   % Chg.      2003       2002   % Chg.
  Operating revenues                                 1,036.7   724.2   43.2          255.0   245.5     3.9
  Internal expend capitalized in fixed                   0.1     0.3 (64.6)            0.1     0.0   390.5
  assets (1)
  Operating expenses                                 (891.9) (648.3)   37.6        (221.5) (224.2)   (1.2)
  Other net operating income (expense)                  15.9     1.4    n.s            0.1   (4.4) (101.4)
  EBITDA                                               160.8    77.6  107.2           33.6    16.9    98.4
  Depreciation and amortization                       (39.5)  (39.7)  (0.6)          (7.3)   (5.7)    29.2
  Operating profit                                     121.4    37.9  220.4           26.3    11.3   133.4
  Profit from associated companies                    (72.3) (178.3) (59.4)         (13.7)  (62.0)  (77.9)
  Antena 3 TV (2)                                          -  (32.9)    n.d              -  (23.6)     n.d
  Via Digital                                         (55.4) (100.4) (44.8)            0.0  (33.8)     n.s
  Others                                              (16.9)  (45.0) (62.3)         (13.7)   (4.5)   203.6
  Financial net income (expense)                      (47.1) (114.0) (58.7)         (25.4)  (39.4)  (35.5)
  Amortization of goodwill                            (70.5)  (69.5)    1.4         (28.9)  (24.0)    20.3
  Extraordinary net income (expense)                  (40.0) (168.3) (76.2)            4.9    24.0  (79.5)
  Income before taxes                                (108.5) (492.2) (77.9)         (36.7)  (90.1)  (59.2)
  Income taxes                                        (41.3)   119.7    c.s         (31.6)    21.8     c.s
  Net income before minority interests               (149.8) (372.5) (59.8)         (68.4)  (68.3)     0.1
  Minority interests                                   (4.3)   (1.7)  151.8          (0.3)   (0.3)    20.8
  Net income                                         (154.1) (374.2) (58.8)         (68.7)  (68.5)     0.2


  (1) Including work in process.
  (2) Antena 3, and its subsidiary Onda Cero, is consolidated by the full consolidation method from the
  first half of 2003, incorporating its financial statements at cost from July 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 in the
  fourth quarter.



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